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AI Transformation in Energy: Driving Efficiency & Sustainability

How artificial intelligence is reshaping the energy sector for a smarter, greener future

by Huda Marshad
June 29, 2025
in Energy
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Artificial intelligence is rapidly transforming the energy sector, driving a shift toward greater efficiency, sustainability, and cost control. According to KPMG’s Intelligent Energy report, energy companies are not just testing AI—they are scaling it across their operations to address challenges such as supply security, decarbonization, and expense management.

The report highlights that 76% of surveyed energy leaders intend to increase their AI investments, and 60% are already achieving returns above 10% (source: KPMG). AI has already demonstrated the ability to dramatically reduce process times, for example, cutting tasks that once took 21 days down to just 18 minutes.

Key findings emphasize that the industry is preparing for an AI-driven future, with early successes paving the way. Experimentation remains a priority, and data-driven decision-making is seen as the top benefit of AI adoption.

KPMG outlines a three-phase framework for AI transformation in energy companies:

  • Enable: This initial phase focuses on building awareness, experimenting with AI, and aligning organizational goals, including developing strategies and increasing AI literacy.
  • Embed: AI becomes integrated across business processes, with leadership and a dedicated transformation office driving company-wide change.
  • Evolve: Companies move beyond internal improvements to anticipate market shifts and build new business models, connecting producers, operators, consumers, governments, and sustainability initiatives into a cohesive ecosystem.

In summary, scaling AI in the energy sector is more than adopting new tools—it’s about reimagining the entire enterprise to thrive in a rapidly changing landscape.

Tags: AI adoptionArtificial Intelligenceenergy sectorKPMG reportSustainability
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