AI Essential to Energy Transformation, 88% of Leaders Say
â–Ľ Summary
– Cybersecurity has replaced cost as the top consideration for AI adoption, followed by data quality and talent shortages.
– Nearly 90% of companies have increased AI investment since 2024, with 73% deploying AI across multiple business functions.
– The energy sector is being transformed by AI, with its greatest impact expected on distribution and emerging energy solutions.
– 88% of respondents agree that scaling AI is essential for achieving energy transformation, requiring grid modernization and storage investments.
– AI’s rapid growth is reshaping electricity demand and supply, making reliable and sustainable energy a strategic priority.
A significant majority of industry leaders now view artificial intelligence as indispensable for the global energy transformation, according to a major new report. The 2025 Powering Possible report, jointly released by ADNOC and Microsoft, reveals that 88 percent of surveyed experts believe scaling AI is essential to modernizing energy systems. This comprehensive study gathered insights from more than 850 global specialists across energy, technology, finance, and academia, signaling a decisive shift from experimental AI projects to full-scale operational deployments.
Dr. Sultan Ahmed Al Jaber, Minister of Industry and Advanced Technology and ADNOC Managing Director and Group CEO, emphasized that AI has moved beyond theoretical promise into practical application. “AI is delivering real impact today from predictive maintenance to AI-optimized grids,” he stated. “At ADNOC, we’re embedding AI as a core capability across our operations, driving transformation at scale with measurable gains in reliability, efficiency and sustainability.”
Investment patterns confirm this strategic pivot. Nearly 90 percent of companies have increased their AI and digital infrastructure investments since 2024, with 73 percent deploying AI across multiple business functions. Perhaps most tellingly, one in five organizations now utilizes agentic AI to automate complex decision-making processes, demonstrating that artificial intelligence has evolved from future speculation to present-day operational asset.
The energy sector itself is undergoing profound transformation through AI implementation. The technology shows particular promise for energy distribution systems and emerging energy solutions, with applications spanning predictive maintenance, smart grid management, real-time demand forecasting, and comprehensive energy optimization. Industry leaders widely agree that investments in grid modernization represent the most critical requirement for supporting AI’s expanding role, followed by enhanced energy storage capabilities and advanced materials like high-efficiency conductors.
Brad Smith, Vice Chair and President at Microsoft, highlighted the collaborative nature of this transition. “Meeting the demands of both the AI era and energy transition will require more than ambition, it will take strong partnerships and innovation,” Smith noted. “That’s why Microsoft is working closely with energy leaders to reimagine power systems, develop talent and build responsible AI practices.”
However, significant challenges remain in realizing AI’s full potential. Cybersecurity concerns have now surpassed cost considerations as the primary adoption hurdle, followed closely by issues surrounding data quality, consistency, and a persistent shortage of skilled AI talent. These obstacles are magnified by the energy sector’s traditionally longer innovation cycles and the technical complexity of integrating artificial intelligence into legacy infrastructure systems.
The relationship between AI and energy has become fundamentally symbiotic. While AI technologies help optimize energy grids, reduce consumption, minimize emissions, and unlock efficiencies throughout the value chain, the rapid expansion of artificial intelligence simultaneously reshapes electricity demand patterns. This dynamic creates both challenge and opportunity, the need to align these two transformative forces so they mutually accelerate progress toward a more sustainable, secure, and inclusive energy future.
Dr. Al Jaber summarized the path forward: “This report reflects the sector’s progress and provides a roadmap for what comes next, investing in talent, scaling proven solutions and aligning policy with innovation. The next step is clear: move faster, together.”
The Powering Possible 2025 report precedes the upcoming ENACT Majlis in Abu Dhabi, where ADNOC will convene more than 80 global leaders from energy, finance, technology, and government sectors to further discuss the evolution of energy systems in the age of artificial intelligence.
(Source: Economy Middle East)
