By Sam H 

In 2024, an IBM study revealed that 74% of energy and utility companies are embracing artificial intelligence (AI) to enhance their operations. This rapid adoption reflects a critical shift in the industry, as utilities leverage AI to power smarter, more adaptive automation systems. 

Utility companies can address growing customer demands, regulatory pressures, and operational inefficiencies by combining AI’s ability to analyze vast datasets and predict outcomes with automation’s capacity to execute workflows flawlessly. 

The urgency to adopt these technologies is clear: failing to do so risks falling behind competitors who are already transforming their operations to deliver faster, more reliable services. In this environment, AI-driven automation becomes a strategic imperative to build resilient, future-ready utility organizations.

The Growing Need for Automation in Utilities

1. Evolving Customer Expectations

Utility providers are expected to meet customers demands of fast, seamless interactions, especially during service disruptions or for billing inquiries. A lack of real-time data integration forces customer service agents to toggle through multiple systems, leading to long hold times and customer frustration. 

With the help of Automation technology utility companies can create self-service portals, giving customers instant access to billing inquiries, outage updates, and usage reports. These portals reduce call volumes and enhance customer satisfaction by resolving issues faster and providing them the information when they require it most. 

2. Increasing Regulatory Pressures

Utility companies face stringent regulatory requirements from entities like the Federal Energy Regulatory Commission (FERC) and the North American Electric Reliability Corporation (NERC). These regulations encompass grid reliability, environmental compliance, and data privacy. Manual compliance processes are not only time-intensive but also lead to serious errors, increasing the risk of missing compliance obligations that lead to fines and reputational damage. 

Automation streamlines compliance tracking by centralizing data, automating deadline alerts, and enabling real-time monitoring. These capabilities allow utilities to stay ahead of changing regulations while reducing human errors.

3. Overcoming Legacy System Challenges

Over decades, utility organizations have expanded their operations and systems to meet growing customer demands and regulatory requirements. However, this expansion often involved layering new technologies on top of outdated legacy infrastructure, creating a patchwork of disconnected systems. This fragmented approach has left many utilities organizations struggling with data silos and operational inefficiencies, where critical information like customer billing, meter readings, and outage reports, is scattered across multiple platforms.

For example, in case of a customer reported power outage, service agents may need to toggle between several systems to confirm the outage area, check maintenance schedules, and provide an estimated restoration time. This inefficiency delays responses and frustrates customers.

Automation addresses these issues by integrating customer service, billing, and operational data into a unified system. By implementing automated workflows, utilities can synchronize real-time meter data with outage management systems, allowing service agents to immediately access accurate information about affected areas and scheduled repairs. Field teams can receive automated alerts and GPS-coordinated instructions, reducing response times and ensuring faster issue resolution. This seamless integration not only streamlines operations but also improves customer satisfaction by enabling proactive communication, such as sending outage notifications or updates on restoration progress.

How Automation Transforms Utilities

Automation helps you achieve operational excellence. Here’s how:

• Cost Optimization: By automating routine service requests and processes, companies can reduce operational costs by up to 30%.
• Enhanced Customer Experience: Self-service tools and AI-powered chatbots provide quicker resolutions to customer queries, improving satisfaction rates​ and lowering wait times.
• Proactive Compliance: Automated compliance management systems streamline reporting, reduce oversight risks, and free up teams for strategic initiatives​.

Action Steps for Utility Leaders

Utility leaders must prioritize automation as a strategic investment. Starting small with high-impact areas, such as customer onboarding or compliance tracking, can provide quick wins and build momentum for broader implementation. Measuring success through metrics like time saved, error reduction, and customer satisfaction ensures tangible results and supports scaling efforts across the organization. You can find out more about automation excellence essentials in 2025 in this eBook.