Implementing AI in Utility Finance: From Data to Decision
Artificial intelligence is not a single technology — it’s a process that builds on a foundation of data, systems, and human expertise.
For utilities, implementing AI in finance starts with the data that already exists across billing systems, work management, asset accounting, and ERP platforms.
The goal is not to replace people, but to enhance the precision, speed, and insight of financial operations by automating repetitive tasks and uncovering relationships hidden in large data sets.
The first step in building AI capabilities is data assembly and normalization
Utilities generate massive amounts of structured and unstructured information: work orders, purchase orders, energy sales data, outage logs, and financial transactions.
AI systems perform best when this data is organized, cleansed, and aligned to consistent standards — for example, the FERC or RUS Uniform System of Accounts (USoA).
Creating a unified data model allows the AI to learn from patterns across the organization, connecting engineering activity with financial outcomes.
Once the data foundation is in place, the next stage is model training and automation setup.
AI tools are trained using historical financial and operational data to identify relationships between cost drivers, load patterns, asset lifecycles, and customer behaviors.
For example, models can learn how maintenance spending correlates with weather or usage patterns, or how grant expenditures must be classified for FEMA reimbursement.
This training process doesn’t require custom coding — many off-the-shelf AI platforms integrate with Excel, Power BI, or ERP systems and can be configured through visual dashboards.
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After the AI models are trained, utilities move into routine automation and monitoring
Here, the models run continuously, scanning data for anomalies, generating forecasts, or preparing draft reports.
AI assistants can explain variances, suggest journal entries, or alert staff to budget trends before they become problems.
The finance team remains in full control — reviewing, validating, and approving AI-generated insights — while the technology handles the time-consuming analytical work.
Over time, the process evolves into continuous learning and optimization.
As more data is collected — from new projects, equipment sensors, or financial transactions — the models retrain and refine themselves.
Periodic review ensures the outputs remain aligned with accounting standards and regulatory expectations.
This cyclical approach — assemble, train, deploy, and improve — allows utilities to implement AI one use case at a time, building confidence and measurable value along the way.
In short, implementing AI in utility finance is a journey that combines good data governance, careful design, and practical experimentation.
Starting with just one or two focus areas — such as forecasting or work order allocation — quickly demonstrates results and builds a foundation for broader automation.
The result is a finance operation that is more predictive, compliant, and capable of supporting strategic decisions in an increasingly data-driven utility environment.
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About Russ Hissom - Article Author
Russ Hissom, CPA is a principal of Utility Accounting & Rates Specialists a firm that provides power and utility cost of service and rate studies, expert witness, and consulting services, and online/on-demand courses on accounting, rates, FERC/RUS construction accounting, financial analysis, and business process improvement services. Russ was a partner in a national accounting and consulting firm for 20 years. He works with electric investor-owned and public power utilities, electric cooperatives, broadband providers, and gas, water, and wastewater utilities. His goal is to share industry best practices to help your business perform effectively and efficiently and meet the challenges of the changing power and utilities industry.
Find out more about Utility Accounting & Rates Specialists here, or you can reach Russ at russ.hissom@uarsconsulting.com.
The material in this article is for informational purposes only and should not be taken as legal or accounting advice provided by Utility Accounting & Rates Specialists, LLC. You should seek formal advice on this topic from your accounting or legal advisor.