What are some impacts of Generative Artificial Intelligence in the electric industry?
There is much discussion about artificial intelligence in various industries and its potential to replace human jobs and positions. Taking a broader perspective, it becomes clear that applications of artificial intelligence in the electric industry are primarily focused on enhanced data utilization for grid management, customer service, system maintenance, and planning.
This article explores the current uses of AI in these operational areas. There's even more exciting potential in the finance and accounting functions within a utility, which we will save for the next article.
Generative Artificial Intelligence
Generative AI refers to a class of artificial intelligence models designed to generate content by learning patterns from data. Humans play a crucial role in this process, from gathering data and writing algorithms to testing outcomes and refining the models.
Currently, generative AI is being used in the electric industry in several key areas:
1. Predictive Maintenance: Anticipating equipment failures before they occur.
2. Energy Demand Forecasting and Grid Management: Simulating various consumption scenarios to optimize grid operations.
3. Customer Engagement and Personalization: Analyzing user data to tailor the customer experience to individual preferences.
4. Automating Routine Tasks: Using AI chatbots and systems to handle customer inquiries and other repetitive tasks.
5. Infrastructure Planning and Design: Simulating different scenarios and optimizing resource allocation.
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Accessing Generative AI when your utility is not “large” enough for an ERP platform
Generative AI is enhanced by machine learning, allowing AI to improve through repetitive application of tasks. Some well-known ERP systems have integrated generative AI to enhance various aspects of functionality through real-time data analysis.
What if you don’t have an ERP platform? Numerous other software providers offer AI solutions for these applications. For a listing, you can ask your Copilot or ChatGPT.
Humans remain an integral part of the process, ensuring the data is current and interpreting the analysis. AI is not a perfect solution, but it frees team members from mundane data analytics tasks, potentially requiring new skill sets. Overall, early returns and reviews are positive.
How I Can Assist
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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.