94% of energy and utility CIOs plan to increase their AI investments by 2025, with an average spending growth of 38.3%
By 2027, 40% of energy companies and utilities will implement Artificial Intelligence (AI)-driven operators in control rooms, reducing the risks of human error but increasing security vulnerabilities in cyber-physical systems, according to the Gartner, Inc..
THE 2025 Gartner CIO and Technology Executive Survey indicates that 94% of CIOs (Chief Information Officers) of energy and utility plan to increase their AI investments in 2025, with an average spending growth of 38.3%.
“AI technology is positioned to transform the energy and utilities sector,” says Jo-Ann Clynch, Senior Director Analyst at Gartner. “The decision making Human intelligence is fundamental, but it is also a significant factor in industrial accidents. AI-driven operations offer a compelling solution, performing tasks with repeatability, accuracy and without bias when governed effectively.”
The energy sector and utilities is transitioning from its traditional utility-owned asset model, driven by technological advancements and evolving customer attitudes. Future decentralization through distributed energy resources such as solar panels and energy storage will enable dynamic circular behaviors, enabling smart customer-owned assets to meet objectives such as cost, production and comfort.
“Energy CIOs and utility should focus on creating intelligent operations to integrate these assets into their digital ecosystem,” says Clynch. “Investing in infrastructure and data analytics, transition to cloud-based services, and prepare for the AI integration in control room operations will help them succeed in this new competitive landscape.”
Security Risk Management in AI-Driven Control Room Operations
Implementing AI-driven operators in control rooms reduces the risk of human error and increases efficiency through real-time data processing, predictive maintenance, and automated anomaly detection. However, this transition introduces new cyber-physical security vulnerabilities, requiring significant investment in security measures advanced and compliance with evolving regulations.
“Enterprises must establish guardrails, such as access control and scoping enforcement, for the deployment of their AI tools and the data they can access,” says Clynch. “CIOs must develop an AI strategy that aligns with business goals, supported by strong governance and security frameworks, and ensure workforce training and infrastructure upgrades for effective management and scalability.”
To successfully navigate the transition to AI-enabled operations and fully leverage AI-driven decision intelligence, Gartner advises energy and IT CIOs to: utility to focus on the following priorities:
– Increase operational efficiency: Develop a comprehensive AI integration plan. Identify key areas in control room operations where AI can minimize human error, and establish governance controls for implementation and monitoring to mitigate risks.
– Strengthening cyber-physical system security: Implement advanced security practices and invest in cutting-edge measures tailored for AI systems, such as quantum-enhanced security. Conduct regular audits of essential security hygiene, including vulnerability assessments and incident response planning.
– Promote effective collaboration between humans and AI: Train control room staff on AI technologies to ensure they can collaborate effectively with AI systems. Emphasize oversight, interpretation of AI results, and maintaining critical thinking in decision-making.
Gartner clients can learn more at “Predicts 2025: Navigating the Digital Nexus in Power and Utilities”. Learn how to create a resilient cybersecurity roadmap in this complementary Gartner research.
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