New Delhi, Feb 26 (IANS) Artificial intelligence (AI) is delivering real business value to the energy sector, with 67 per cent of energy firms already benefiting from active AI use cases, a new report said on Wednesday.
Cloud migration and enterprise resource planning (ERP) modernisation are playing a crucial role in advancing technology adoption in the sector.
According to a KPMG report, energy firms are accelerating their shift to public cloud, which is driving AI adoption.
“As digital technologies and AI reshape the industry, energy leaders have a pivotal opportunity to drive growth through strategic investments in data and advanced tech,” KPMG International’s Global Head for Energy, Natural Resources & Chemicals (ENRC), Anish De, said.
Additionally, the use of ‘Everything-as-a-Service (XaaS)’ is helping companies improve data management and integration.
Around 43 per cent of energy executives reported that XaaS has enhanced their data management processes in the past year, surpassing the overall industry average.
While the energy sector is leading in AI adoption, many companies are still in the early stages, cautiously exploring AI’s full potential, the report said.
Several firms remain in the proof-of-concept phase, ensuring they manage risks while integrating new technologies into their operations.
The report also underlines that the energy sector is ahead of other industries when it comes to resilience and risk-taking.
Unlike other sectors, energy firms are less affected by economic uncertainty, and a significant portion of industry leaders are confident in their technology investments.
According to KPMG, 25 per cent of energy companies report that risk aversion rarely slows down decision-making, compared to the cross-sector average of 17 per cent.
Investment in data and AI capabilities is becoming a key priority for energy companies aiming to stay competitive.
The report added that cybersecurity technology in the sector is linked to profit increases of 16 per cent or more.
Advanced data analytics and strategic decision-making are also proving essential for companies looking to extract maximum value from AI and other new technologies.
KPMG notes that energy firms are taking a practical approach to digital transformation, ensuring that technology investments align with business goals.
The sector is more likely than others to discontinue digital projects that fail to deliver expected results.
Instead of focusing on specific technologies, energy leaders are prioritising a long-term strategic vision to maintain efficiency and stay ahead of industry trends.
–IANS
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