One in five energy companies is now using agentic AI (artificial intelligence) to automate complex decision-making, with cases of the technology being used in the sector increasing, a new report has found.
About 88 per cent of executives believe AI has a very positive effect on energy and their relationship is now "symbiotic", said the Powering Possible report from Abu Dhabi National Oil Company and Microsoft released on Thursday.
Business leaders in China and India were the most optimistic, with 100 per cent and 94 per cent, respectively, believing "AI is a force for good", the survey said.
"Collaboration between energy and technology leaders is no longer nice to have - it is a must-do, if we are to unlock the full potential of AI," Dr Sultan Al Jaber, Minister of Industry and Advanced Technology, and chairman of Adnoc, wrote in the report.
The study gathered insights from more than 850 global experts across energy, technology, AI, academia and finance, including those from ChatGPT maker OpenAI, France's TotalEnergies and the International Energy Agency.
With AI emerging as a top priority for energy companies, industry leaders are "moving from siloed operations to strategic collaboration, driven by the urgent need to jointly tackle electricity affordability, sustainability and reliability, while unlocking innovation at scale", it said.
That would also lead to the formation of more national or regional councils dedicated to the energy-AI axis in 2026, the report noted.
This would be further quantified with the expectation that more companies will be reporting "tangible energy efficiency improvements attributed to AI", it added.
On the regulatory side, governments may also be prompted to draw up "AI-ready" regulatory frameworks that would integrate data access, cyber resilience and market participation, the study said.
"This aligns with the survey participants' call for policy modernisation and responsible AI governance frameworks to ensure AI use in critical energy systems is safe, transparent and ethical," it said.
Still, despite the growing adoption, there are still challenges that need to be addressed. More than three quarters of participants said talent and training remains a major challenge to AI adoption and use, training methods and a stronger talent-retention programme.
And in terms of investment – despite 87 per cent of organisations claiming they had increased spending on AI and digital infrastructure in the past 12 months – trillions of dollars in long-term capital are still needed to sustain the AI-in-energy trends, Douglas Kimmelman, executive chairman of Energy Capital Partners, wrote in the report.
"The investment community must evolve to meet this challenge, financing not only technology and infrastructure, but also the skills needed for a sustainable, AI-enabled energy future," he said.
AI's explosion has enabled major transformation in several industries, with its innovation opening up new possibilities that help streamline operations and create new streams of revenue.
Meanwhile, the rise in the number of data centres has also led to the need for more sustainable power generation plants.
"Accelerating the transition to a more sustainable, secure and inclusive energy future requires deep collaboration between governments, energy providers, technology companies and innovators everywhere," Brad Smith, vice chairman and president of Microsoft, wrote in the report.
