The energy sector is facing a paradox: Even as AI drives explosive demand growth that puts enormous pressure on grid stability, the very same AI offers the best operational path forward for utilities managing this surge. The good news? North American utilities are embracing this reality faster than anticipated, according to Itron’s 2025 Resourcefulness Report.
Utilities Get Ahead of Themselves (in a Good Way)
It may surprise many that in a recent survey, 41% of utilities say they have fully integrated AI, data analytics and grid edge intelligence, beating their own projections from last year's report that it would take up to five years. This accelerated rate represents the immediacy of the challenges they are facing: updating aging infrastructure, integrating renewable energy while ensuring reliability and meeting surging demand caused by data centers, which are projected to use up to 12% of the nation's electricity by 2028. According to the report, these technologies have five important use cases where AI and analytics could have the greatest impact:
- Customer Experience - Analyzing customer data can result in personalized energy usage tips and programs.
- Safety - Sensor and meter data help flag safety issues by detecting anomalies.
- Predictive Maintenance - Grid edge data helps detect equipment wear and conditions that can shorten asset life.
- Energy Demand Forecasting - AI considers historical data, weather patterns and consumer behavior to predict future demand.
- Grid Optimization - Real-time data improves load balancing, reduces losses and supports DER integration.
Each use case relies on real-time data from smart meters and edge devices. This shared foundation means that when one use case is addressed successfully, it often leads to improvements in others.
Regional Dynamics, Barriers to Adoption and the Road Ahead
Utilities across North America face a common challenge: deploying AI-powered technology, analytics and grid edge intelligence where they deliver the greatest impact. In the West, where wildfire risk is severe, 59% of utilities consider these technologies extremely important, with 53% achieving full AI integration. The northeast follows at 48%, driven by explosive data center growth. Meanwhile, Canadian utilities take a more measured approach at 26%, balancing innovation with affordability concerns.
AI implementation is just the beginning. Challenges are inevitable and overcoming them is essential for sustained success. Executives polled for the report cite data infrastructure, governance, standardization and scalability as their top barrier to adoption (49%), followed by concerns about unproven technology managing critical systems (45%). That said, the benefits are clear: utilities using AI-enhanced predictive maintenance report 60% fewer emergency repairs, and AI-powered demand forecasting yields up to a 20% improvement in accuracy.
Underpinning the report findings is a clear message: utilities that establish robust data foundations that tackle even one use case position themselves to address multiple challenges simultaneously. In an era where AI capabilities double every seven months, standing still isn't an option. The grid of tomorrow requires intelligence at the edge today.
Download the full 2025 Resourcefulness Report and its companion research to explore all five strategies utilities are using to integrate AI today: www.itron.com/resourcefulness.
