Synopsis
A recent report reveals that 67% of energy firms are experiencing significant business benefits from AI. Key factors include cloud migration and ERP modernization, which drive technological adoption in the sector. Investment in data and AI capabilities is increasingly vital for maintaining competitiveness.Key Takeaways
- 67% of energy firms benefit from AI.
- Cloud migration accelerates AI adoption.
- XaaS improves data management for 43% of executives.
- 25% of firms say risk aversion rarely impacts decisions.
- Cybersecurity investments linked to 16% profit increases.
New Delhi, Feb 26 (NationPress) Artificial Intelligence (AI) is proving to be a significant asset for the energy industry, with 67% of energy companies reaping benefits from existing AI applications, according to a recent report released on Wednesday.
The modernization of enterprise resource planning (ERP) and migration to the cloud are essential factors driving the adoption of advanced technologies within the sector.
As stated in a report by KPMG, energy companies are rapidly transitioning to public cloud systems, which is facilitating the uptake of AI technologies.
"With digital technologies and AI transforming the landscape, leaders in the energy sector have a crucial chance to propel growth through strategic investments in data and sophisticated technologies," remarked Anish De, KPMG International's Global Head for Energy, Natural Resources & Chemicals (ENRC).
Moreover, the implementation of ‘Everything-as-a-Service (XaaS)’ is assisting firms in enhancing their data management and integration efforts.
Approximately 43% of energy executives indicated that XaaS has significantly improved their data management procedures over the past year, exceeding the general industry average.
While the energy sector is at the forefront of AI implementation, many organizations are still in the initial phases, cautiously examining the complete potential of AI, as per the report.
A number of firms remain in the proof-of-concept stage, carefully managing risks while incorporating new technologies into their operations.
The report also emphasizes that the energy sector is more advanced than other industries in terms of resilience and willingness to take risks.
In contrast to other sectors, energy firms experience less impact from economic fluctuations, with many industry leaders expressing confidence in their technology investments.
KPMG reported that 25% of energy companies stated that risk aversion seldom hinders their decision-making, compared to the average of 17% across all sectors.
Investing in data and AI capabilities is becoming increasingly important for energy companies striving to maintain a competitive edge.
The report further highlighted that cybersecurity advancements within the sector correlate to profit increases of 16% percent or more.
Advanced data analytics and informed decision-making are also critical for companies aiming to maximize the benefits derived from AI and other emerging technologies.
KPMG observes that energy firms are adopting a pragmatic approach to digital transformation, ensuring that their technology investments align with their business objectives.
The sector is more inclined than others to cease digital initiatives that do not deliver anticipated outcomes.
Rather than concentrating on specific technologies, energy leaders are focusing on a long-term strategic vision to enhance efficiency and stay ahead of industry developments.
