67% of Energy Companies Recognize AI's Business Value: Report
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Synopsis
A recent report reveals that 67% of energy sector firms are realizing significant business advantages from AI applications. The findings highlight the critical role of cloud migration and ERP modernization in accelerating technology adoption.
Key Takeaways
- 67% of energy firms benefit from AI.
- The shift to public cloud is driving AI adoption.
- XaaS enhances data management.
- Energy sector leads in resilience and risk-taking.
- Investments in data and AI are essential for competitiveness.
New Delhi, Feb 26 (NationPress) Artificial intelligence (AI) is providing substantial business value to the energy industry, with 67% of energy companies reaping benefits from current AI applications, according to a recent report released on Wednesday.
The migration to the cloud and the modernization of enterprise resource planning (ERP) systems are pivotal in enhancing technology adoption within the sector.
The KPMG report indicates that energy firms are rapidly transitioning to the public cloud, which is accelerating AI implementation.
As digital technologies and AI transform the sector, leaders in the energy field have a critical chance to foster growth through strategic investments in data and advanced technology, said Anish De, KPMG International's Global Head for Energy, Natural Resources & Chemicals (ENRC).
Moreover, the adoption of ‘Everything-as-a-Service (XaaS)’ models is assisting companies in enhancing their data management and integration processes.
About 43% of energy executives noted that XaaS has improved their data management practices over the last year, exceeding the average across other industries.
Although the energy sector is at the forefront of AI adoption, numerous companies are still exploring AI’s complete potential cautiously, as highlighted in the report.
Many firms are in the proof-of-concept stage, carefully managing risks while integrating new technologies into their operations.
The report emphasizes that the energy sector is more advanced than other industries in terms of resilience and risk-taking.
In contrast to other sectors, energy companies are less influenced by economic uncertainty, and a considerable number of industry leaders express confidence in their technology investments.
KPMG found that 25% of energy firms report that risk aversion seldom hampers decision-making, while the average across all sectors is 17%.
Investing in data and AI capabilities has emerged as a crucial focus for energy companies striving to remain competitive.
The report also indicates that cybersecurity technology in the sector is associated with profit increases of 16% or more.
Advanced data analytics and strategic decision-making are essential for organizations aiming to derive maximum value from AI and other modern technologies.
KPMG notes that energy firms adopt a pragmatic approach to digital transformation, ensuring that technology investments correspond with business objectives.
The sector demonstrates a greater likelihood than others to halt digital initiatives that do not meet anticipated outcomes.
Rather than concentrating on specific technologies, energy leaders are emphasizing a long-term strategic vision to maintain efficiency and stay ahead of industry developments.
