Building an AI-led Operating Model for Utilities

Utilities are entering a new digital transformation phase as growing operational pressures, aging infrastructure, workforce constraints, and increasing regulatory expectations challenge traditional operating models. While AI adoption is accelerating across the sector, many enterprises continue to struggle with scaling AI initiatives beyond isolated pilots due to fragmented technology environments, governance gaps, and disconnected workflows.

The report draws lessons from frontier organizations to explain how AI-led Systems of Execution (SoE) can help utilities connect data, decisions, and workflows across existing systems without major disruption. It outlines how utilities can institutionalize AI with human oversight, auditability, safety controls, and compliance built into daily operations. It also introduces an AI readiness and maturity matrix to help utilities benchmark their current position, assess enterprise capabilities and outcomes, and identify practical priorities for scaling AI-led execution. It is complemented by a practical readiness roadmap and build-buy-broker decision analysis to help leaders determine what to build internally, what to procure, and how to work effectively with partners.