AI Strategy for Utilities: A Value Approach
Utilities across the industry are building their AI strategy as part of broader digital transformation efforts to modernize operations, enhance customer experience, and improve grid reliability.
Leading with Value: The Core of Utility AI Strategy
As part of this evolution, applying a value-centric strategy to artificial intelligence (AI) is not just helpful but essential. It’s how to build both impact and trust as AI is woven into utility operations.
As we explore tools like custom GPTs and agents, we keep returning to one core principle: We must lead with value. For utilities, that value must be measured in tangible outcomes like cost savings, time efficiencies, reliability improvements, knowledge transfer, and operational decision support. Without this focus, we risk building solutions that fail to gain adoption.
Utility Use Case: AI for Legacy Documentation Retrieval
Retrieving legacy documentation is a compelling use case. Utilities often have engineering standards, outage procedures, regulatory filings, maintenance logs trapped in binders, file cabinets, or disconnected systems. By scanning and indexing that material, an agent can help users retrieve information and make connections, uncovering previously inaccessible insights. Access to knowledge and information enables users to find trends, learn from past experiences and make better decisions moving forward, reducing risk and rework.
Building Trust: Preparing Utilities for AI Adoption
Implementation alone is not enough. Adoption is where real value appears, and that depends on trust. People ask, “Do we trust the tool?” And rightly so. Many groups want one source of truth, but you also have to consider whether your data and knowledge are prepared to support AI tools.
A hybrid approach can build trust by showing annotations, linking to original sources and making the AI’s reasoning transparent. The human stays in the loop to verify and validate, helping maintain trust.
Measuring Value: KPIs for AI Strategy in Utilities
Begin by evaluating the tool’s value to separate hype from substance. What happens when people actually use it? Does it improve storm response? Reduce report preparation time? Streamline regulatory compliance? Enhance customer insights? Using design thinking and empathy links tools directly to outcomes. Does it improve speed, intelligence or performance? Rather than forcing a rigid framework, align your KPIs to demonstrate value to your stakeholders quickly.
Ongoing Evaluation: Optimizing AI in Utilities
The final area is the ongoing evaluation of tool accuracy and effectiveness. A feedback loop is essential for success with these tools. You need a system to identify what’s working, what’s not and what needs to evolve.
From Strategy to Results: AI Value in Utilities
The goal is not perfection but resilience. AI is a tool, and its value depends on how we use it. That’s where an AI strategy comes into play. While AI is already here, the impact will come from how it delivers measurable value to your organization.
About the Authors
Carol Bogacz
With over 29 years of analytical experience, Carol is a recognized industry leader known for transforming complex challenges into innovative, data-driven solutions. She brings deep technical expertise and strategic insight to every engagement, guiding teams through the full delivery lifecycle—from discovery and analysis to solution design, implementation, and value realization.
Carol is a Top 25 Thought Leader in Utility Analytics, as recognized by the Utility Analytics Institute, where she also serves on the Board. Her passion for advancing the industry extends into the classroom, where she has spent more than 20 years as an Adjunct Professor of Mathematics and Statistics, shaping the next generation of analytical minds.
She holds a Bachelor of Arts in Mathematics from Truman State University and a Master of Science in Statistics from Iowa State University. Carol is also a certified Prosci® Change Management Practitioner.
Driven by a deep belief in the power of data to inform, connect, and inspire, Carol is dedicated to bridging the gap between information and action. As a consultant, educator, and mentor, she empowers organizations and individuals to lead with clarity—through innovation, strategic thinking, and collaborative leadership.
Lee Orrison
As a person passionate about storytelling, Lee specializes in helping teams and clients transform complex ideas into compelling visual narratives. With a BFA in Graphic Design and training in design thinking, he thrives at the intersection of creativity and strategy, assisting with workshops, reports, and presentations that engage and inspire.
Internally, he focuses on consulting enablement, equipping colleagues with tools and strategies to craft stories that resonate with our clients. Externally, he facilitates engaging workshops to unlock fresh ideas and bring stories to life. What drives him is seeing others succeed in sharing their message. Whether it’s a client unsure how to tell their story or a colleague refining a presentation, Lee is dedicated to empowering others to communicate effectively and meaningfully.
