Evening the playing field: AI access for all small utilities

Artificial Intelligence

Utilities

Alex Peats-Bond

CTO, Co-founder @ Senpilot

Empowering Small Utilities: Why AI Isn’t Just for Big Players Anymore

Artificial intelligence (AI) is transforming nearly every industry, including utilities, in the digital age. Larger utilities have already begun to leverage AI to streamline operations, enhance customer experiences, and boost resilience. As amazing as these advancements are, they come with a significant price tag, often in the tens of millions. For instance, many big utilities allocate upwards of $15 million to develop robust AI tools, tailoring solutions to their unique needs and challenges. 

However, that level of investment isn’t feasible for smaller utilities. These smaller utilities face many of the same challenges as their larger counterparts, from maintaining grid stability to responding quickly to outages. So, how can small utilities harness AI to remain competitive and resilient in an increasingly data-driven world? The answer lies in building scalable, accessible AI tools designed with small utilities in mind.

Why AI for Small Utilities Matters

The potential impact of AI on small utilities is infinite. AI can enhance operations by streamlining routine maintenance, predicting equipment failures, optimizing energy distribution, and identifying efficiencies that save time and money. The cost savings alone can be transformational for small utilities working with tight budgets. More importantly, AI can help smaller players provide a higher quality of service and reliability, keeping pace with customer expectations and regulatory requirements.

While AI is a powerful tool, small utilities don’t have the resources to build large, custom AI platforms. The typical budget constraints make it nearly impossible to compete with the multimillion-dollar AI projects of large utilities. This constraint makes affordable, pre-built, and modular AI solutions critical. Focusing on scalable AI solutions, smaller utilities can leverage the same technological advancements driving transformation for their larger counterparts.

Making AI Accessible: The Case for Shared AI Infrastructure

A strong solution for small utilities lies in shared AI infrastructure and services catering to their needs. Rather than designing one-off, expensive systems, smaller utilities can benefit from standardized AI tools that incorporate best practices and core functionalities essential for utilities of all sizes. In practical terms, this could mean standardized solutions in areas like:

Predictive Maintenance

AI-driven predictive maintenance can help utilities monitor the health of their assets, foreseeing breakdowns before they happen. With a shared infrastructure, small utilities could leverage the same predictive capabilities as larger ones but at a fraction of the cost.

Grid Management and Optimization

Using AI to optimize grid management can reduce energy waste and increase efficiency. By giving smaller utilities access to shared grid management AI tools, they can improve the reliability of their operations.

Customer Service Enhancements

AI-driven automated customer service workflows and outage reporting tools can all benefit smaller utilities by enhancing customer engagement and reducing wait times.

Collaboration and Innovation for Inclusive AI Access

One of the most effective ways to bridge the gap is through partnerships with AI providers who understand the unique needs of small utilities. By working closely with small utilities, these providers can build flexible and modular tools, allowing customization without the heavy costs of developing a system from scratch. These collaborations can also help drive down the cost of innovation as solutions become more standardized and widely available.

With the right approach, smaller utilities can gain access to the insights and efficiencies of AI, levelling the playing field and allowing communities everywhere to benefit from reliable, efficient energy service.

AI isn’t a luxury—it’s becoming a necessity. While large utilities may have the budget to try out new AI-driven solutions, small utilities shouldn’t be left behind. By expanding the ability to access scalable and standardized AI solutions, the industry can ensure that everyone benefits from the power of AI. When all utilities, regardless of size, are empowered with cutting-edge technology, we move closer to a future where reliable, resilient, and responsive energy service is available to all.

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