Utilities Embrace AI for More Integrated Operations: Cisco StudyUtilities Embrace AI for More Integrated Operations: Cisco Study

Nearly half of utilities expect AI will support better collaboration across IT and operational technology (OT) functions integral to their operations, according to a new report by Cisco.

The report spoke to 145 utility industry professionals in 17 countries from management to the C-suite, at firms with annual revenues of more than $100 million. 

OT is defined as technology – hardware, software, networks – that interface with the physical world. In utilities, this includes industrial control systems that automate activities to generate and deliver electricity and natural gas to customers.

Most (90%) survey respondents said they are maintaining or increasing OT expenditure, with 45% saying AI will support better collaboration across IT and OT functions, which is seen as the second most important measure for overcoming internal obstacles to growth. 

A main driver for investment is improving efficiency followed by increasing automation. Firms are investing in industrial networking to protect and maintain dispersed substations, distribution grids and distributed energy resources. 

Currently, a lack of collaboration with IT is hampering the optimization of industrial infrastructure, Cisco said. For example, 43% of utility firms use insights generated through OT data to improve energy management and 48% expect AI to make industrial networking more reliable and secure. A third plans to invest in AI-enabled devices and cloud computing. 

However, cybersecurity risks were seen as the top external (43%) and internal (34%) obstacles to growth. Utilities reported that the primary benefit of IT/OT collaboration is better cybersecurity, which is a top spending priority for almost half (48%) of utility firms over the next two years, followed by compliance with regulatory standards. 

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