By 2027, AI-driven operators will be deployed in 40% of control rooms across the power and utilities sector, significantly reducing human error risks while introducing new cyber-physical system security vulnerabilities, according to Gartner, Inc.
In the 2025 Gartner CIO and Technology Executive Survey, 94% of chief information officers (CIOs) in the power and utilities sector plan to increase their AI investments, with an average spending rise of 38.3%.
“AI technology is set to revolutionize the power and utilities industry,” said Jo-Ann Clynch, Senior Director Analyst at Gartner. “While human decision-making is essential, it can also contribute to industrial accidents. AI-driven operations provide a solution, offering repeatability, precision, and bias-free performance when properly governed.”
The industry is shifting from traditional utility-owned assets to decentralized models driven by technological innovations and changing customer expectations. Future energy systems will be powered by distributed energy resources, like solar panels and energy storage, allowing for customer-owned intelligent assets to optimize costs, production, and comfort.
“Power and utility CIOs need to create intelligent operations that integrate these new assets into their digital ecosystem,” said Clynch. “Investments in data infrastructure, cloud services, and AI integration into control room operations are key to succeeding in this competitive market.”
AI-Powered Control Room Operations: Balancing Efficiency and Security
While AI-driven operators enhance efficiency by processing real-time data, predictive maintenance, and automating anomaly detection, they also bring new cyber-physical security vulnerabilities. This transition demands substantial investment in advanced security measures and compliance with evolving regulations.
“Organizations must implement strict security measures, including access control and scope enforcement, for AI tools and the data they handle,” Clynch said. “CIOs should align their AI strategy with business goals, establish strong governance and security frameworks, and ensure the workforce is adequately trained to manage these tools effectively.”
To navigate the shift to AI-driven operations and maximize the benefits of AI decision intelligence, Gartner advises CIOs in the power and utilities sector to prioritize:
As AI continues to reshape the power and utilities sector, integrating AI systems with effective governance and security will be critical to ensuring long-term success and resilience.