AI represents a huge opportunity for the grid sector as electricity networks become more decentralised and load patterns become increasingly unpredictable. Smart grid technology providers are aggressively implementing AI capabilities into their solutions, promising enhanced optimisation of grid operations and maintenance.
However, for this historically conservative and risk-averse sector, trustworthiness remains a hurdle to mass implementation. Fragmented network data is another challenge – at the same time, it could represent an opportunity for AI to work around the flaws.
Go deeper with GlobalData
Discover B2B Marketing That Performs
Combine business intelligence and editorial excellence to reach engaged professionals across 36 leading media platforms.
In this episode of Energy Technology, we gather insights directly from three leading grid management tech providers: Ralf Blumenthal, SVP Europe at Siemens Grid Software; Linda-Maria Wadman, chief commercial officer at Plexigrid; and Talal Eskandar, executive managing director at Reactive Technologies. They explain the role AI plays in their technologies and what the industry could expect ahead.
We are also joined by Rehaan Shiledar, senior power industry analyst and author of GlobalData’s 2026 Smart Grids report, to discuss the risks and rewards AI can bring to smart grids.
AI in smart grids
AI is becoming embedded across the grid management value chain, from forecasting and planning to fault detection and edge-device control, helping utilities manage the growing complexity of electricity systems.
In modern networks, sensors and Internet of Things devices are placed across grid assets, generating continuous streams of operational and environmental data. When processed via AI-driven analytics, “this stream enables real-time monitoring and predictive maintenance… not only reducing downtime but also extending asset lifespans and minimising cost overruns”, Shiledar explains.
“AI’s integration across grid infrastructure is no longer merely a technological add-on but a transformative force reshaping generation, transmission and distribution.”
How grid tech providers are integrating AI
From inertia forecasting to “agentic” transmission planning, grid tech vendors are deploying AI where it reduces operator burden and accelerates decision-making, particularly as simulation runs and connection requests multiply across the grid.
“We use machine learning and AI algorithms in order to predict under certain conditions how the inertia will look,” says Eskandar. “These insights allow operators to make sure that they use the full capacity of what they have in an efficient way.”
AI can add enormous value in planning and operations – but it can’t be used everywhere, at least not yet. The experts highlight where AI integration makes sense, as well as where it does not.
“We need to be very selective in using AI for where it makes sense,” Blumenthal stresses.
Especially with grids that are considered critical infrastructure, the industry requires airtight accuracy and reliability in grid technologies, which AI in many cases cannot yet guarantee, especially as it deals with fragmented data.
Fragmented data: AI’s opportunity and challenge
Low-voltage networks often have missing or inaccurate data, which has historically slowed the adoption of advanced tools like digital twins. While this may point to an un-AI-friendly environment, Plexigrid’s approach is to use AI to fill the gaps. The company combines AI-driven analytics with physics-based models to improve analytics without sacrificing trustworthiness.
“Here, AI has an important role to play, not because AI is good with bad data, but in this context of very large grids it can help solve the problem of missing data,” Wadman explains. “We train this [technology] on grids with good data, then apply them to grids with poor data.”
Nevertheless, fragmented data remains one of the greatest hurdles for AI integration in grid tech. Blumenthal advises that before AI can deliver reliable outcomes, energy companies need a consistent data foundation, ideally a single, electrically viable digital twin that can be used across planning and operations. Without that, AI risks becoming an expensive layer on top of inconsistent inputs.
Building trust in AI integration
With grid operators typically risk-averse and heavily regulated, Wadman predicts that adoption will likely start with “operator-in-the-loop” advisory systems before moving towards more automated closed-loop control over time.
The role of AI in grid tech is certainly evolving and growing, she says, but it will be many years until it delivers its full potential.
Trust is only earned through demonstrated performance, Blumenthal says. “It is on vendors like ourselves to prove that the digital solutions we bring to the market are reliable – and when customers see that they work, they will adopt.”
What must change for wider AI deployment
For widespread, seamless AI integration in smart grid technologies, the sector must tackle recurring blockers: data quality, interpretability, cybersecurity risks, scaling costs across legacy infrastructure, and regulatory uncertainty that slows investment and deployment.
“These are the areas that grid leaders need to address… for widespread AI integration in grid management solutions,” Shiledar concludes.
Electrify your listening with weekly episodes discussing the latest and greatest developments across the power, oil and gas, and mining sectors. From power plants and pipelines to open pits, our energy journalists pick expert brains to understand the industry-defining topics and cutting-edge technologies transforming operations and productivity. Powered by data and analysis from Mining Technology‘s parent company, GlobalData, the Energy Technology podcast is dripping with industry insights.
Episodes go live every Tuesday, 7am EST (12pm GMT).
Listen to Energy Technology: industry insights on Spotify, Apple Podcasts, Amazon, or wherever you get your podcasts.
If you like our podcast, make sure to subscribe and be notified of new episodes every week. For quick daily updates on the industry, subscribe to our newsletters.
