According to data published by Precedence Research, AI is revolutionizing the energy sector by optimizing operations, reducing emissions, and supporting faster innovation. AI applications in oil and gas, electricity systems, and industrial sectors are projected to save billions annually and significantly improve energy efficiency. With expected energy savings of 8% by 2035, AI is pivotal in driving the transition to a more sustainable and resilient energy future.
Ottawa, Feb. 10, 2026 (GLOBE NEWSWIRE) — AI in the energy sector is enhancing system efficiency, reducing operational costs, and accelerating innovation, according to data published by Precedence Research. The technology is expected to yield up to USD 110 billion in annual savings in electricity systems by 2035 and contribute to 8% energy savings across sectors. Despite challenges like regulatory hurdles and a skills gap, AI’s growing role in energy systems is critical for achieving sustainability and meeting global energy goals.
The energy sector, facing rising demand and an increasingly complex operational environment, is increasingly turning to Artificial Intelligence (AI) to optimise systems, reduce costs, improve production, and enhance resilience. With the global push for more sustainable energy solutions, AI’s role in improving efficiency, cutting emissions, and supporting faster innovation is becoming crucial.
AI applications are transforming energy systems across multiple fronts from energy generation and transmission to end-use consumption. As AI-driven technologies rapidly advance, energy companies are deploying innovative AI solutions for tasks ranging from predictive maintenance to renewable energy integration, helping to meet both sectoral goals and regulatory targets.
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AI Applications Optimising Energy Systems
The energy sector is vast, complex, and rapidly evolving, driven by the electrification, decarbonisation, and digitalisation of global economies. AI applications in energy systems range from oil and gas operations to electricity grid management, where AI is instrumental in managing the complexity of supply, transmission, and demand profiles.
AI is driving significant energy savings in industrial applications, transportation, and buildings, with potential energy savings of 8% by 2035 across sectors like light industry and transport.
Sectoral Energy Savings (Widespread Adoption Case, 2035)
The application of AI in energy innovation is increasing across all regions, but digital infrastructure gaps remain a challenge, particularly in developing economies, which may delay broader sectoral integration.
In energy innovation, AI is playing a pivotal role in accelerating breakthroughs such as the development of more efficient solar technologies, like perovskite solar cells, where AI is being used to simulate and test a much wider range of materials than could be achieved through traditional methods. AI could drastically reduce the time it takes to discover new energy materials, a process that would otherwise take years.
While the potential for AI in the energy sector is immense, several barriers exist to its widespread adoption:
The energy sector is undergoing a profound transformation, and AI will play a crucial role in shaping its future. From optimising energy systems to accelerating innovation, AI is set to enhance efficiency, reduce costs, and improve resilience across the sector. While renewables are already leading the charge in providing cleaner energy, the role of AI in driving future advancements, such as the integration of small modular reactors (SMRs) and new energy storage technologies, will be vital in meeting global energy goals.
As AI adoption in the energy sector increases, it will help to solve complex energy challenges, unlocking new opportunities for a more sustainable and innovative energy system. However, addressing the barriers to adoption will be essential for realising the full potential of AI in energy.
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