Abu dhabi: ADNOC and Microsoft today released the second edition of the Powering Possible report, highlighting the opportunities and challenges of AI adoption in the energy sector.
According to Emirates News Agency, more than 850 global experts across energy, technology, AI, academia, and finance - including leaders from OpenAI, TotalEnergies, and the International Energy Agency - contributed to the report. It reveals a significant shift in the AI-energy conversation, moving from interest and pilots to active deployments, indicating that AI transformation is underway.
Nearly nine in ten companies surveyed have increased investment in AI and digital infrastructure since 2024, with 73% deploying AI across multiple business functions. Notably, one in five are already using agentic AI to automate complex decision-making, demonstrating AI's transition from a future prospect to a present-day asset.
The 2025 report data shows that the energy sector is not just powering AI; it is being transformed by it. AI is projected to have its greatest impact on energy distribution and emerging energy solutions, with applications ranging from predictive maintenance and smart grid management to real-time demand forecasting and energy optimisation. 88% of respondents agree that scaling AI is essential to achieving energy transformation. There is a widespread view that investments in grid modernization (55%) are key to keeping up with AI's growing demands, followed by energy storage (38%) and advanced materials like high-efficiency conductors (33%).
Dr. Sultan Ahmed Al Jaber, Minister of Industry and Advanced Technology, and ADNOC Managing Director and Group CEO, stated that AI is delivering real impact today, from predictive maintenance to AI-optimized grids. At ADNOC, AI is embedded as a core capability across operations, driving transformation with measurable gains in reliability, efficiency, and sustainability. The report reflects the sector's progress and provides a roadmap for future steps, including investing in talent, scaling proven solutions, and aligning policy with innovation.
Brad Smith, Vice Chair and President of Microsoft, emphasized that meeting the demands of both the AI era and energy transition requires more than ambition; it necessitates strong partnerships and innovation. Microsoft's collaboration with energy leaders aims to reimagine power systems, develop talent, and build responsible AI practices.
However, realizing AI's full potential is not without challenges. Cybersecurity has overtaken cost as the top consideration for adoption (49%), followed by data quality and consistency (45%) and a shortage of skilled talent (39%). These challenges are compounded by the sector's slower innovation cycles and the complexity of integrating AI into legacy systems.
As AI adoption scales, access to reliable and sustainable energy is becoming a strategic priority. This underscores a critical truth: AI for energy and energy for AI are now inseparable. AI is optimizing grids, reducing energy usage and emissions, and unlocking new efficiencies across the energy value chain.
At the same time, AI's rapid growth is reshaping electricity demand and supply, requiring smarter, faster investment in resilient infrastructure. The challenge and opportunity are to align these forces to accelerate each other, delivering a more sustainable, secure, and inclusive energy future.
The Powering Possible 2025 report preludes the ENACT Majlis in Abu Dhabi, where ADNOC will join more than 80 global energy, finance, tech, and AI leaders and senior Government officials to discuss the future of energy systems.