According to Grand View Research, the global AI-in-energy market is forecast to reach $196.6 billion by 2030. Meanwhile, the National Grid projects that UK electricity demand will double by 2050, driven by rapid electrification of transport and heating. The message is clear: energy firms that fail to modernise their systems risk being left behind.

AI in energy at a glance

The AI-in-energy sector is booming. Octopus Energy’s Kraken platform now manages over 54 million customer accounts worldwide, and European utilities are transforming old power plants into AI-powered data centres to improve flexibility and resilience.

Despite this, many UK utilities still rely on bespoke systems built 10-20 years ago. This creates challenges: 40% of utility executives say bespoke software modernisation is critical, and 54% worry AI could do more harm than good without proper controls (Propel Tech survey).

Why modernise?

Older systems were designed for a very different energy landscape. Today, utilities face:

• Scalability challenges: Old platforms struggle to handle vast volumes of real-time data from smart meters, IoT sensors, and renewables.
  
  
• Data silos: Fragmented storage prevents AI from optimising energy distribution, forecasting demand, or managing maintenance efficiently.
  
  
• Compliance and security risks: New regulations and cyber threats demand systems that can respond dynamically to protect critical infrastructure.
  
  

David Ritchie, co-founder of Propel Tech, explains:

"AI can optimise everything from load forecasting to asset management, but it won’t bolt onto outdated infrastructure. To unlock its potential, utilities need modernised, AI-ready platforms that integrate with their unique data and workflows."

AI success in action… Octopus Energy: Kraken platform

Kraken manages 54 million accounts, optimising energy distribution, improving forecasting, and reducing operational costs. It demonstrates how AI can scale without disrupting existing systems.

Practical steps for utilities preparing for AI

1. Assess current systems: Conduct a software health check to identify gaps and opportunities. Propel Tech offers a free, no-obligation AI readiness audit.
   
   
2. Strengthen existing platforms: Optimise and scale software to handle AI workloads rather than replacing everything.
   
   
3. Build robust data pipelines: Ensure data from meters, sensors, and IoT devices flows seamlessly into AI tools.
   
   
4. Focus on automation: Prepare workflows for AI-assisted decision-making, from predictive maintenance to energy trading.
   
   
5. Prioritise security and compliance: Protect critical infrastructure while meeting evolving regulatory demands.

Plug-and-play?

AI is transforming the energy sector, but it’s not plug-and-play. Utilities that invest in modernisation now will be the ones delivering reliable, resilient, and sustainable energy. 

Andy Brown, co-founder of Propel Tech, says:  "We’re seeing forward-thinking firms treat modernisation as a prerequisite for AI. It’s about making current systems scalable, secure, and ready for the next era of energy management."

By thinking beyond AI hype and focusing on modernisation, utilities can unlock efficiency, resilience, and innovation, ensuring they are ready for the energy challenges of tomorrow.

Ready to see how AI-ready your systems are? Book your free Software Health Check today