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New Energy World
New Energy World embraces the whole energy industry as it connects and converges to address the decarbonisation challenge. It covers progress being made across the industry, from the dynamics under way to reduce emissions in oil and gas, through improvements to the efficiency of energy conversion and use, to cutting-edge initiatives in renewable and low carbon technologies.
What are the potential risks of using AI in the energy sector?
30/10/2024
8 min read
Feature
The opportunities offered by artificial intelligence (AI) are vast, with potential to transform the energy sector, in terms of infrastructure and operational performance, on the road to net zero. However, businesses will need to manage the risks to reap the rewards, write Paolo Sbuttoni, Partner, and Oliver Toomey, Associate, at law firm Foot Anstey.
Utilised effectively, powerful AI systems have the potential to transform the energy and infrastructure sector. New models can boost business efficiencies, enhance grid stability and speed up the transition to green technologies. However, many businesses in the sector are still grappling with how to unleash the huge opportunities of AI in a cost-effective, risk-managed way.
Of course, AI already proliferates complex systems in the energy sector and beyond. A report by Microsoft and LinkedIn found that over 75% of global ‘knowledge workers’ are already using AI systems. However, this ‘use’ captures everything from ChatGPT to virtual assistants. Truly disruptive changes to core business operations through AI technologies are much harder to come by, and less prolific than the AI hype might have led you to believe.
The ‘how’ of implementing disruptive AI models is the role of data scientists, operational management and machine learning experts, but lawyers can also play a vital part in helping businesses overcome the strategic and legal challenges of deploying powerful AI systems. The risks cannot be understated, particularly as the European Union (EU) has just imposed far-reaching legislation to control firms using AI systems, and specifically those environments defined as ‘high-risk’, which include energy and utilities. In light of this, solid AI and data governance, regulatory awareness and savvy contract negotiations will all be crucial to reaping the full rewards of groundbreaking AI applications.