AI will not destroy jobs in the energy sector; it will help us better manage the growing torrent of data to drive business benefits

 

In 2013, a paper by two University of Oxford academics went viral. It predicted the likelihood of certain jobs being replaced by computers.

The Future of Work

Dr Carl Benedikt Frey and Professor Michael Osborne’s paper, The Future of Employment, built on economist John Maynard Keynes’ idea. Keynes argued that new technologies could make labour more efficient faster than society could find new uses for it. In short, many of us might be replaced by computers.

Twelve years later, advances in artificial intelligence (AI) are accelerating innovation. Many now wonder whether Frey, Osborne and Keynes were right.

Will this play out in our sector?

Energy suppliers are adopting AI tools quickly. They use them for demand forecasting, image recognition in remote inspections, and automation of smart meter reading.

Consulting firm Indigo Advisory suggests there are more than 50 individual use cases for AI in the energy secto. The market is already worth $13 billion. The market is already worth $13 billion.

One use case the group identifies is predictive analysis, using statistical models and machine learning algorithms to analyse real-time and historical data and make predictions about future events. It also sees a rise in the use of digital twins, virtual clones of real-world systems, such as energy grids, which are updated with real-time data and used to improve the performance of their real-world counterparts.

With so many potential use cases, the UK Government has asked the regulator Ofgem to outline its strategic views on the use of AI in the sector.

In a 2024 response to the government, Ofgem said, “The use of artificial intelligence within the energy sector can help a fundamental transformation of the energy system by improving planning, management and real-time operation. It has a central role in building a smart, digital energy system at the lowest possible cost for households and businesses. It cannot deliver on this huge potential without a clear regulatory framework to protect energy consumers.”

Where AI offers particularly game-changing potential is in its ability to crunch and understand the growing wave of data emerging from the country’s energy networks. These include:

• Analysing patterns in demand and supply, price trends and weather forecasts to predict market movements and improve demand forecasting;
• Assessing market risk to make decisions on hedging;
• Leveraging data to help businesses understand where low carbon technologies can be used and how grants can be obtained.

Machine-learning techniques are well suited to the data challenge and have been widely used to identify hidden trends in data. Such techniques are already being used to help improve energy demand predictions.

Two companies that understand the potential of AI in the energy sector to gain data insights more than most are Procode and Optima Energy.

Procode offers its clients access to the rich stream of valuable smart meter consumption data that flows every second from Britain’s network of more than 30 million smart meters, both real-time and up to 13 months of historical data. In addition, they provide EPC data and information on adoption of low-carbon technologies and availability of green grants. These data-powered solutions enable companies to take back control of their data, identify cost savings and enable them to enact measurable change in their behaviours. Having high quality data to feed into AI and machine learning is vital, if poor data is used the insights will also be poor quality.

Procode’s Director of Sales, Douglas Green says, “We are emerging into a new era of big data in the energy sector. Having access to granular data is crucial in understanding how a business uses energy over its sites and how demand changes through the day and between seasons. Procode has always been at the bleeding edge of technology, and we can recognise the value that AI will unlock in that data.”

Optima Energy’s software and service offering allows their business clients to take a deep-dive into energy and invoice data via its market-leading Optima cloud-based data management platform. The software’s accurate and automated validation of energy data is vital for businesses to ensure they are being correctly charged. Drawing on data from nearly half a million meters across 200,000 locations nationwide, Optima transforms vast, fragmented datasets into actionable insights identifying incorrect charges, uncovering efficiency opportunities, and advancing businesses on their journey to Net Zero. This validated consumption data also feeds directly into Optii’s carbon accounting module, empowering organisations to accurately track and report greenhouse gas emissions, ensure compliance, and shape effective sustainability strategies.

Sebastien Weyland, Optima’s managing director, says, “The scale and complexity of energy data is increasing exponentially. By combining human expertise with AI-driven automation, we’re giving businesses the tools to make faster, smarter energy decisions while ensuring every pound they spend on energy is correctly accounted for. AI isn’t replacing people, it’s enhancing their ability to deliver value. At Optima, AI is central to our strategy and roadmap, driving the development of more capable, accurate systems and enabling us to deliver even better service—while keeping human expertise at the heart of energy management”.

Our two companies do not subscribe to the view that AI will replace people. There will always be humans in the loop in our view, giving people better tools than ever before to offer insights to clients.

Recent research from Goldman Sachs shows that AI will not necessarily result in job losses but will transform roles and could increase global GDP by 7%

One group who can benefit greatly from AI-powered tools are energy brokers and third-party intermediaries (TPIs).

Britain’s 5.5 million small to medium-sized businesses are known for their resilience in an ever-changing world. In recent years, they have faced up to high levels of inflation, increased taxes, uncertainty in global markets and rising energy costs.

On the last of these points, more than a third of companies employ an energy broker or TPI to help them navigate a complex supplier market. While householders enjoy the ability to easily compare energy costs between suppliers and switching is easy, it is harder in the business market. For businesses, getting stuck on an expensive business tariff can cost thousands in lost savings and so they turn to brokers and TPIs for help.

Getting the best deal for a business on their energy usage means having the best data. TPIs and energy brokers need access to large volumes of comparative data – both about business client energy usage and the state of the supply market.

With data volumes growing exponentially in the energy sector tied to the introduction as smart meters and industry initiatives such as Market wide Half-Hourly Settlement, brokers and TPIs will need the best tools to be able to access both real-time and historical energy usage data for their business clients.

Procode and Optima Energy are both using technology to enhance the power of people to understand trends and data and help business clients identify their needs, drive down costs and help prepare Britain for a Net Zero future.

As trusted technology partners, Optima Energy and Procode are always there to help with this journey. Together we can improve the ability of TPIs and brokers to monitor and manage energy usage, validate bills and contrast and compare energy suppliers using big data, at the same time as using the power of AI to drive down costs.