Energy Sector Skyrockets AI Investment, But Power Infrastructure Concerns Loom

Companies within the energy sector are significantly increasing their investments in artificial intelligence (AI) and beginning to witness the benefits. However, a recent survey highlights concerns among nearly half of these leaders regarding the capacity of existing power infrastructure to support the escalating electricity demands driven by this technology.

The Powering Possible report, the third annual study conducted by Adnoc, its international investment arm XRG, and Microsoft, revealed that approximately 89% of energy leaders boosted their AI spending in the past year. Furthermore, 63% anticipate that their current AI investments will yield returns that meet or surpass their costs. The study, which surveyed nearly 400 senior executives from the energy and finance sectors, found that 52% are confident in the ability of current infrastructure to handle AI-driven electricity demand, a figure unchanged from 2025.

Looking ahead, the report projects that 74% of respondents expect AI to increase energy consumption by 2030. AI's growing importance is also evident in its ascent on corporate agendas, with 62% of respondents now ranking it among their top two priorities, a substantial increase from 42% in 2025. This marks a significant shift in organizational perspectives on AI's role.

Dr. Sultan Al Jaber, Minister of Industry and Advanced Technology and managing director and group chief executive of Adnoc, noted in the report, "Investment is turning into real business value and resilience, reliability and adaptability now matter as much as efficiency. Intelligence is fast becoming part of how energy is produced, delivered and used."

The adoption of integrated agentic AI workflows, which enable decision-making with minimal human oversight, has more than doubled, rising from 15% to 33%. Additionally, 60% of energy industry respondents are currently piloting or utilizing robotics in their physical operations, according to the study. Only a mere 1% reported not using AI at all.

Dr. Al Jaber further explained, "Agentic AI is helping organisations co-ordinate and adapt in real time. Physical intelligence, which brings AI and robotics together, is turning insight into action by maintaining critical infrastructure and keeping operations running around the clock."

Resilience and Modernization as Key Drivers

The study indicates that resilience has emerged as a primary driver for AI investment in the energy sector, with priorities expanding beyond mere productivity and cost efficiency. Supply stability and reliability are now the most frequently cited measures of AI's contribution, chosen by 39% of respondents, up from 26% in 2025. Data and prediction accuracy saw a decline to 19% from 24%, while cost savings dropped to 13% from 19%.

Grid modernization is also a significant focus, as the expansion of AI necessitates substantial infrastructure development. Two-thirds of respondents identified grid modernization and smart-grid technologies as the leading investment priority to support AI growth, followed by energy storage at 42%.

Confidence in existing infrastructure varies considerably by market. While 74% of leaders in Brazil and 70% in India expressed belief in their systems' ability to meet AI-driven demand, only 40% in the US and 38% in the UK shared this confidence.

Mohamed Al Ramahi, Masdar chief executive, commented in the report, "As AI increases demand for power and economies continue to electrify, energy systems will be asked to do more than ever before. Meeting that challenge is not simply a question of adding capacity. It is about building a system that can adapt, integrate new technologies and respond to changing conditions with confidence."

Industry leaders are also converging on a defined set of priorities for AI governance, aiming to foster an environment where AI can operate safely, reliably, and at scale. Security and system reliability are at the forefront, followed by the transparency and accountability of AI decisions, common technical standards and interoperability, and the protection of national energy sovereignty.

Microsoft vice chairman and president, Brad Smith, emphasized in the study, "Trust will be fundamental. As AI becomes more deeply integrated into organisations and increasingly capable of taking action, people need confidence in how these systems are governed. Innovation and responsibility need to advance together, with people remaining at the centre of how AI is developed and used."