Today, ADNOC and Microsoft unveiled the second edition of the report titled “Enhancing Capabilities,” which emphasizes the opportunities and challenges associated with leveraging artificial intelligence tools and solutions within the energy sector.
The findings are based on a survey of over 850 global experts across energy, technology, AI, academia, and finance fields, including Lisa Su, Chair and CEO of AMD, and Dr. Fatih Birol, Executive Director of the International Energy Agency.
The report highlights a significant advancement in understanding the necessity of integrating the energy and AI sectors, moving from initial interest and experiments to full implementation, indicating a rise in AI application usage.
It noted that nearly 90% of leading companies surveyed have increased their investments in AI and digital infrastructure since 2024, with 73% of these firms employing intelligent technologies across various operations. Additionally, one in five companies has initiated the use of AI agents to automate precise decision-making processes, underscoring that AI solutions and tools are now vital assets rather than distant future plans.
The report also indicated that the energy sector provides essential resources for developing AI technologies while significantly benefiting from these advancements in streamlining operations, particularly in energy distribution and innovative solutions. Applications enabling preventive maintenance, smart grid management, real-time demand forecasting, and carbon emission reduction are key areas of focus.
Eighty-eight percent of survey participants agreed that enhancing the use of AI tools and solutions is crucial for achieving a transformative shift in the energy landscape.
Among the participants, 55% identified investment in electrical grid upgrades as a primary priority to keep up with the rapidly growing demand from AI data centers. This was followed by investment in energy storage solutions at 38%, and advances in high-efficiency conductors at 33%.
In this context, Dr. Sultan Ahmed Al Jaber, Minister of Industry and Advanced Technology, ADNOC’s Managing Director, and CEO stated that, under the guidance of leadership, the UAE continues to solidify its global leadership in AI, which plays a pivotal role in shaping the future of the energy sector and positively impacting all operations, from preventive maintenance to smart networks development. ADNOC is committed to maximizing the benefits derived from AI tools and solutions and integrating them seamlessly into all operational processes to support the company’s transformative initiatives and yield tangible outcomes that enhance operational efficiency, reliability, and sustainability.
He further added that this report highlights the sector’s progress and provides a roadmap for the upcoming phase focusing on investing in skill development, effective solution creation, and aligning policies with innovation, emphasizing the need to accelerate integration between the energy sector and AI for mutual advancement.
The report also confirms a consensus that maximizing value from AI tools and solutions in the energy sector necessitates enhanced coordination and collaboration among industry leaders and increased technological innovation.
Brad Smith, Vice Chair and President of Microsoft, mentioned that meeting the demands of both the AI phase and the energy transition requires building strong partnerships and fostering innovation. Microsoft is closely collaborating with leading companies and executives in the energy sector to revamp their systems, develop human capital skills, and adopt responsible practices in AI.
According to the survey participants, fully realizing the potential of AI faces several challenges, the foremost being ensuring cybersecurity at 49%, followed closely by cost concerns, data quality and consistency issues at 45%, and a lack of specialized skills at 39%.
These challenges are compounded by relatively slow innovation cycles in the sector and the difficulty of integrating AI tools and solutions into legacy systems. As AI technologies see broader adoption, ensuring reliable and sustainable supply becomes a strategic priority, underscoring the close interdependence between the energy and AI sectors, where smart tools improve network performance, reduce energy emission, and enhance efficiency across the energy value chain.
At the same time, the rapid growth of the AI sector is reshaping electricity demand and supplies, necessitating investment in more flexible and smart infrastructure for energy networks and highlighting the need for coordination between the energy and AI sectors to expedite achieving each other’s goals and contribute to building a sustainable, secure, and inclusive future for the energy sector.
The release of the “Enhancing Capabilities 2025” report coincides with the upcoming ENACT Council events in Abu Dhabi, hosted by ADNOC, featuring over 80 government officials and leaders from the energy, finance, technology, and AI sectors to discuss the future of energy systems.