Artificial intelligence holds significant promise for strengthening energy security by predicting equipment failures and helping power grids run more smoothly, according to the authors of the newly released report. However, its effectiveness is currently limited by significant practical hurdles, most notably a severe shortage of workers with the necessary digital skills to implement these systems.
“AI has the potential to be an important tool to enhance energy security and sustainability. For example, AI technologies monitor grids, transformers and other energy equipment to reduce unexpected failures and outages.” Additionally, the report notes that “the lack of digital skills is the single largest barrier to greater AI adoption in the energy sector.”
In simple terms, AI acts like a constant digital watchdog that can spot tiny signs of trouble in power lines or transformers before they lead to a major blackout. By catching these issues early, utility companies can fix them more cheaply and keep the lights on for everyone. However, the technology cannot do the work on its own; energy companies are currently struggling to find enough employees who understand both the energy industry and how to use these complex computer programs effectively.
The report “Key Questions on Energy and AI” was published in April 2026 by the International Energy Agency in Paris, France. Part of the World Energy Outlook Special Report series, the analysis was prepared by a team led by Thomas Spencer and Siddharth Singh under the direction of Laura Cozzi. The publication provides a comprehensive assessment of the rapidly evolving intersection between artificial intelligence, data center power demands, and global energy markets.
