AI is powering the future of energy - But only for businesses bold enough to modernise

AI is actively powering the power sector. From predictive maintenance to smarter energy distribution, artificial intelligence is reshaping how energy firms operate, balance demand, and plan for the future.

According to Grand View Research, the global AI-in-energy market is forecast to reach $196.6 billion by 2030. With UK electricity demand projected by the National Grid to double by 2050, driven by the rapid electrification of transport and heating, the stakes couldn’t be higher.

Sector leaders are already setting the standard. Octopus Energy’s Kraken AI platform now manages energy for more than 54 million customer accounts worldwide, and European utilities are repurposing old power plants into AI-powered data centres to improve flexibility and resilience.

But while the race is on, not every organisation is positioned to take part. Many UK utilities still rely on legacy bespoke systems, originally built for a different operating environment. Without targeted modernisation, these systems lack the data handling, scalability, and interoperability needed to enable AI adoption, leaving huge efficiency gains locked away.

David Ritchie, Co-founder of bespoke software consultancy Propel Tech, explains: “AI can optimise everything from load forecasting to asset management, but it won’t bolt onto outdated infrastructure. To unlock its potential, utilities need modernised, AI-ready platforms that integrate with their unique data and workflows. Otherwise, the risk is not just falling behind on innovation, but falling behind on resilience and regulatory compliance.”

Modernisation is more than an efficiency exercise. With net zero targets looming, renewables adding complexity to the grid, and cyber security risks on the rise, utilities need real-time insights to manage volatility, protect critical infrastructure, and satisfy evolving regulatory demands. Legacy systems, while stable, often lack the flexibility to respond at this pace.

Andy Brown, Co-founder of Propel Tech, adds: “We’re seeing forward-thinking firms treat modernisation as a prerequisite for AI. That means strengthening existing platforms, embedding better data pipelines, and building the foundations for automation. It’s not about ripping everything out; it’s about making current systems scalable, secure, and ready for the next era of energy management.”

Recent research from Propel Tech underlines the urgency. In a proprietary survey, 40% of utilities executives said bespoke software modernisation is critical to meeting data and security needs, while 54% expressed concern that AI could do more harm than good without the right controls.

The message is clear: those who act now to modernise their systems will be best placed to deliver reliable, resilient, and sustainable energy in a sector facing unprecedented demand.

Free AI readiness audit for utilities

To help energy and utilities companies prepare, Propel Tech is offering a free, no-obligation Software Health Check. The service assesses the readiness of existing systems for AI adoption, highlighting where modernisation can unlock efficiencies, reduce costs, and create the conditions for innovation without disrupting live operations.