ADNOC and Microsoft have released the second edition of their Powering Possible report, which examines the impact and challenges of artificial intelligence (AI) in the energy sector. The report is based on insights from over 850 experts worldwide, including those from OpenAI, TotalEnergies, and the International Energy Agency.
The findings indicate that nearly 90% of surveyed companies have increased investment in AI and digital infrastructure since 2024. Of these, 73% are deploying AI across multiple business functions, while one in five organizations are already using agentic AI to automate complex decision-making processes.
According to the report, AI is expected to have its greatest effect on energy distribution and emerging solutions. Applications highlighted include predictive maintenance, smart grid management, real-time demand forecasting, and energy optimization. The majority—88%—of respondents believe that scaling AI is essential for achieving transformation within the energy sector.
Investments in grid modernization are seen as critical by 55% of those surveyed to meet growing demands related to AI deployment. Other priorities include expanding energy storage (38%) and adopting advanced materials such as high-efficiency conductors (33%).
His Excellency Dr. Sultan Ahmed Al Jaber, Minister of Industry and Advanced Technology and ADNOC Managing Director and Group CEO stated: “AI is no longer a future promise for the energy sector; it’s delivering real impact today from predictive maintenance to AI-optimized grids. At ADNOC, we’re embedding AI as a core capability across our operations, driving transformation at scale with measurable gains in reliability, efficiency, and sustainability. This report reflects the sector’s progress and provides a roadmap for what comes next — investing in talent, scaling proven solutions, and aligning policy with innovation. The next step is clear: move faster, together.”
Brad Smith, Vice Chair and President of Microsoft added: “Meeting the demands of both the AI era and energy transition will require more than ambition — it will take strong partnerships and innovation. That’s why Microsoft is working closely with energy leaders to reimagine power systems, develop talent, and build responsible AI practices.”
The survey also identified key requirements for large-scale adoption of AI: cybersecurity was cited by 49% as their top concern—surpassing cost considerations—followed by data quality (45%) and a shortage of skilled talent (39%). These issues are made more challenging by slower innovation cycles within the industry as well as difficulties integrating new technologies into existing systems.
As organizations increase their use of AI tools in operations such as grid optimization or emissions reduction efforts, access to reliable sustainable energy has become increasingly important. The report notes that developments in both fields are now closely linked.
With rapid advances in technology affecting electricity demand patterns globally, there is an urgent need for further investment in resilient infrastructure to support this growth.
The Powering Possible 2025 report precedes the ENACT Majlis event in Abu Dhabi where more than 80 leaders from global sectors including government will discuss future directions for energy systems.
The full report can be accessed at https://www.adnoc.ae/en/ai-and-energy-report
