Energy Sector Trails Peers In AI Prioritisation, But Adoption Set To Accelerate: KPMG

The energy sector is lagging other industries in prioritising artificial intelligence investments, though adoption is expected to accelerate as companies move beyond pilot projects, according to a report by KPMG.

In its report “AI’s Dual Promise”, KPMG said 69% of energy executives identified AI as a technology investment priority, below the cross-industry average of 77%.

Within the energy sector, oil and gas companies are leading AI adoption, with 79% naming it a priority, followed by power and utilities at 77% and chemicals at 70%. Mining firms stand at 59%, while renewable energy companies trail at 53%, largely due to competing operational technology priorities, the report said.

Despite the slower uptake, executives expect rapid progress over the next year. Companies still experimenting with AI without a clear return on investment are projected to fall to 2% from 29% as organisations scale deployments across their operations.

More than 60% of energy companies are already hiring AI specialists, while a similar share are strengthening cross-functional collaboration to support safe and effective implementation.

The report also highlighted a growing need for workforce upskilling. About 96% of energy executives said managing AI-driven systems or agents will become an essential skill within five years, signalling a shift toward hybrid operating models that combine human expertise with automated decision-making.

Energy companies are therefore prioritising improvements in data quality and management, with executives identifying strong data foundations as a critical factor for successful technology strategies.

AI tied to energy transition efforts 

At the same time, companies continue to focus on sustainability and the transition to net zero, the report said.

The shift toward cleaner energy sources remains a major strategic priority, particularly for power and utilities companies. AI-enabled tools are expected to support more flexible, real-time grid management and help integrate renewable energy and behind-the-meter services, allowing consumers greater control over how and when they use electricity.