Utilities On Brink Of Ai-Driven Transformation As Cybersecurity Becomes Top Priority

The energy and utilities sector is poised for a seismic shift as nearly half of companies expect artificial intelligence (AI) to play a pivotal role in enhancing collaboration between IT and operational technology (OT) teams. A new report by Cisco, featuring insights from 145 utility industry professionals across 17 countries, highlights the urgent need for better cybersecurity protection and AI readiness.

The sector’s reliance on industrial control systems that automate critical activities such as electricity and natural gas distribution is driving investments in industrial networking, with firms looking to protect and maintain dispersed substations, distribution grids, and distributed energy resources. However, a lack of collaboration between IT and OT teams is hindering the optimization of industrial infrastructure.

The report found that 90% of survey respondents are maintaining or increasing OT expenditure, with AI being seen as a key enabler of better collaboration between IT and OT functions – the second most important measure for overcoming internal obstacles to growth. The primary drivers behind these investments are improving efficiency and increasing automation.

Utilities are also investing in AI-enabled devices and cloud computing to enhance their operations. However, cybersecurity risks are identified as the top external (43%) and internal (34%) obstacles to growth. The primary benefit of IT/OT collaboration is better cybersecurity, which is a top spending priority for almost half (48%) of utility firms over the next two years.

The main industrial infrastructure cybersecurity challenges faced by utilities include vulnerabilities in legacy systems and outdated software (46%), as well as malware or ransomware attacks specifically targeting operational technology (41%). To address these concerns, many companies are seeking major vendor solutions designed and integrated for both types of networks.

However, several challenges to adoption have been identified, including implanting robust cybersecurity measures (39%), standardization (37%), and managing multiple vendors (36%). Lack of understanding of how to design IT/OT collaboration (41%) and siloed organizations (40%) are among the top reasons utility firms struggle to bring these teams into closer alignment.

Cisco is committed to delivering innovative industrial networking solutions to help utilities stay ahead in this rapidly evolving landscape. The company’s strategic partnership with the industry has been instrumental in providing the necessary expertise and support for companies to navigate the complexities of digital transformation.

As New York continues to leverage AI for city services and security, a trend that was highlighted at the recent AI Summit New York, it is clear that utilities are following suit. By embracing AI and industrial networking solutions, these companies can improve their operational efficiency and enhance the resilience and reliability of their critical infrastructure.

Case studies have demonstrated the benefits of integrating AI and IoT platforms in infrastructure maintenance, showcasing reduced costs and streamlined processes. With cybersecurity protection and AI readiness becoming top priorities, the energy and utilities sector is poised for a digital revolution that will have far-reaching implications for the industry as a whole.