Generative AI Radar: Energy, Mining and Utilities

By Dylan Cosper

09 Jan, 2025
7 min read

Insights

Generative AI spending by energy, mining, and utilities companies expected to grow to $1 billion in 2024.
Nearly 50% of energy, mining, and utilities firms have implemented or are implementing generative AI.
One-third of energy, mining, and utilities firms expect generative AI to increase operational efficiency and automation.
C-suite buy-in and lack of investment hold back are bigger challenges for energy, mining, and utilities than the overall trend.
72% the energy and mining industries are positive their workforce is ready to adopt generative AI.
More energy, mining, and utilities CIOs sponsor generative AI than the overall trend.
46% of energy, mining, and utilities companies report the CIOs are the primary policy maker, nearly double the overall trend (25%).

Generative AI is still new, yet enterprises are already exploring its transformative potential.

This year will bring further developments in generative AI as organizations familiarize themselves with this transformative technology. So where are they now?

Through this study we aimed to uncover how companies use generative AI, how much they spend on it, how it’s being rolled out, and where it makes an impact. We looked at 3,000 companies across 12 industries:

Automotive
Consumer packaged goods
Energy, mining, and utilities
Financial services
Healthcare
High tech
Insurance
Life sciences
Logistics and supply chain
Manufacturing
Retail and hospitality
Telecommunications

Many companies told us they are already spending significant sums of money — and are set to spend more this year. However, this pattern isn’t the same across sectors. In this data book we highlight how energy, mining and utilities compares with the rest of the pack. All data used in this data book are from Generative AI Radar North America, Europe, and APAC.

Generative AI spending

Energy, mining and utilities generative AI spending set to grow in 2024

Energy, mining, and utilities spending growth is middling — Generative AI spending by energy, mining, and utilities companies expected to grow to $1 billion in 2024.

Energy, mining, and utilities generative AI spending

Expected generative AI spending growth in 2024 by industry

Generative AI adoption

Nearly 50% of energy, mining, and utilities firms have implemented or are implementing generative AI

Only 17% of energy, mining, and utilities has not started any generative AI initiatives — Most of these firms have started their generative AI journey. 10% have already created business value with their initiatives.

Generative AI adoption by proportion of respondents

Automation and product development drive generative AI optimism

One-third of energy, mining, and utilities firms expect generative AI to increase operational efficiency and automation

Energy, mining and utilities companies are more skeptical of improved content and creativity — Only 9% energy, mining, and utilities expect generative AI to have a positive impact on content generation and creativity, significantly less than the overall trend (19%).

Where companies expect generative AI to have the most positive impact

Obstacles to generative AI adoption

Data usability and privacy are biggest obstacles for energy, mining, and utilities

Unlike the overall trend, c-suite buy-in and lack of investment hold back energy, mining, and utilities generative AI adoption — 18% of energy, mining, and utilities firms reported c-suite buy-in was a challenge, much higher than the overall trend (6%). Another 16% reported that lack of investment as a challenge to generative AI adoption.

Challenges in implementing generative AI

Workforce generative AI readiness

The energy, mining, and utilities workforces are more prepared for generative AI than the overall trend

Energy, mining, and utilities firms have high confidence in their workforces’ readiness for generative AI — 72% the energy and mining industries are positive their workforce is ready to adopt generative AI, higher than the overall trend.

Sentiment on workforce readiness to adopt generative AI by proportion of respondents

Primary sponsor of generative AI initiatives

Chief information officers lead the charge for generative AI

More energy, mining, and utilities chief information officers (CIOs) sponsor generative AI than the overall trend — 43% of energy, mining, and utilities reported the CIO is the primary sponsor of the generative AI initiatives, significantly higher than the overall trend.

Primary sponsor of generative AI initiatives by proportion of respondents

Primary generative AI policy maker

Policy creation comes from IT

The CIO takes point on generative AI policy — 46% of energy companies report the CIOs are the primary policy maker, nearly double the overall trend (25%). Significantly less energy, mining, and utilities companies reported the board of directors as the primary policy maker than the overall trend.