The energy sector is undergoing a major transformation in line with the increasing demand at the global level, the integration of renewable energy sources and sustainability goals. One of the most important building blocks of this transformation is “digitalization and artificial intelligence integration.”
The energy sector has been experiencing a radical transformation process in recent years with the rapid rise of digitalization and artificial intelligence technologies. Increasing energy demand, combating climate change and sustainability goals have made digital solutions in the sector no longer a choice but a necessity. However, digitalization now makes energy management more flexible, efficient and reliable thanks to technologies such as data analytics, the Internet of Things (IoT), big data and artificial intelligence.
When looking at digitalization and artificial intelligence applications from a global perspective, the titles “Smart Grids and Demand Management”, “Renewable Energy Integration” and “Asset Management and Preventive Maintenance” stand out.
In the United States, Pacific Gas and Electric (PG&E) is optimizing electricity demand and reducing grid outages using AI-powered systems for smart grids. Similarly, in Europe, ENEL has improved energy management with smart meters and AI-based forecasting systems.
In Spain, Iberdrola is optimizing production by using AI-based weather analytics to predict wind and solar energy production. Similarly, Google DeepMind has managed to increase energy production forecasts by 20% by using AI on wind farms in the UK.
Global companies such as Siemens and Schneider Electric are also using AI algorithms in the maintenance processes of energy equipment to predict failures in advance and reduce maintenance costs.
In Turkey, energy distribution companies are instantly monitoring and managing electricity and natural gas consumption data with Automatic Meter Reading Systems (AMRS) and IoT-based applications.
Tüpraş has implemented AI-powered inspection and maintenance processes at its Kırıkkale and İzmit refineries using Boston Dynamics’ Spot robot. In this way, while security in the field increases, workforce efficiency also increases.
When we evaluate the Contributions of Digitalization to the Energy Sector, several topics stand out;
Data-Driven Management
- Instant data can be collected thanks to smart meters, IoT devices and sensor technologies.
- This data plays a critical role in consumption estimates, network optimization and improvement of maintenance processes.
Grid Modernization and Smart Grids
- Thanks to digitalization, energy grids become flexible and able to respond to instant demand.
- This supports renewable energy integration and supply security.
The Role of Artificial Intelligence
Demand Forecasting and Grid Optimization
- Artificial Intelligence algorithms analyze factors such as weather, consumption trends and economic indicators to make short-term and long-term energy demand estimates.
- In this way, it is possible to reduce outages and prevent overload in grid management.
Fault Detection and Preventive Maintenance
- With data from sensors and IoT devices, Artificial Intelligence can predict potential failures or maintenance needs in advance.
- This extends the life of the equipment and reduces maintenance costs.
Renewable Energy Management
- Artificial Intelligence stands out in the management of variable production sources such as solar and wind energy.
- Production estimates can be made by analyzing cloud movements and wind speed, thus providing a more stable energy flow to the grid.
However, of course, as in every structure, there are also some challenges and opportunities. Especially when it comes to the subject of “Data Security and Cyber Security”, the increasing number of connected devices also increases the risk of cyber attacks. Therefore, advanced cyber security solutions and regulations are of vital importance. However, it also brings with it some opportunities; for example, the titles “Workforce Transformation” and “Investment Financing” are important. Because with digitalization, there is a need for continuous training for employees in the sector. On the other hand, although artificial intelligence and digitalization projects require high initial costs, they provide a competitive advantage by reducing costs in the long term.
Digitalization and artificial intelligence integration in the energy sector support both efficiency and sustainability by transforming all processes from energy production to distribution. For industry players, these technologies are no longer just innovations, but a strategic necessity that increases competitiveness and accelerates the energy transformation.
It seems that digitalization and artificial intelligence integration in the energy sector has become an indispensable element in terms of increasing operational efficiency and ensuring sustainability. In the future of the energy sector, digitalization and artificial intelligence will be the key to achieving environmental and economic goals as well as creating a competitive advantage. Examples from Turkey and around the world show that digitalization and artificial intelligence are not only a technology trend in the energy sector, but also a strategic tool that transforms the sector.
However, digitalization and artificial intelligence integration in the energy sector stands out not only as a technological development, but also as a strategic transformation tool that fundamentally transforms the ways the sector does business. Thanks to the benefits it provides in a wide range from smart grids to renewable energy production estimates, from maintenance processes to customer interaction; energy production and consumption are becoming more flexible, sustainable and efficient.
Although challenges such as investment costs, data security and human resources continue, examples applied around the world show that this transformation cannot be stopped. In this context, considering digitalization and artificial intelligence applications as a strategic priority for energy companies is inevitable in terms of gaining competitive advantage and achieving sustainability goals.
In my opinion, while digitalization and artificial intelligence integration in the energy sector offer great opportunities both globally and specifically for Turkey, it is of critical importance to develop holistic strategies for the sector in order to successfully implement these technologies. In this context, updating regulations, establishing data security standards, increasing the digital competencies of human resources and supporting R&D investments stand out as fundamental steps that will accelerate the digital transformation of the sector. Institutions and organizations operating in the energy sector should make long-term investment plans by including digitalization and artificial intelligence among their strategic priorities, which will both increase operational efficiency and strengthen global competitiveness.
Sources
World Economic Forum. (2025). Energy and AI: the power couple that could usher in a net-zero world. https://www.weforum.org/stories/2025/01/energy-ai-net-zero/World Economic Forum
U.S. Department of Energy. (2025). Artificial Intelligence for Energy. https://www.energy.gov/topics/artificial-intelligence-energyThe Department of Energy’s Energy.gov+1The Verge+1
Lincoln International. (2025). 2025 Energy Transition Outlook: Digitalization, Decentralization and the Future of Power. https://www.lincolninternational.com/perspectives/articles/2025-energy-transition-outlook-digitalization-decentralization-and-the-future-of-power/Lincoln International LLC
Waltero. (2025). Utility Asset Management in Turkey 2025: Digitization & IoT. https://waltero.com/resources/utility-asset-management-in-turkey/Waltero
Oil & Gas Journal. (2023). Tüpraş integrates robots to advance digitalization of Turkish refineries. https://www.ogj.com/refining-processing/refining/article/14290798/tupras-integrates-robots-to-advance-digitalization-of-turkish-refineriesOGJ
The Business Research Company. (2025). AI In Energy Market Report 2025, Analysis and Forecast To 2034. https://www.thebusinessresearchcompany.com/report/ai-in-energy-global-market-reportthebusinessresearchcompany.com
DeepMind. (2023). Wind Power Forecasting with Artificial Intelligence. Erişim: https://deepmind.google/discover/blog/ai-wind-energy-forecasting
EPDK (Enerji Piyasası Düzenleme Kurumu). (2023). Türkiye’de OSOS Projeleri ve IoT Uygulamaları Raporu. Ankara: EPDK Yayınları.
Schneider Electric. (2023). AI-based Predictive Maintenance Solutions for Energy Infrastructure. Erişim: https://www.se.com/ww/en/work/solutions/for-business/energy-and-sustainability/
She graduated from Çankaya University Faculty of Law in 2005. In the same year, she completed her master’s degree in Constitutional Law at Çankaya University, Department of Public Law. Until 2011, she worked as an ODY-ÜDY Instructor at Vocational Training Centers affiliated with the Ministry of Transport. For approximately 15 years, she has been working as a legal expert at the Union of Chambers and Commodity Exchanges of Turkey (TOBB). Initially, she was involved in Foreign Trade and International Logistics at TOBB and represented the United Nations for nearly seven years. She is currently serving as a legal expert in the SME Policies Directorate within the TOBB Department of Real Sector R&D and Implementation.
Meanwhile, she is working on completing her doctoral dissertation in Administrative Law at Gazi University, Department of Public Law-Administrative Law. After completing her thesis on TOBB, which is recognized by the Council of Higher Education (YÖK) in Turkey, she plans to publish it as a book.
Additionally, since 2023, she has been writing columns in the London section of “DÜNDAR HUKUK” and “DÜNDAR LEGAL SERVICE CONSULTANCY,” which have established themselves internationally, particularly in the field of energy and renewable energy.