ADNOC, Microsoft Powering Possible report: 88% of surveyed leaders say AI is essential to energy transformation

ADNOC and Microsoft on Thursday released the second edition of the Powering Possible report, highlighting the opportunities and challenges of AI adoption in the energy sector.

More than 850 global experts across energy, technology, AI, academia and finance – including leaders from OpenAI, TotalEnergies and the International Energy Agency – contributed to the report, which reveals a significant shift in the AI-energy conversation, transforming from interest and pilots to deployments that demonstrate the AI transformation is underway.

Nearly nine in ten companies surveyed have increased investment in AI and digital infrastructure since 2024, with 73% of companies deploying AI across multiple business functions. Notably, one in five are already using agentic AI to automate complex decision-making, evidence that AI is no longer a future bet but a present-day asset.

The 2025 report data shows that the energy sector is not just powering AI, it is being transformed by it. AI is expected to have its greatest impact on energy distribution and emerging energy solutions, with applications ranging from predictive maintenance and smart grid management to real-time demand forecasting and energy optimisation. 88% of respondents agree that scaling AI is essential to achieving energy transformation. At the same time there is a widespread view that investments in grid modernization (55%) are key to keeping up with AI’s growing demands, followed by energy storage (38%) and advanced materials like high-efficiency conductors (33%).

Dr. Sultan Ahmed Al Jaber, Minister of Industry and Advanced Technology, and ADNOC Managing Director and Group CEO, said, “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.”

The report underscores a growing consensus: unlocking AI’s full value in energy will depend on both industrial leadership and technological innovation working in sync.

Brad Smith, Vice Chair and President, Microsoft, said, “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.”

However, realising AI’s full potential is not without constraints. Cybersecurity has overtaken cost as the top consideration for adoption (49%), followed closely by data quality and consistency (45%) and a shortage of skilled talent (39%). These challenges are compounded by the sector’s slower innovation cycles and the complexity of integrating AI into legacy systems.

As AI adoption continues to scale, access to reliable and sustainable energy is becoming a strategic priority. This underscores a critical truth: AI for energy and energy for AI are now inseparable. AI is helping to optimize grids, reduce energy usage and emissions, and unlock new efficiencies across the energy value chain.

At the same time, AI’s rapid growth is reshaping electricity demand and supply, requiring smarter, faster investment in resilient infrastructure. The challenge, and opportunity, is to align these two forces so that each accelerates the other, delivering a more sustainable, secure, and inclusive energy future.

The Powering Possible 2025 report preludes the ENACT Majlis in Abu Dhabi – where ADNOC will join more than 80 global energy, finance, tech and AI leaders and senior Government officials to discuss the future of energy systems.

WAM