Artificial intelligence is helping utility companies improve customer service and better manage power grids.
According to a recent JLL report, “Optimizing Beyond the Grid: How AI is Revolutionizing Utility Facilities and Workplaces,” the technology is doing a whole lot more than that.
“Leveraging AI in their real estate functions can help utilities cut costs, advance sustainability and attract and retain talent,” the report said. “By harnessing the capabilities of generative AI, utilities can transform their owned and leased real estate into self-optimizing assets that drive business performance.”
Today’s utility companies are dealing with increasing electricity demand, in part due to expanding data centers. A Gartner forecast said that 40% of power and utility organizations will deploy AI-driven operators in control rooms by 2027.
Because utilities are about more than power grids (their real estate portfolios include corporate offices, operations centers, warehouses, maintenance buildings and substations), the report said that consolidating all facility and asset data into centralized platforms gives AI the information it needs to identify inefficiencies and recommend improvements.
“Utilities are leveraging AI to eliminate fragmentation and turn their facilities into intelligent portfolios,” said Emily Roman, executive director of technology advisory for industrials at JLL.
Reliance on Prevention
The report said that predictive maintenance is one of AI’s more important tasks. The technology puts teams into a proactive stance, as it can continuously monitor equipment condition and catch potential errors before they become huge problems. Teams can focus on maintenance rather than reacting to breakdowns.
Although predictive maintenance requires upfront investment, JLL estimates the strategy can generate returns of up to 545% over time through lower capital replacement costs, improved equipment efficiency and reduced energy consumption.
Real Estate Planning
Agentic AI is also becoming useful for lease analysis, occupancy trends and portfolio data, all of which support informed decision-making.
At the same time, AI-powered workplace management platforms analyze information from occupancy sensors, security badge swipes and room reservation systems to understand how office space is actually being used.
Such insights can help companies determine whether to reduce office space, redesign underused buildings, create more flexible work environments or invest in employee amenities. At the same time, the information can lead to lower operational costs by adjusting lighting, HVAC systems and cleaning schedules based on actual building usage rather than fixed schedules.
Edward Connolly, managing director of integrated portfolio services at JLL, explained that utilities have a strong financial incentive to optimize office energy use because many corporate real estate expenses are not recoverable through utility rates.
More than Grid Ops
Much of the industry’s attention has focused on AI’s role in grid operations. However, JLL said that the technology can accomplish so much more, such as improving operations, lowering costs and better positioning portfolios for growth.
“Utilities that make the most of AI in their facilities and workplaces can transform their properties into intelligent, optimized portfolios, creating a powerful competitive advantage,” the report said.
