Energy Central

AI and the stress test for utilities

Jan 9, 2026
Paul Quinlan, Director of Energy Research at ScottMadden, shares insights on how AI is reshaping utilities. He discusses the challenges of traditional load forecasting given AI's rise and the implications for national security in the U.S.-China context. Paul highlights practical AI applications, from predictive maintenance to outage forecasting, showing how utilities can optimize operations. He also addresses the evolving workforce needs, emphasizing the importance of AI-enabled skills and innovative training methods for future utility roles.
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INSIGHT

Unprecedented Load Growth Challenge

  • AI-driven load growth has no real historical precedent, making forecasting uniquely hard for utilities.
  • Utilities must learn in real time as data centers and inference locations scale unpredictably.
INSIGHT

AI And National Security Drivers

  • National security competition with China drives U.S. policy across semiconductors, compute, models, and data.
  • Speed to power for data centers became a top priority tied to maintaining AI leadership.
INSIGHT

Custom Models Outperform LLMs For Ops

  • Enterprise value appears strongest for custom models trained on clean, specific operational data.
  • Large general LLMs are less likely to solve discrete industrial problems than tailored small models.
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