Artificial intelligence is rapidly moving from experimentation to everyday use in the global energy industry, with companies beginning to see tangible financial returns from their investments. But the technology’s growing appetite for electricity is also exposing a pressing challenge: whether existing energy infrastructure can keep up.
That is the key finding of the latest Powering Possible 2026 report released by Adnoc, XRG and Microsoft, which surveyed almost 400 senior energy and finance leaders worldwide. The study found that AI is now firmly embedded in boardroom discussions, with 62 per cent of respondents ranking it among their top two corporate priorities, up sharply from 42 per cent a year earlier.
The report signals a shift from pilot programmes to real-world implementation. Nearly nine in ten respondents increased AI spending over the past year, while 63 per cent said returns from existing investments are expected to cover or exceed their costs. Confidence is even higher for future investments, with 89 per cent expecting returns that match or surpass spending.
For the UAE, which has positioned itself at the forefront of both AI and energy transition initiatives, the findings reinforce the need to develop digital and energy infrastructure in parallel.
Dr. Sultan Ahmed Al Jaber, Adnoc Managing Director and Group CEO and Executive Chairman of XRG, said AI was already reshaping industry operations. “AI is creating significant new opportunities for the energy industry to drive greater value, strengthen resilience and improve safety and reliability. At Adnoc, we are embedding AI, robotics and advanced technology across our operations to optimize every barrel, every molecule and every megawatt we produce. As AI scales, energy and technology must advance together.”
The study found that deployment of integrated agentic AI workflows more than doubled over the past year, rising from 15 per cent to 33 per cent. At the same time, organisations operating only small-scale or isolated AI applications fell from 35 per cent to 15 per cent. Among energy companies specifically, 60 per cent are already piloting or deploying robotics and autonomous systems for physical operations, including infrastructure inspection and hazardous tasks.
As AI adoption accelerates, executives are increasingly valuing the technology for its contribution to reliability rather than simply cost savings. Supply stability and reliability emerged as the most frequently cited benefit, identified by 39 per cent of respondents, compared with 26 per cent in 2025. Meanwhile, the proportion highlighting cost reduction as AI’s leading advantage dropped from 19 per cent to 13 per cent.
The shift reflects growing concern about the complexity of global energy systems. Some 86 per cent of leaders surveyed said energy supplies have become harder to predict over the past five years. More than half identified the optimisation of power flows, dispatch and balancing as the area where AI could make the greatest contribution to the energy transition.
Yet the technology is expected to place additional strain on power networks. Nearly three-quarters of respondents believe AI will increase energy consumption by 2030, while only 52 per cent are confident current infrastructure can meet the resulting electricity demand. That figure is unchanged from last year, suggesting concerns about grid capacity remain unresolved.
Grid modernisation and smart-grid technologies topped the list of future investment priorities, cited by 67 per cent of respondents, followed by energy storage at 42 per cent.
Microsoft Vice Chair and President Brad Smith said the success of AI would ultimately depend on more than adoption rates. “As AI becomes embedded in the sectors that underpin the global economy, the measure of progress will not be adoption alone, but whether it delivers lasting value while earning public trust. In the energy sector, where reliability and security are fundamental, that requires strong governance, clear accountability and sustained investment in people and skills.”
The report is being released ahead of the fourth ENACT Majlis and just days before ADIPEC 2026 in Abu Dhabi, where energy, technology and finance leaders are expected to debate how to build a more resilient and integrated energy system for the AI era.
Source: Khaleej Times