ISG Says North American Utilities Speed AI Adoption for Grid Modernization

Power and utilities companies across North America are rapidly embracing AI-enabled and data-driven technologies to modernize grid operations, strengthen asset management and respond more effectively to evolving customer needs. According to a new research report released by Information Services Group (ISG), this shift is accelerating as utilities face mounting green energy mandates, rising operational costs and growing pressure to deliver reliable and affordable services.

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As the report highlights, utilities in the region are navigating a complex balancing act. On one hand, they must meet ambitious decarbonization targets; on the other, they must ensure grid reliability and cost stability. As a result, AI and advanced digital platforms are no longer optional but have become essential tools for executing large-scale transformation initiatives efficiently.

“North American utilities are balancing ambitious decarbonization goals with the need to maintain reliability and affordability,” said Korey Barnard, partner, ISG Energy & Utility. “AI and advanced digital platforms are becoming essential for carrying out these complex initiatives at scale.”

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The 2025 ISG Provider Lens Power and Utilities Industry Services and Solutions report for North America reveals that utilities are moving decisively away from reactive models toward predictive and proactive operations. This transition is driven by the rapid growth of distributed energy resources (DERs), electric vehicles and heightened customer expectations for digital-first services. At the same time, utilities are managing decades-long technology transformations while adapting to evolving regulations, increased cybersecurity threats and long-term capital constraints.

Moreover, the report notes that AI, generative AI and machine learning now sit at the core of many utility operations. Utilities are using these technologies for outage and storm forecasting, predictive maintenance and workforce optimization. Consequently, organizations are reducing manual workloads, lowering operating costs and improving overall grid and asset performance.

Digital innovation is also playing a critical role in infrastructure management. Through advanced analytics, utilities are identifying equipment failures earlier, extending asset life and improving restoration times and service-level agreement compliance. In parallel, grid-edge intelligence has emerged as a top priority. Utilities are deploying DER management systems (DERMS), advanced distribution management platforms and virtual power plants to manage bidirectional energy flows and delay costly infrastructure upgrades. These solutions allow utilities to boost capacity and resilience while supporting rooftop solar, battery storage and flexible demand programs.

Customer engagement modernization is gaining momentum as well. Utilities are upgrading customer information systems to support time-based pricing, flexible payment options and personalized energy insights. AI-powered contact centers and self-service tools are improving first-contact resolution while enabling more empathetic interactions during outages, billing disputes and extreme weather events.

“Utilities that align asset, grid and customer modernization efforts around shared data platforms see faster improvements in operations,” said Swadhin Pradhan, principal analyst at ISG Provider Lens Research and lead author of the report. “This integrated approach helps utilities manage reliability, affordability and customer trust simultaneously.”

Additionally, the report explores rising investment in cybersecurity, compliance technologies, digital twins and IoT-driven infrastructure planning. It evaluates 35 providers across four key quadrants, naming Accenture, Capgemini, Cognizant, Deloitte, HCLTech, IBM, Infosys, TCS and Wipro as Leaders across all categories.

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