Adnoc and Microsoft Release Second Edition of 'Empowering Capabilities' Report

ADNOC and Microsoft just released their second annual report showing how AI is moving from experimental to essential in the energy sector. The study surveyed over 850 global experts and found that 9 out of 10 leading energy companies have increased their AI investments since 2024, with nearly three-quarters now using smart technologies across multiple business areas.

The numbers tell a clear story about where the industry is heading. About 73% of surveyed companies are already using AI technologies in various parts of their operations. Even more telling, one in five companies has started using AI agents to automate precise decision-making processes. This isn't future planning anymore - it's happening right now.

The report reveals a two-way relationship between energy and AI that's becoming impossible to ignore. Energy companies provide the power that AI systems need to function, while AI helps energy companies run better through predictive maintenance, smart grid management, real-time demand forecasting, and carbon emission reduction.

Here's where the consensus gets strong: 88% of participants agreed that using AI tools is necessary to support the transformation of energy systems. But the priorities for investment show some interesting splits. About 55% see upgrading electrical grids as the top priority to handle growing demand from AI data centers. Energy storage solutions came second at 38%, followed by developing advanced materials like high-efficiency conductors at 33%.

Dr. Sultan Ahmed Al Jaber, UAE's Minister of Industry and Advanced Technology and ADNOC's CEO, emphasized how the UAE continues building its global leadership in AI. He pointed out that AI is already playing a major role in shaping the energy sector's future, from predictive maintenance to smart grid development.

But the challenges are real and significant. Cybersecurity tops the list of concerns at 49%, followed closely by costs and data quality issues at 45%. The shortage of specialized talent ranks fourth at 39%. These problems get more complex because the energy sector traditionally moves slowly with innovation, and integrating AI into older systems isn't straightforward.

Brad Smith, Microsoft's Vice Chair and President, stressed that meeting both AI and energy transition requirements needs strong partnerships and real innovation, not just ambitions. Microsoft is working closely with energy leaders to reshape their systems, build workforce skills, and adopt responsible AI practices.

The relationship between energy and AI is creating a feedback loop that's reshaping both industries. As AI grows rapidly, it's changing how we think about electricity demand and supply. This means investing in more flexible, smarter grid infrastructure faster than originally planned.

The timing of this report matters. It comes just before the ENACT council meeting in Abu Dhabi, where ADNOC will host over 80 government officials and leaders from energy, finance, technology, and AI sectors to discuss the future of energy systems.

What makes this report different from typical industry studies is its focus on current reality rather than future possibilities. The data shows companies are past the experimental phase and into serious implementation. The question isn't whether AI will transform energy - it's how fast that transformation will happen and whether companies can handle the technical and security challenges that come with it.