Lessons to be learned from UAE’s AI-Energy Leadership

Global demand for energy is considerable and expanding, which is a trend that needs to be balanced by calls for cleaner and more sustainable energy sources.

Digitisation generally, and artificial intelligence (AI) in particular, is playing a major role in creating a new paradigm in the industry where lower cost energy can be produced, while environmental, sustainability, and operational factors can all be uplifted, leading to an energy sector that is fit-for-purpose for the modern era.

Progressive energy companies around the world are investing in AI-based innovations to not only optimise operations and reduce OPEX, but also to drive down CAPEX, catalyse sustainability efforts, and even accelerate energy transition agendas.

The UAE stands as an example globally, of how the energy sector itself, can invest in and find solutions to managing its future development, relevance, impact, and evolution. At a national level, AI has been identified as the driving changemaker to transform the sector in the years and decades to come, and the use of the technology is already accelerating in use cases and impact.

The results of this investment in technology are already starting to speak volumes. Abu Dhabi National Oil Company (ADNOC), which is on a mission to become the most AI-enabled energy company in the world, reported that AI solutions across its full value chain generated US$500 million in value in 2023 alone.

This monumental achievement is part of a multi-year program to accelerate the deployment of AI solutions across ADNOC’s vast businesses, from field operations to smarter and quicker corporate decision-making, which has also resulted in the abatement of up to 1 million tons of carbon dioxide (CO2) emissions between 2022 and 2023, the equivalent of removing approximately 200,000 gasoline- powered cars from the road.

The UAE continues to lead the way in the adoption of AI-driven solutions across the energy value chain, leveraging AI to transform both traditional and renewable energy sectors, significantly enhancing operational efficiency, sustainability, and the pace of the energy transition, which feeds back into supporting AI’s veracious appetite for energy. Incorporating next-generation technology such as AI with legacy systems, overcoming expensive set-up costs, and managing new emissions profiles will all need to be navigated and overcome.

Throughout the energy sector, AI- powered predictive maintenance tools are being employed to monitor and forecast equipment health, reduce unexpected failures, and optimise production processes, for example. AIQ already has products in commercial use driving gains from autonomous operations, while smart grid initiatives are using AI to balance demand and supply in real- time, ensuring efficient distribution and reducing waste.

In the UAE, the collaboration between the public and private sectors has been instrumental in scaling AI-driven solutions. This successful model can be replicated by forming cross-sector alliances that combine technological expertise with industry-specific knowledge.

Equally important is the need for significant investment in AI infrastructure. Similar to the UAE’s prioritisation of investment in digital infrastructure to support the deployment of AI across the energy value chain, industries and governments aiming to harness AI should focus on upgrading digital platforms, ensuring robust data management, and integrating AI into operational systems.

Take for example the recent announcement by BlackRock, Global Infrastructure Partners (GIP), Microsoft, and MGX, of the Global AI Infrastructure Investment Partnership (GAIIP) to make investments in new and expanded data centres to meet growing demand for computing power, as well as energy infrastructure to create new sources of power for these facilities. These infrastructure investments will be chiefly in the United States fuelling AI innovation and economic growth, and the remainder will be invested in U.S. partner countries.

Supportive policies also play a crucial role in AI integration. The UAE’s forward-thinking regulatory framework has demonstrated the impact that supportive legislation plays in promoting innovation while addressing challenges like data privacy and cybersecurity, creating an environment where AI can safely thrive, providing other governments with successful models they can adopt.

Take for example the collaboration between G42 and Nvidia to develop AI solutions aimed at enhancing the accuracy of weather forecasting globally. The collaboration will drive advanced climate solutions through Nvidia’s Earth-2 platform, which can make climate and weather predictions with interactive, AI-augmented, high-resolution simulation.

Lastly, the energy transformation driven by AI requires a skilled workforce capable of managing and optimising AI technologies. Creating programmes and incentives to upskill the workforce and produce graduates with the requisite training and experience can ensure that a country has a steady stream of professionals able to manage and lead AI integration.

Industries globally should prioritise reskilling programmes to facilitate AI integration and maximise its benefits, while governments can take inspiration from the AI-focused higher education that the UAE is pioneering through its Mohammed bin Zayed University of Artificial Intelligence and training provided by its National Programme for Artificial Intelligence.