How Schneider Electric Uses AI to Automate Decarbonisation

At Schneider Electric, AI is viewed as fundamental to transitioning towards cleaner energy.

For many years, the French energy technology business has maintained a competitive edge in innovation and sustainability – two areas it considers intrinsically connected.

According to Olivier Blum, CEO of Schneider Electric: "Energy technology means leading the convergence of electrification, automation and digital intelligence."

Schneider's executive team clearly positions automation, digitalisation and electrification as key weapons in combating climate change, deploying these capabilities to provide smarter, more efficient and more sustainable solutions for customers.

Currently, as AI reaches a point of maturity, Schneider is progressing from standalone automation initiatives towards completely integrated systems.

The US$34.2bn business has developed what it characterises as a convergence strategy, allowing buildings, data centres, factories, infrastructure and grids to function as software-defined ecosystems.

Philippe Rambach, the company's Chief AI Officer, considers AI critical in efforts to address climate change.

"I believe that energy transition, sustainability and carbon reduction will simply not happen without AI," he says. "There is too much data, too much complexity and too many parameters."

AI spans internal operations to customer products

Schneider's AI approach functions across three areas: internal productivity, product augmentation and new value creation.

The business handles around 7.5 million customer service tickets each year, with AI now automatically analysing and routing requests that staff previously managed manually.

Schneider introduced Jo-ChatGPT, an internal tool offering employees secure access to generative AI whilst maintaining data within company infrastructure.

Philippe observes that "the lack of the necessary amount of quality data is one of the reasons why we close some AI use cases, either already at the ideation stage, or later".

The business created an AI Hub in late 2021 to establish governance, develop data science expertise and collaborate with business units to implement AI throughout the organisation.

Energy optimisation demonstrates commercial viability

Schneider's EcoStruxure Microgrid Advisor employs AI-driven analytics to optimise energy buying, selling and consumption decisions.

At Schneider's research facility in Boston, an advanced microgrid featuring 1,379 solar modules produces over 520,000 kilowatt-hours annually, equivalent to removing greenhouse gas emissions from more than 2,400 passenger vehicles.

Philippe says: "With AI we can analyse all variables to formulate an optimal manufacturing set-up that can help to deliver the most sustainable, cost-effective and highest-quality product possible."

The system controls microgrid operations and electric vehicle charging to decrease carbon intensity during peak demand periods.

"The world is changing faster than ever," says Olivier.

"Energy, digital technology and geopolitics are reshaping the systems that power our lives. The challenges are complex, but the opportunities are extraordinary.

"Energy technology means leading the convergence of electrification, automation, and digital intelligence. We invent the technology that makes the new energy landscape possible – enabling buildings, data centres, factories, plants, infrastructure and grids to operate as open, software-defined systems."

Schneider's Innovation Summit

At Schneider's Innovation Summit in Copenhagen on 22-23 October, the business presented its technology approach around accelerating business transformation.

There, Gina Li, VP for Business Development & Inorganic Growth at Schneider Electric, has been reflecting on how to make the technology as sustainable as possible.

"The question of how to power AI with more efficient and sustainable energy is a global priority," she explains. "At Schneider Electric, we are driving innovation to create a world that is more electrified, automated and digitised."

"This unlocks the full value of energy and resources for our customers by simplifying complexity and enabling smarter, more efficient operations across every sector," says Olivier.

Schneider has created separate governance and data offices alongside a Digital Risk Leader role to ensure responsible AI development.

"As a company that has been developing solutions for clients in critical infrastructure, national electrical grids, nuclear plants, hospitals, water treatment utilities and more, we know how important trust is," Philippe explains.