Siemens: AI is the Key to Managing Grid Complexity Globally

More than 70% of energy sector executives believe that digital technologies including AI, grid software and smart meters are essential to enabling the energy transition, according to a new global survey by Siemens.

The Infrastructure Transition Monitor 2025, based on responses from 1,400 executives across multiple industries, reveals that resilient energy supply has become the top policy priority for governments, rising from third place in 2023.

The survey findings come as global investment in clean energy has increased from US$1.9tn in 2023 to US$2.2tn in 2025, according to International Energy Agency data cited in the report.

By contrast, investment in fossil fuels has declined slightly over the same period, from US$1.2tn to US$1.1tn.

Respondents reported significant progress on several infrastructure transition goals, with nearly twice as many describing themselves as "mature or advanced" compared to 2023 in areas including national energy independence, large-scale energy storage expansion and renewable energy deployment.

Are regulations hindering progress to grid updates?

However, nearly two-thirds of respondents cite regulatory, political and economic uncertainty as key threats to progress.

Sabine Erlinghagen, CEO of Siemens Grid Software, believes that certain regulatory challenges are hindering the modernisation of power grids around the world.

"Regulation still favours copper over software – capital over operational expenditure," she says.

"Add to that the strict separation of retailers and grid operators, which prevents the grid operator from being close enough to customers to assess demand and flexibility opportunities."

Confidence in national decarbonisation strategies has increased markedly, with 63% of respondents saying their country has an effective plan, up from 47% in 2023.

How companies are managing the complexity of power grids

The growing integration of distributed energy resources such as solar panels and electric vehicles is creating visibility challenges for grid operators, particularly in low-voltage networks.

Dr G Ganesh Das, Chief of Collaboration and Innovation at Tata Power Company, noted the shift in utility operations.

"Demand patterns, per capita consumption and customer expectations have changed drastically," he says.

"That's encouraged utilities to adopt digital tools, optimise supply-demand gaps and predict consumer behaviour. It's a shift from being reactive to proactive."

Three-quarters of energy respondents believe AI is already strengthening infrastructure resilience.

Thomas Kiessling, CTO of Siemens Smart Infrastructure, described the emerging concept of autonomous zones where software responds to real-time inputs.

"If there's no wind but plenty of sun, the system can ramp up EV charging to avoid curtailing solar," Thomas says.

The market context for modern grid technology

Daniela Haldy-Sellmann, SVP at SAP, believes that developing new market structures is of the highest importance.

"We're not just building infrastructure anymore. We're building flexibility markets," she says. "That's the only way to respond fast enough, cost-effectively, across borders."

The survey found that 63% of respondents believe the benefits of autonomous grid systems outweigh the costs, whilst 62% say their region is ready to implement such systems.

However, the fragmentation of platforms, systems and standards remains a significant obstacle to the full-scale implementation of autonomous grids.

Most respondents (62%) believe different parts of the energy system should be managed as a single coordinated whole, requiring greater collaboration between government, utilities and technology providers.