CERAWEEK: AI's greatest value for energy industry to be in production and operations, Accenture CEO says

The most exciting real value for artificial intelligence in the energy industry is going to be found in production and operations, the CEO of information technology services and consulting firm Accenture, said March 18.

In exploration, the industry is already seeing AI being done with seismic processing, Julie Sweet, also Accenture's chair, said at the CERAWeek energy conference by S&P Global in Houston.

"In capital projects, when you think about the energy transition and the trillions of dollars that are going to be spent the power of generative AI, in particular, to be able to cut time off of capital projects and have the more accurate and less cost overruns is massive value," Sweet said.

All of this requires a data foundation that's accessible, she added.

"There is a huge opportunity to bend the cost curve at a time when we all are going to have to contribute to how do you get to the transition," Sweet said. "It's a multipronged answer -- government's very important, new technology breakthroughs -- but there are substantial ways that AI can contribute and really set new performance frontiers that we all need to, as an industry, embrace and even work together to achieve because this is not simply about being successful as an individual company, but really, this industry is absolutely critical to security to prosperity of the world. I think there's a lot of opportunities to work together."

Low-carbon solutions

"The focus on low-carbon solutions is really exciting," Sweet said. "In the US, the [Inflation Reduction Act] was a huge unlock because we've got to find ways to make low-carbon solutions affordable. And as we get to being able to have market forces drive some of these solutions, you need government incentives. What's exciting is the technology is there."

The country is starting to see partnerships emerge to fund low-carbon solutions.

While there are a lot of things to navigate, there's a huge opportunity to do well to the world to create new opportunities, Sweet said.

"We need the energy industry across the industry to be dreaming big, to be a little scared, because it's going to be hard," she said. "But without those streams, we will not achieve what is needed for prosperity around the world."

This is one of the most exciting times to lead companies, she added.

"There is a huge opportunity to use technology for good," Sweet said. "It is going to be at the core of what the energy companies do -- finding low carbon solutions, finding the energy that's needed, the opportunity to help the Global South. These are all things that there are breakthroughs now that make it really impossible. And I wouldn't want to lead at any other time."

Massive mind shift

A massive mind shift has taken place that understands that AI will be critical, and with AI already permeating how companies operate, the question now turns to generative AI, Sweet said, meaning AI systems capable of creating text and images.

"AI in every industry literally has the ability to transform every part of the enterprise, including the core," Sweet said. "So, it's fundamentally different than any technology that's come before it. And in fact, there isn't another technology that I could incredibly stand before every CEO in every industry and say that every part of the enterprise can be reinvented with it.

"With Accenture itself and how we operate, we have a very simple rule -- if we do it, will it be something that could be replicated at our clients so that we can become a credential and we can become kind of a testing area for that. We are very focused because we have a long list ... but it's actually difficult to scale. And so you really need to be careful about how you approach it because many of our clients are spending a lot of money, and they don't have a path to real business value."

Simple formula

It's a simple formula to reinvent a company in the digital transformation, Sweet said. It starts with having a digital core, including being in the cloud, and having the right security and the right data backbone so applications can take advantage of the digital core.

"Most companies today are not all the way in the cloud," Sweet said. "They haven't modernized their applications and, most specifically, the data foundation. So, 90% of the opportunity to create a data and AI foundation is still ahead."

In addition to needing having a digital core, companies need an AI rotation to change their processes, create new ways of working, including having the right skills and building a responsible AI compliance program, she added. A talent rotation completes the formula, Sweet said about how having a plan on how AI will change individuals workflow and skill sets.

A digital core, AI rotation and talent rotation will enable a company to find more productivity and new sources of growth, Sweet said.