The utility industry is transforming, embracing digital solutions that open new perspectives and growth opportunities. What will the utilities look like in the near future? New technologies sometimes turn out to be even more ambitious than market expectations. The use of AI, cloud computing, efficient utility billing solution, and other trends in utility industry are radically changing them. Moreover, these improvements concern service providers, their consumers, and the community. New technologies help significantly reduce the negative human impact on the environment. Read about the development vectors of the utility industry that are changing the world for the better.
Using Artificial Intelligence (AI)
One of the most pronounced utility industry trends is the active use of Artificial Intelligence. Widespread integration of AI into the work of utilities is already producing amazing results. AI has many unique capabilities, including big data processing, prediction based on explicit and implicit relationships, image recognition, etc. Therefore, the possibilities for its application are wide in all areas of utility companies’ activities. AI is already actively implementing the following functions:
- Prediction of demand for company services depending on various factors;
- Maintaining instant communication with consumers using AI-powered bots;
- Analysis of screenshots from CCTV cameras to identify operational deficiencies;
- Balancing energy networks depending on fluctuations in electricity consumption, and others.
Thanks to monitoring multiple sensors installed at infrastructure facilities of utility companies, AI can significantly improve productivity by instantly processing large amounts of data and making error-free conclusions. It is tireless and does not make mistakes. Since AI is a reliable assistant when performing a wide range of tasks, its usage has become one of the most promising trends in utility industry.
Employing Decentralized Utility Strategies
Monopolists in the utility services market are becoming a thing of the past, even when it comes to such critical services as energy supplies. The peer-to-peer trading model is taking roots more deeply and asserting itself more confidently. Previously, the entire city could buy energy from one large power plant. Thanks to current utilities industry trends, you can buy it from a neighbor who has installed solar panels on their roof and sends excess energy to the grid.
This decentralization of utility services has multiple positive consequences. It helps improve the quality of customer service and reduce prices due to increased competition in the market. In addition, this contributes to energy savings since the proximity of generating capacities to consumers reduces the loss of energy during its transmission along the grid.
Placing a Larger Focus on Decarbonization
Utilities sector trends include irreversible shifts towards following environmentally friendly practices. Decarbonization involves implementing strategies to reduce emissions of toxic gasses into the atmosphere. To achieve this, utility companies must use more environmentally friendly technologies and energy resources. This means there will be an increasing shift away from using gas, coal, and oil in favor of renewable energy sources. Utility companies will be incentivized to comply with decarbonization measures, for example, by making the polluter pay more. Therefore, it will be beneficial for utilities to use environmentally friendly technologies. For example, when heating water, they will use electric pumps rather than gas ones.
Introducing Blockchain
Blockchain technology has shown high efficiency in areas of application where parties do not trust each other enough. Blockchain makes it possible to implement a “smart contract,” thanks to which fraud in mutual settlements becomes impossible. Utility companies benefit greatly from following such utility industry trends as the transition to using blockchain technologies. They serve a huge number of consumers, with some trying to avoid paying for the services of utility companies. In addition, payment for utility services makes transactions more secure, which guarantees that there are no leaks of funds when consumers pay for services.
Renewable Energy Integration
Renewable energy projects using the power of the sun, water, wind, biomass, and other natural factors are receiving more and more attention as solid investment projects. Switching utilities to renewable energy will reduce their operating costs and contribute to addressing environmental concerns.
Customer Experience Trends in Utilities
The entry of more companies into the utility services market requires more innovative approaches to serving customers. Now, they can no longer expect that consumers have no alternatives and will tolerate any quality of service. As a result, new customer-centric business models were developed, which are now among the most important utilities industry trends. These models are designed to take into account all consumers’ needs and find a way to satisfy them. For this aim, companies use the latest technologies and approaches, such as AI chatbots, personal accounts in CRM systems for quick communication with the service provider and monitoring your utility consumption, etc. Here are some of the most current solutions used by utility companies.
Smarter Customer Care
Utility companies provide their services to a large number of consumers. Many of them may have questions, comments, and complaints that require instant response so that there is no outflow of consumers. For this purpose, special “smart customer care” models were developed, which allow providers to retain consumers through the effective work of the support service. They include such principles as multi-channel communication, scalability, relevance, etc.
Data Analysis and 360-Degree View
Consumers leave a lot of information about themselves, but when they must do it repeatedly, they become irritated. To prevent this from happening, companies use a 360-degree view technology, which allows them to consolidate all consumer data and store it in one place.
Chatbots
Chatbots have become an excellent alternative to waiting a long time until an operator of customer support becomes available. Chatbots can serve a large number of clients simultaneously and significantly improve the user experience. That is why chatbots belong to those utility trends that were most actively elaborated by companies.
AI and Self-Care Portals for Consumers
Self-care portals help involve consumers in performing routine tasks more actively and also allow them to monitor their accounts and consumption history. This control helps build trust with the utility service provider. In addition, smart recommendations from AI make the service more personalized and satisfying.
Process Automation
Utility trends benefit both consumers and providers, as demonstrated by automation. Utilities are starting to automate many routine tasks that were previously performed manually. For example, billing automation can significantly reduce the time spent on this regular procedure and eliminate human errors. Consumers who regularly receive accurate bills are more responsible about paying them. They have no doubts about their correctness and, hence, no reason for conflicts with the service provider and choice in favor of a competitor.
In addition, automation greatly facilitates the preparation of reports for internal consumption and submission to regulatory authorities. Such reports will neither require stressful efforts from employees nor contain errors. This means that further planning of companies’ work based on such reports and analytics will be realistic and effective.
Key Takeaways for Utility Companies
Innovative products and services in the utility industry are the best way to beat your competitors. By incorporating such utility trends as AI, Cloud computing, and other digital technologies, you offer a personalized approach and improve the consumer experience. This way, you create a loyal customer base who will not leave for a competitor. In addition, you increase the satisfaction of your company’s employees because you free them from tedious routine tasks. Finally, you significantly save on operational costs, thereby increasing company profits.
Government policies can set up some utilities sector trends. For example, they push for innovation by emphasizing the need for decarbonization and the transition to renewable energy sources. However, failure to comply with green energy principles can make a utility company undesirable for consumers since more and more people support the idea of green energy. Therefore, following new trends for utility companies is often not only a matter of leadership in the industry but also a necessity. Trends show the direction in which the whole world is moving to make life in society and nature more harmonious, fulfilling, and happy.
