This summer, extreme weather put America’s electric grid to the test. With temperatures reaching well over 100 degrees across the United States, some regions saw the highest-ever summer peak in electric power demand as Americans cranked up their air conditioning.
These spikes are testing a grid that was built for a different era. More than 70% of the nation’s power lines and transformers are over 25 years old with many nearing the end of their functional life. The Department of Energy has cautioned that this aging infrastructure could have “major consequences on our communities,” increasing the risk of widespread, cascading blackouts. Modernizing the grid is no longer optional, it’s essential.
Fortunately, grid operators have tools to manage grid stress that they didn’t have in the past. To help prevent power outages, utilities should be deploying artificial intelligence tools to analyze power supply and improve efficiency without placing additional pressures on the grid.
This transformation is urgently needed. With renewables now accounting for one-fifth of U.S. electricity, nearly four times their share in 2013, grid operators are tasked with managing a more dynamic and variable energy mix.
At the same time, systems operators are dealing with critical shortages of trained professionals. The employees who remain must analyze vast amounts of incoming data in less time, while keeping service reliable and costs under control.
The result is a system that’s under increasing stress. Research from Texas A&M University shows major power outages are growing by 20 percent each year, lasting longer and impacting more consumers.
In an industry throttled by changing demands and pressures, making small tweaks won’t prevent the worst risks of grid instability over the next 10 years. The sector needs a new model – one that fuses real-time data, machine learning, and automation to anticipate problems before they cascade.
Fortunately, technology already exists to start this shift today. In months, not decades, grid operators can see rapid improvements in grid stability by using AI.
And that shift is already underway. In months, not years, utilities are already seeing the benefits of AI tools designed to augment human decision-making. These tools, often referred to as AI agents, analyze vast amounts of operational data in real time, simulating future conditions, identifying early warning signs, and recommending immediate fixes.
Take Southern California Edison, an electricity provider serving more than 15 million people across California. Using predictive AI systems, they can automatically detect faults with up to 80 percent accuracy before they occur, preventing blackouts.
AI also improves the customer experience. Smart grid technologies like AI agents can help households save up to 15 percent on their energy bills through better demand management and real-time pricing options. Duke Energy, for example, is using AI-enabled cloud tools to reduce residential solar interconnection times from months to under 24 hours, removing barriers to clean energy adoption.
Upgrading our energy grid isn’t just about adding on new technology — it’s about empowering human decisionmakers with the tools they need to keep the lights on at an affordable price.
We are at a rare moment of alignment: the need is urgent, the technology is ready, and the infrastructure to support it is already in place. Utilities that embrace AI-enabled digital transformation will be more resilient, responsive, and future-ready. Those that delay risk falling behind as challenges continue to grow.
The opinions expressed in Fortune.com commentary pieces are solely the views of their authors and do not necessarily reflect the opinions and beliefs of Fortune.
