• Home
  • Latest
  • Fortune 500
  • Finance
  • Tech
  • Leadership
  • Lifestyle
  • Rankings
  • Multimedia

Trendingnow

1

Ex-PepsiCo CEO Indra Nooyi worked from midnight until 5 a.m. as a receptionist to pay for her Yale degree—and she says ‘respect went up’ because of it

2

Shark Tank's Kevin O'Leary says if he were 25 today, he'd chase these two booming opportunities in the world of AI

3

China’s birth rate just hit its lowest point since 1949—and Trip.com cofounder James Liang thinks that’s a threat to innovation

1

Ex-PepsiCo CEO Indra Nooyi worked from midnight until 5 a.m. as a receptionist to pay for her Yale degree—and she says ‘respect went up’ because of it

2

Shark Tank's Kevin O'Leary says if he were 25 today, he'd chase these two booming opportunities in the world of AI

3

China’s birth rate just hit its lowest point since 1949—and Trip.com cofounder James Liang thinks that’s a threat to innovation
CommentaryEnergy Industry

AWS head of Energy & Utilities: AI is the grid’s turning point—and its salvation

By
Howard Gefen
Howard Gefen
Down Arrow Button Icon
By
Howard Gefen
Howard Gefen
Down Arrow Button Icon
September 27, 2025, 8:00 AM ET
Howard Gefen is General Manager, Energy and Utilities at Amazon Web Services.
Howard Gefen
Amazon Web Services' Howard Gefen.Amazon
Add Fortune on Google for similar content.

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.

Recommended Video

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.

About the Author
By Howard Gefen
See full bioRight Arrow Button Icon
Add Fortune on Google for similar content.

Latest in Commentary

Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025

Most Popular

Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Fortune Secondary Logo
Rankings
  • 100 Best Companies
  • Fortune 500
  • Global 500
  • Fortune 500 Europe
  • Most Powerful Women
  • World's Most Admired Companies
  • See All Rankings
  • Lists Calendar
Sections
  • Finance
  • Fortune Crypto
  • Features
  • Leadership
  • Health
  • Commentary
  • Success
  • Retail
  • Mpw
  • Tech
  • Lifestyle
  • CEO Initiative
  • Asia
  • Politics
  • Conferences
  • Europe
  • Newsletters
  • Personal Finance
  • Environment
  • Magazine
  • Education
Customer Support
  • Frequently Asked Questions
  • Customer Service Portal
  • Privacy Policy
  • Terms Of Use
  • Single Issues For Purchase
  • International Print
Commercial Services
  • Advertising
  • Fortune Brand Studio
  • Fortune Analytics
  • Fortune Conferences
  • Business Development
  • Group Subscriptions
About Us
  • About Us
  • Press Center
  • Work At Fortune
  • Terms And Conditions
  • Site Map
  • About Us
  • Press Center
  • Work At Fortune
  • Terms And Conditions
  • Site Map
  • Facebook icon
  • Twitter icon
  • LinkedIn icon
  • Instagram icon
  • Pinterest icon

Latest in Commentary

heat
Commentaryclimate change
McKinsey Global Institute: Climate planning has prioritized floods. Heat demands equal attention
By Sylvain Johansson, Mekala Krishnan, Kanmani Chockalingam and Annabel FarrJuly 7, 2026
21 hours ago
j
CommentaryEducation
AI didn’t break higher education—It exposed the credential trap
By Jason BenedictJuly 7, 2026
22 hours ago
e
CommentaryEntrepreneurship
I skipped college and founded a company at 18. Several exits later, this is what I learned
By Eric FranciaJuly 7, 2026
23 hours ago
mw
Commentaryregulation
Virtual Assets Regulatory Authority CEO: Finance’s AI future moves at the speed of its slowest regulator
By Matthew WhiteJuly 7, 2026
1 day ago
t
CommentaryParenting
Babylist CEO: The Trump Accounts gold rush is overlooking moms
By Natalie GordonJuly 6, 2026
2 days ago
e
CommentaryCorporate Governance
SpaceX’s supervoting shares put a decades-old governance debate back in play
By Jeffrey Sonnenfeld and Steven TianJuly 6, 2026
2 days ago

Most Popular

Ex-PepsiCo CEO Indra Nooyi worked from midnight until 5 a.m. as a receptionist to pay for her Yale degree—and she says ‘respect went up’ because of it
Success
Ex-PepsiCo CEO Indra Nooyi worked from midnight until 5 a.m. as a receptionist to pay for her Yale degree—and she says ‘respect went up’ because of it
By Preston ForeJuly 6, 2026
2 days ago
Shark Tank's Kevin O'Leary says if he were 25 today, he'd chase these two booming opportunities in the world of AI
AI
Shark Tank's Kevin O'Leary says if he were 25 today, he'd chase these two booming opportunities in the world of AI
By Marco Quiroz-GutierrezJuly 5, 2026
3 days ago
China’s birth rate just hit its lowest point since 1949—and Trip.com cofounder James Liang thinks that’s a threat to innovation
Asia
China’s birth rate just hit its lowest point since 1949—and Trip.com cofounder James Liang thinks that’s a threat to innovation
By Nicholas GordonJuly 7, 2026
1 day ago
Current price of oil as of July 7, 2026
Personal Finance
Current price of oil as of July 7, 2026
By Joseph HostetlerJuly 7, 2026
18 hours ago
Despite a $220 million net worth, Rafael Nadal says he won't retire because he hates waking up to no plans—so he's opened a chain of hotels instead
Success
Despite a $220 million net worth, Rafael Nadal says he won't retire because he hates waking up to no plans—so he's opened a chain of hotels instead
By Orianna Rosa RoyleJuly 7, 2026
1 day ago
Even as Elon Musk calls philanthropy ‘very hard,’ everyday Americans gave a record $617 billion—despite feeling the squeeze over the cost of living
Success
Even as Elon Musk calls philanthropy ‘very hard,’ everyday Americans gave a record $617 billion—despite feeling the squeeze over the cost of living
By Preston ForeJuly 4, 2026
4 days ago

© 2026 Fortune Media IP Limited. All Rights Reserved. Use of this site constitutes acceptance of our Terms of Use and Privacy Policy | CA Notice at Collection and Privacy Notice | Do Not Sell/Share My Personal Information
FORTUNE is a trademark of Fortune Media IP Limited, registered in the U.S. and other countries. FORTUNE may receive compensation for some links to products and services on this website. Offers may be subject to change without notice.