As the energy landscape evolves, so do the conversations at industry conferences like Distributech. And what’s particularly compelling to watch is how those conversations evolve from year to year, with the major themes and dominant topics serving as a sort of crystal ball for where the power sector is and in what direction it will go. Take the topic of data analytics and implementation of digital solutions like ADMS, DERMS, or even the hot topic of 2024’s conference: AI. These topics had initially been heavily discussed in a very hyped but not yet tangible manner. Then, in subsequent years, the conversations have become more robust as programs move from lab to pilot to scalable implementation.
In talking with Matt Marrow, Director, Utility Solutions at CGI, he highlighted that digital projects have longer implementation paths from idea to proof of concept to integrated solutions. While these projects are primarily technological, the quality and availability of data these solutions leverage must also be a high priority for them to provide their intended results. In today’s utility landscape of digital solutions, two words dominate the conversation: Data Readiness.
Data Readiness was a central topic of the presentation Marrow gave alongside his CGI colleague, Rick Sheer, at Distributech, entitled “Is Your Data Ready for the Energy Transition? Addressing Data Readiness for the Modern T&D Utility.” It was that topic that Energy Central wanted to hear more about when we sat down with Matt after his presentation for this Power Perspectives Interview.
Shifting Perspectives on Data Readiness
As noted, a significant shift observed at Distributech 2024 was the evolving perspective on data readiness among utilities. Marrow notes that while previous conversations focused on the urgency of digital transformation, the discussion today focuses more on a prudent approach: to take their time to get it right.
"Amidst the buzz of digital transformation, utilities are realizing the critical importance of data readiness. Starting with good data lays the foundation for successful modernization efforts, saving significant costs in the long run."
That means utilities must embrace a data-driven approach to implementing digital solutions that address their legacy data challenges. Marrow emphasizes the need for utilities to address underlying data issues to avoid difficulties during modernization efforts, as getting this right on the first go around is much more effective, efficient, and beneficial than trying to play catch up after the fact. When it comes to data, the phrase “garbage in leads to garbage out” was heard countless times on the Distributech 2024 floor, so Marrow and his CGI colleagues emphasized how that’s not just a saying but is something that needs to be addressed as part of utility digitalization.
Matt Marrow Presenting at DistribuTECH 2024: “Is Your Data Ready for the Energy Transition? Addressing Data Readiness for the Modern T&D Utility”
AI: Balancing Hype with Practical Applications
For better or worse, artificial intelligence appeared impossible to avoid when listening to any presentation at Distributech 2024, from the keynote to the individual educational sessions to the general informal conversations during the company happy hours. While 2024 was not the first year that AI was showcased as an exciting new tool that utility leaders should consider, the past year had seen a publicly recognized rise in tools like generative AI or text-to-graphic AI tools, demonstrating that the hype was at an all-time high.
Marrow agreed, noting, "The AI hype cycle is in full swing, but utilities must approach adoption cautiously. It's not just about embracing the latest technology but ensuring that AI solutions responsibly align with utility goals and effectively improve capabilities."
While the forward-looking discussions of what may be possible with these AI tools in 1 year, three years, or five years were exciting and worthy of debate, Marrow aims to provide the perspective of how and where these tools are most effectively implemented. Of course, this perspective is not to throw cold water on the exciting possibilities, and in fact, the goals are the opposite: to ensure due diligence is done now so that practical utility applications are integrated at the ground floor. Marrow highlighted the diverse opinions among utilities and associated stakeholders, emphasizing the need for a balanced approach to AI adoption. While acknowledging AI's buzz, he underscores the importance of aligning AI initiatives with utility objectives and capabilities. Doing so represents responsible integration and will produce desirable long-term results.
Along with taking that long-term view of AI, Marrow also emphasizes that now is the time for utilities to thoroughly explore related ethical considerations and governance frameworks for AI tools. Marrow acknowledges AI adoption's moral implications, particularly in critical infrastructure sectors like utilities. While a chatbot for an online retail function that falls short of customer expectations can lead to user frustration, the failure of an AI tool tied to the critical infrastructure of utilities could instead be disastrous. The level of tolerance for error by the utility sector is as close to zero as any other industry, so Marrow emphasized the need for robust governance structures to ensure transparency, accountability, and reliability in AI-driven decision-making processes.
"As utilities delve into AI adoption, ethical considerations loom large. Establishing governance frameworks prioritizing transparency and accountability is essential to maintain the integrity of AI-driven decision-making."
Agile Utilities: Navigating Change in a Traditional Sector
Another recurring challenge discussed at the Distributech conference was the need for utilities to become more agile: in trying new things, in responding to unexpected events, and in charting the future. The expanding universe of rapid technological advancements represents the core of this need for agility.
As Marrow noted, “Utilities are facing unprecedented change, and agility is key to navigating this evolving landscape.” When pressed on what that agility looks like in practice, he continued that it comes from overarching strategic management: “By embracing hybrid project management methodologies, utilities can adapt to change while ensuring reliability and safety."
Through it all, Marrow emphasized the importance of strong leadership in driving organizational agility and fostering a culture of continuous improvement. Gone are the days of the utility industry having a slow-to-move reputation, and here is the era of constant evaluation, testing, and integration. He suggested a hybrid approach to project management and execution that combines agile methodologies with traditional practices to accommodate the unique needs of individual utilities. While there may not be a one-size-fits-all solution to apply to all utilities, the core principles of agility must become ubiquitous in the industry.
Matt Marrow Fielding Questions at the CGI Booth at Distributech
Directing the Conversation into the Future
Throughout the conference, Distributech 2024 provided a critical platform for industry stakeholders to engage in essential discussions on the future of utilities. Some of the buzzier headlines were understandably on the exciting, previously impossible tasks that digital tools can now offer to the utility sector. And for an industry constantly seeking out where to squeeze out additional optimization to benefit its customers in lower prices, increased reliability, and overall satisfaction, AI and the rest of the suite of digital tools extolled at Distributech 2024 loom large.
Marrow stands with his utility peers in anticipating these great new ventures on the horizon, but his message remains one of pragmatism about how we get from here to there. Building data readiness and ensuring high-quality data systems and organizational agility today only make those future possibilities all the more impactful when they do come. As utilities navigate this shifting landscape, insights from thought leaders like Matt Marrow offer valuable guidance for charting a path forward in an era of rapid change.
Asked what themes he anticipates will be dominant in Distributech 3-5 years from now, Marrow laughs and suggests, “Well, I just hope it’s not still about the future of AI. I truly hope we’re actually doing these things at that point!”