The global energy industry is moving decisively from experimentation to execution in artificial intelligence, according to a new KPMG analysis that highlights how operators are reshaping core systems around emerging technologies.
The KPMG Global Tech Report 2026: Energy, Natural Resources and Chemicals finds that energy leaders are increasingly embedding AI into day-to-day operations, while also expanding investment into a wider technology stack that includes XaaS models, edge computing, digital twins and quantum technologies.
The report says organisations are no longer treating AI as a standalone innovation project, but as part of a broader push to modernise operations, improve efficiency and strengthen resilience in an increasingly unpredictable energy landscape.
Cybersecurity and AI remain top priorities, but digital transformation strategies are widening in scope as companies attempt to balance near-term value with long-term technological ambition.
Based on insights from more than 250 senior energy executives, the study highlights tangible gains already being achieved in areas such as production optimisation, predictive maintenance and integrated asset management. However, it also warns that many organisations are struggling to scale these successes beyond pilot programmes.
The central challenge, according to the report, lies not in experimentation but in execution at scale—requiring stronger data foundations, clearer governance frameworks and enterprise-wide implementation models.
As KPMG International’s Global Head for Energy, Natural Resources & Chemicals, Anish De, noted: "There is an exciting path ahead, although many hurdles to overcome. I firmly believe that AI and other emerging technology can benefit all businesses who adopt it with a clear strategy, strong governance, and a human-centric approach that provides the right support for the workforce.
"I encourage energy leaders to keep up the momentum, converting technology investments into sustained operational performance and growing financial returns."
The report also underscores the importance of aligning technology adoption with organisational capability, particularly in data quality talent readiness and governance structures—areas repeatedly identified as barriers to scaling impact.
Shreyansh Upadhyay, Associate Partner, Business Consulting & Chair, AI for Energy at KPMG in India, said: "AI adoption in the energy sector is moving from ambition to execution with a focus on value realisation. Unlocking value will depend on strong data foundations, domain context and enterprise-wide implementation, alongside addressing data, governance, and talent challenges."
Looking ahead, the report frames the sector’s trajectory as a transition into what it calls an “Intelligence Age,” where competitive advantage will depend on how effectively organisations integrate AI and emerging technologies into core operational systems rather than treating them as isolated innovation tools.
The message from the study is clear: momentum is building, but sustained value will depend on discipline, governance and the ability to scale digital transformation beyond isolated success stories.
