KPMG has unveiled a new report titled “KPMG global tech report: Energy insights” that explores the digital transformation journey of the energy sector at a time of unprecedented challenges and opportunities. The report examines how energy leaders can harness advanced technologies, data capabilities, and strategic foresight to drive the next wave of innovation.
Drawing insights from an extensive survey of 2,450 global technology leaders, including 122 energy technology leaders across 19 countries, the report highlights the energy sector’s unique resilience and appetite for risk. It also uncovers critical areas where increased investments in data and artificial intelligence (AI) are essential to unlock future growth.
The report provides an in-depth analysis of digital transformation trends within the energy industry, revealing how advanced technologies and data-driven insights are reshaping the sector’s future. Amid this pivotal crossroads, KPMG’s report underscores the importance of a unified approach that integrates technology, data, and strategic direction across all business functions. It offers actionable insights to help energy companies navigate complex challenges and capitalize on emerging opportunities, paving the way for the next era of digital transformation.
Commenting on the report, Anish De, Global Head for Energy, Natural Resources & Chemicals (ENRC), KPMG International, said, “As digital technologies and AI reshape the industry, energy leaders have a pivotal opportunity to drive growth through strategic investments in data and advanced tech. With a greater appetite for risk than other sectors, the next wave of digital transformation will depend on smart investments in AI and data. Firms that integrate security effectively and empower their people through strong governance will not only protect digital assets but also gain a competitive edge. The opportunity is immense, but realizing it requires bold, strategic moves.”
“The energy sector’s resilience stems from its long-term vision and strategic discipline. The report shows that energy companies are uniquely equipped to navigate digital transformation because they aren’t afraid to pull the plug on initiatives that don’t deliver value. This pragmatic approach allows them to focus on strategic direction rather than being tied to specific technologies or platforms. As the industry drives multiple transitions, including AI and sustainability, this agility will be crucial for seizing emerging opportunities and maintaining a competitive edge”, said Sushant Rabra, Lead of Global Digital Technology for ENRC, KPMG International
Key Findings from the Report:
- Resilience and Risk Appetite:
The energy sector shows greater resilience and a higher willingness to take risks compared to other industries.
- 25% of energy organizations report that risk aversion rarely slows down leadership decisions, compared to a cross-sector average of 17%.
- The sector is less impacted by market influences such as economic uncertainty, maintaining confidence in technology investments.
- AI Adoption and Maturity:
The energy industry is at the forefront of AI adoption, yet a cautious approach remains.
- 67% of energy businesses are achieving business value from active AI use cases.
- Despite this, many companies are still in the proof-of-concept stage, exploring AI’s potential while managing risks.
- Pushing forward with ERP modernization and cloud migration: energy is the sector that is most likely to say its use of public cloud over the past 12 months has accelerated its adoption of advanced technology, including AI.
- XaaS is driving business value in the energy sector, with 43% of energy executives reporting improved data management and integration from XaaS usage in the past 12 months—6 percentage points above the overall average.
- Investment in Data and AI Capabilities:
To drive the next wave of digital transformation, the report emphasizes the need for increased investment in data capabilities and AI.
- Cybersecurity technology in the energy sector is linked to profit increases of 16% or more.
- Advanced data analytics and strategic foresight are crucial for extracting genuine value from new technologies.
- Companies are encouraged to adopt evidence-based decision-making to navigate the hype around emerging tools while ensuring responsible scaling.
- Strategic Approach to Technology Adoption:
- The sector is most likely to halt digital projects that do not deliver the anticipated value, demonstrating pragmatic decision-making.
- There is a clear focus on strategic direction rather than on specific technologies, enabling continuous performance evaluation and staying ahead of emerging trends.
Please find the full report here
