AI-Powered Hyper-Personalization, AMI Analytics and Unlocking New Utility Business Models: Transformation Is Possible Today
In the field of computer science, the concept of ‘garbage in, garbage out’ is so prevalent it has an acronym: GIGO. Although data quality improvements can always be made, the vast majority of utilities are sitting on more than enough quality data to unlock hyper-personalization that can transform how they are viewed by their customers.
By focusing on hyper-personalization first, utilities are ensuring the information feeding into the data lake is not garbage. Utilities can effortlessly own the relationship with their customer while also being emboldened to partner with other brands to enhance offerings on an individualized basis.
At the same time, the data can be used across business divisions to preserve existing revenue streams while also diversifying into new ones, especially as regulatory rules shift. Imagine, in the year 2030, a utility that serves a city with a 100 percent carbon-free electricity goal for 2040 is well on its way to helping the municipality realize that goal five years ahead of schedule. Its customers are routinely offered deals for more efficient goods such as windows and weatherization services, as well as solar-plus storage, and internet discounts with free Disney+ and Hulu subscriptions when they sign up for time-of-use rates that suit not only their lifestyle but also the utility’s needs. In neighborhoods where EVs are popular, customers with those cars are offered online calculators to assess which rate is right for them, while their neighbors, who may be coveting a new Tesla like the one parked next door, can calculate what a similar purchase would cost them over its lifetime.
By owning the relationship with its customer, this utility no longer has to worry about losing.
customer mindshare to other brands. Rather, it knows it can serve as a conduit to connect its customers with the other services they’re seeking as it relates to energy use. Grid planners at this utility have truly embraced an all-of-the-above resource strategy, tapping EVs and behind-the-meter storage, including batteries and hot water heaters, to balance the increasing load of intermittent renewables. Non Wires alternatives are no longer alternatives, just the status quo when it comes to balancing supply and demand. Most of these options are available today for utilities, with more capabilities being added as AI enables increasingly deeper insights.