Intelligently Traversing the AI Revolution for a Sustainable Future with Santiago Vasquez, Copperleaf [Power Perspectives Conversations at Distributech 2024 Conversations]

In the dynamic landscape of the energy and utility sector, the intersection of technology and innovation has emerged as a pivotal force shaping the industry’s future. This fact was on display recently at Distributech 2024 as industry professionals, thought leaders, and innovators convened to explore the latest trends and developments driving transformation. Among those experts sharing what they have seen in the past year was Santiago Vasquez, Electrical Generation Practice Lead at Copperleaf.

In the Copperleaf booth, as well as at his conference presentation “Combining the Power of Artificial Intelligence and Human Expertise in Asset Management,” Vasquez offered insights into the burgeoning dominance of Artificial Intelligence (AI) and its implications for utility operations. Specifically, Vasquez shared his perspectives on key themes that reverberated across the conference floor: from the imperative of aligning AI initiatives with tangible business outcomes, to the transformative potential of generative AI and human-AI collaboration.

Vasquez’s firsthand experience and reflections offered a nuanced perspective on navigating the complexities of the AI revolution in the utility sector, which is why we were thrilled he could sit down for an exclusive interview with Energy Central. In our conversation, Vasquez offered a comprehensive overview of key insights and takeaways from Distributech 2024. Continue reading, as Vasquez’s expertise and observations offer insights into the ever-evolving landscape of AI integration and its profound implications for the future of utilities.

Unpacking the Ever-Present AI Conversation at Distributech

Reflecting on his experience, Vasquez highlighted the pervasive dominance of Artificial Intelligence (AI) as a central theme. “I joked that having those two letters in an abstract pretty much ensures space to speak at the conference,” he observed. “So yes, AI has been dominating the conversation for a while.” However, amidst the enthusiasm, Vasquez cautioned against the rush to implement AI without careful consideration of its implications. He emphasized the importance of prioritizing business outcomes over adopting trendy technologies, stressing the need for utility companies to approach AI implementation with strategic foresight rather than mere eagerness.

“One of the key conversations with utilities at Distributech was cautioning them not to just look for reasons to implement AI. That’s putting the cart before the horse.” – Santiago Vasquez

Instead, Vasquez reiterated the significance of aligning AI initiatives with concrete business objectives. “You’ve got to define the business outcomes you’re trying to achieve with AI,” Vasquez warned, “And that should ensure if you do implement or integrate AI-related technology, you’re doing it in a meaningful and impactful way.” Utilities must maintain a focus on tangible results rather than be swayed by the allure of cutting-edge technology.

Santiago Vasquez Presenting on AI for Asset Management at Distributech 2024

That said, Vasquez is enthusiastic about what AI can and will bring to the utility sector. In his presentation and throughout the week, he discussed the potential and need for collaboration between humans and AI systems in asset management. Vasquez highlighted the complementary nature of human expertise and AI capabilities, emphasizing the need for a symbiotic relationship. By combining the strengths of both humans and AI, organizations can optimize decision-making processes and achieve superior outcomes. Users must recognize the unique contributions of each component and integrate them effectively to maximize efficiency and effectiveness in asset management practices.

“Effective use of AI is really about combining the great qualities we have as humans with the objective capabilities of AI, because it can process large sets of data, and quickly.” – Santiago Vasquez

Keeping an Eye Out for Best Practices Moving Forward

Vasquez underscored the importance of learning from past mistakes and using AI to drive continuous improvement in asset management practices. By using machine learning algorithms to clean up and analyze historical data and identify patterns, organizations can refine their decision-making processes and mitigate risks more effectively. AI goes beyond surface analytics to ensure the data integrity behind capital planning decisions. Machine learning algorithms can enhance data quality, eliminate time-intensive manual checks, and provide a solid foundation for portfolio optimization.

Vasquez emphasized the role of AI in providing objective insights and augmenting human expertise, leading to more informed and strategic decision making. AI has transformative potential in driving continuous improvement, enhancing the resilience of utility operations, and reshaping asset management practices in the sector.

“Using machine learning and automation, and especially using them to learn from past efforts before you put a new plan forward, is hugely valuable because it allows you to make adjustments to get the best of both worlds. You’re using human expertise, but  minimizing human bias and natural optimism.” – Santiago Vasquez

Looking ahead, Vasquez discussed the future trajectory of AI in asset management, focusing on emerging trends such as generative AI and AI assistants and their transformative potential. He described scenarios where AI assistants could streamline tasks traditionally performed by humans, such as generating reports, and creating presentations and data visualizations.

This shift towards human-guided automation empowers professionals by freeing them from mundane or time-consuming tasks, allowing them to focus on higher-value activities. Generative AI contributes to user-centric enhancements that make technology more accessible and efficient. AI-driven tools fortify usability—simplifying complex tasks and fast-tracking the creation of reports and data visualizations for diverse stakeholder engagement.

Vasquez’s discussion highlighted this democratizing effect of AI, which enables individuals to access advanced technologies and harness these capabilities to enhance productivity and drive innovation. By embracing these advancements, organizations can streamline workflows and unlock new opportunities for innovation and growth.

That said, Vasquez again exercised caution and noted “it’s important to recognize that we can’t expect AI to give us all the answers. And the answers it gives will only be effective and productive when paired with human expertise, guidance, and input. It needs to be a partnership where both parties bring value to the table, so that we create something greater than the sum of our parts.” AI is a tool to enhance our collective capabilities, not replace them.

The slides Vasquez presented on “Combining the Power of Artificial Intelligence and Human Expertise in Asset Management” can be found here.