Checking In with Energy Central Experts: Deepak Parameswaran, Markets Leader and Sector Head at Wipro – [an Energy Central Power Perspectives™ Expert Interview]

Keep reading to learn more about Deepak’s expert take on the future of AI, workforce transformation, and regulatory adaptation in the energy sector.

Matt Chester: Thanks for allowing us to catch up with you in a second Energy Central Expert interview. The first question would be what have you been up to and excited by in the time since we last chatted in January 2023? How has the landscape for the energy sector in your world changed? 

Deepak Parameswaran: Thank you, I’m glad to be back and contribute once more to Energy Central. Since our last discussion, several significant developments have occurred in the Utilities sector. With tightening economic factors and regulators aiming to keep customer bills low, companies are making prudent investment decisions and prioritizing their capital spending. This has led to improvements in operational systems, customer service systems, and the adoption of new technologies like AI and Generative AI to manage costs effectively. The introduction of AI has opened new opportunities but also brought challenges related to ethical AI and the stewardship of customer information

MC: Smaller, more agile systems are often praised for their flexibility, while larger enterprise systems bring stability and scale. How do you advise companies in the energy sectors to navigate this tradeoff effectively?

DP: The utilities we work with are under significant pressure from shareholders, customers, and regulators. Additionally, the financial strain to meet capital and operating budgets makes scale and investment decisions challenging. When advising clients on system size and scale, we always begin with their baseline requirements: What should the system accomplish? What outputs are necessary? What additional systems need integration? In many cases, systems may not be flexible in size due to their extensive scope, such as Energy Management Systems or SCADA systems. However, other systems can be more adaptable as they perform more discrete functions. With major systems now operating in cloud environments, the substantial on-site investments in servers and processing capacity are largely a thing of the past. The primary concern now revolves around system integrations and data management.

MC: How are AI and generative AI transforming customer experiences in industries like energy and utilities? Can you share any successful examples where these technologies have driven customer value?

DP: AI and Generative AI are being developed and utilized in various ways within the utilities sector. Some utilities are still in the testing phase, exploring how AI can enhance processes and systems, such as implementing internal employee experience ‘GPT’ systems to boost efficiency and job performance. For example, one utility uses AI to offer customers usage and energy efficiency recommendations based on their history and past energy usage. This approach not only reduces escalated issues but also demonstrates the utility’s commitment to helping customers beyond mere transactional interactions. As technology continues to evolve, AI and Generative AI will play a crucial role in creating marketing materials, aiding maintenance teams in planning, predicting, and executing maintenance across diverse assets, and enhancing customer interactions through intelligent bots, integrated channel offerings, and more insightful bill analysis.

MC: How do you see digital transformation reshaping the energy, manufacturing, and resources sectors, particularly in terms of business integration and operational efficiency?

DP: At its broadest level, digital transformation is at the core of what we are up to, and what these industries are challenged with.  Every organization defines their own transformation journey, and we help them identify what would be best for them; knowing there is no “cookie cutter” version of digital transformation, because each client is at a different stage of their development.  From our point of view, digital transformation sets across several areas, with cybersecurity being the foundation.  Meaning that nothing happens unless we have a secure environment shielded from potential harmful attacks.    We focus on multiple areas to enable the transformation journey including underlying technology and data, operational excellence, customer engagement, culture and change, collaboration and partnerships, and regulatory / policy.  All of those form the foundation of the transformation journey.  Our clients can pick and choose their focus, but many also choose to implement broadly based on our recommendations.

MC: What are the biggest challenges you’ve observed when companies try to implement AI solutions in these industries? How can they overcome these hurdles?

DP: That’s an excellent question. Companies face three major challenges: data quality, talent gap, and strategic alignment. Poor data quality and integration issues significantly impact AI effectiveness. To address this, companies need to implement rigorous data cleaning and validation processes and establish comprehensive data governance frameworks. Additionally, there is a shortage of qualified AI professionals. Companies should invest in training existing staff and partner with firms like Wipro. Starting with small pilot projects can help build internal expertise. Lastly, while many firms consider AI critical for success, most lag in implementation due to a lack of strategic alignment. To improve this, companies need to define clear business objectives before implementation and align AI initiatives with organizational goals and ROI.

MC: What do you see as the next phase of digital transformation in the energy sector, and how should companies prepare to adapt to these upcoming changes?

DP: The next phase of digital transformation in the energy sector is poised to bring significant changes and challenges. Companies will need to adapt quickly to stay competitive and meet evolving demands. Here are some key aspects of the upcoming digital transformation and how energy companies should prepare:

Artificial intelligence and machine learning will play an increasingly crucial role in the energy sector. These technologies will be used to optimize grid management, improve energy efficiency, and predict demand patterns with greater accuracy. To prepare, companies should:

• Invest in AI and ML capabilities, both in terms of technology and talent
• Develop strategies for integrating AI into core operations
• Ensure data quality and accessibility to fuel AI/ML systems

Consider also adopting Enhanced Cybersecurity Measures. As digitalization increases, so does the risk of cyberattacks. The energy sector will face intensified cyber threats targeting smart grids, IoT devices, and digital infrastructures. To address this, companies must:

• Prioritize cybersecurity in all digital initiatives
• Invest in advanced threat detection and response systems
• Train employees at all levels on cybersecurity best practices

Additionally important is Workforce Transformation: The digital transformation will require a significant shift in workforce skills and capabilities. Companies should:

• Invest in training and upskilling programs for existing employees
• Recruit talent with digital and data analytics skills
• Foster a culture of innovation and continuous learning

Lastly, pursue Regulatory Adaptation: As the energy sector becomes more digitalized, regulations will need to evolve to keep pace with technological advancement. As a result, companies must focus on,

• Staying informed about emerging regulations related to digital technologies
• Participating in industry discussions and policy-making processes
• Developing flexible systems that can adapt to changing regulatory requirements

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Thanks to Deepak for joining me for this interview and for providing a wealth of insights and expertise to the Energy Central Community. You can trust that Deepak will be available for you to reach out and connect, ask questions, and more as an Energy Central member, so be sure to make him feel welcome when you see her across the platform.

The other expert interviews that we’ve completed in this series can be read here, and if you are interested in becoming an expert, you can reach out to me or you can apply here.