AI Can Cut Energy Use by 30% Through Smart Automation, Schneider Electric CEO Says

AI Can Deliver Major Power Savings, Says Schneider CEO Blum

Artificial intelligence, which is emerging as one of the big drivers of global energy demand, also has major potential to help conserve electricity, according to Schneider Electric SE. Automation of power systems with AI could help homes, factories and data centers cut as much as 30% of their energy use, said Olivier Blum, chief executive officer at the French grid solutions firm. "I'm absolutely convinced" the solution to global power problems lies in managing demand, rather than supply, he said in a Bloomberg Television interview on Thursday on the sidelines of the India AI Impact Summit in New Delhi. Schneider Electric CEO Olivier Blum discusses whether he sees artificial intelligence as a growth accelerator for the French industrial giant's software portfolio or a potential disruption risk. Global power demand from data centers will nearly triple to 219 gigawatts by 2030, with AI workloads accounting for roughly 70% of that, Mckinsey & Co. said in a report last year. Meanwhile, a rapid expansion in renewable energy capacity has resulted in the need to make power grids worldwide more flexible. That is possible with more intelligent management of energy systems using AI, Blum said, indicating there's still some distance to go in that direction. "We are at a turning point," he said. "If you ask me where we are technologically, I think we have done 20% of the job. The next two years will be critical."

India can lead global innovation in AI, energy intelligence: Schneider Electric CEO

New Delhi is set to star as a frontrunner in global innovation, particularly in artificial intelligence and smart energy strategies. Schneider Electric's Olivier Blum underscored India's immense promise, drawing attention to its cost-effective solutions, exceptional engineering talent, and supportive government policies. With its expertise in power, automation, and digital technologies, India is well-equipped to address complex challenges worldwide. New Delhi: India is entering a new phase where it can lead global innovation, especially in artificial intelligence (AI) and energy intelligence, Olivier Blum, chief executive officer of Schneider Electric, said on Thursday. With strong support from the government and industry, India has the potential to be at the centre of the next technological transformation, he said while speaking at the AI Impact Summit here. As he puts it, "If you can crack the code in India, you can succeed anywhere in the world". The country offers a combination of cost efficiency, innovation and engineering talent, making it a key hub for the global AI revolution, the CEO said. "We are starting a new phase of the planet, a new technology revolution, which is called AI, where India can be the place where a lot of innovation starts with. I think we are at the point of time, where India can innovate the next technology that will make the world more efficient," he said. With strong capabilities in power, automation, and digital technologies, the country has the ingredients to solve complex global challenges, Blum said. "The level of innovation I know in India, some people also say 'jugaad' in India. But the level of creativity that you can have in India, yet new system that will solve the most complex problem of the planet can be done in this country. And when you look at the number of engineers you have in power, automation, digital, you have all the ingredients which are together at a point in time where we need to make AI, a big transformation for the planet," he said. For Schneider Electric, India is not just another market; it is the third-largest globally, the largest in terms of employees (40,000) and home to its biggest R&D centre with 8,000 engineers, he added. Blum highlighted how AI and energy are becoming interconnected across industries. "So in terms of electrification that you need for the planet. It's not about making usage more electrical and supporting the electrification of the planet, for cars, for heat pumps, for electrification of process. What bring AI on top of that, it's another level of pressure on the energy system...AI means more compute. More compute means more energy," he said.