This article was written by Snowflake and originally appeared on the Snowflake Blog here: https://www.snowflake.com/blog/datas-evolution-in-the-cloud-data-powers-insights-in-the-energy-industry/
Digital transformation is a top priority for energy executives looking to stay ahead of the competition, according to a recent survey conducted by The Economist Intelligence Unit and sponsored by Snowflake. AI and machine learning are major components of the energy industry’s digitalization trend. More and more, companies are using these advanced technologies to gain a business advantage.
These are some of the insights revealed by the survey of 914 global executives across eight industries, including 112 from the energy sector. The survey results reveal how this sector’s leaders are adapting their data strategies, engaging with the broader data ecosystem, and converting data insights into growth and better performance.
Most (88%) energy industry executives indicate they are likely to use AI or machine learning to help them draw insights from data and manage risks around their data strategy. Compared to executives from other industries, they are also more likely to say the top data enhancement priorities are to invest in AI and machine learning tools (by 43% versus a survey average of 38%) and to boost their ability to deal with data-related regulations (by 30% versus a survey average of 25%). They also cite development of new products and services as a major use case for AI and machine learning.
Meanwhile, energy executives express concern about regulatory compliance and security. They say the biggest challenge with exchanging data externally is the risk that confidential information will be leaked (48%), followed by the risk of data being used for unintended purposes (38%). They rank highest among industries citing data privacy regulations as the biggest challenge to their ability to draw insights from data (by 46% versus a survey average of 41%), followed by lack of accurate data (33%), and lack of internal talent to analyze data (29%).
Energy companies must embrace digital transformation so they can leverage data and new technologies. With a modernized data infrastructure, they can be agile in both tempering risks and taking advantage of opportunities.