Schneider Electric is leveraging artificial intelligence to accelerate industrial decarbonization, integrating AI with electrification, automation, and digitalization to create more efficient and sustainable energy systems. Under the leadership of CEO Olivier Blum, the company is moving beyond isolated automation projects to develop fully integrated, software-defined ecosystems for buildings, data centers, factories, and infrastructure. This AI-forward strategy is a core component of the company’s efforts to address climate change by delivering smarter and more sustainable products to its clients.
The company’s approach to AI is multifaceted, encompassing internal productivity enhancements, the augmentation of existing products, and the creation of new value streams. By embedding AI across its operations, Schneider Electric aims to manage the complexity and vast amounts of data inherent in modern energy systems. The company has established a dedicated AI Hub to govern its AI initiatives and build data science expertise, ensuring that AI is deployed effectively and responsibly across all business units. This strategic focus on AI-driven innovation is central to Schneider Electric’s mission to lead the convergence of energy technology and digital intelligence.
A Multi-Pronged AI Strategy
Schneider Electric’s AI strategy is applied across three principal areas: enhancing internal productivity, augmenting its product offerings, and generating new value for its customers. Internally, the company utilizes AI to streamline its operations and improve efficiency. For instance, AI is employed to automatically analyze and route the 7.5 million customer service tickets that Schneider Electric processes annually, a task that was previously handled manually. The company has also developed an internal generative AI application called Jo-ChatGPT, which provides employees with secure access to AI capabilities while maintaining data privacy within the company’s infrastructure.
In terms of product augmentation, Schneider Electric integrates AI into its solutions to enhance their performance and sustainability. The company’s leadership believes that the energy transition and carbon reduction goals cannot be achieved without the power of AI to manage the immense complexity and data involved. Philippe Rambach, the company’s Chief AI Officer, has emphasized that AI is essential for navigating the numerous parameters of energy systems and achieving optimal outcomes. The company’s AI Hub, established in late 2021, plays a crucial role in this endeavor by partnering with business units to deploy AI solutions that deliver tangible benefits to customers.
AI-Powered Energy Optimization in Practice
The commercial viability of Schneider Electric’s AI strategy is demonstrated through its energy optimization solutions. The company’s EcoStruxure Microgrid Advisor, for example, uses AI-driven analytics to optimize energy buying, selling, and consumption decisions, enabling more efficient and cost-effective energy management. A prime example of this technology in action can be found at Schneider’s research hub in Boston. The facility features an advanced microgrid with 1,379 solar modules that generate over 520,000 kilowatt-hours of energy annually, which is equivalent to offsetting the greenhouse gas emissions from more than 2,400 passenger vehicles.
This system not only manages microgrid operations but also optimizes electric vehicle charging to reduce carbon intensity during peak demand periods. According to Rambach, AI allows for the analysis of all variables to determine the most sustainable, cost-effective, and high-quality manufacturing setup. This illustrates how Schneider Electric is using AI to create tangible benefits in both sustainability and cost-effectiveness, showcasing the practical application of its AI-driven approach to energy management.
Transforming Business Through Technology
At its recent Innovation Summit in Copenhagen, Schneider Electric framed its technology approach as a means of accelerating business transformation in a rapidly changing world. Blum highlighted the convergence of energy, digital technology, and geopolitics in reshaping our lives, emphasizing the extraordinary opportunities that arise from these complex challenges. Gina Li, VP for Business Development & Inorganic Growth at Schneider Electric, echoed this sentiment, underscoring the global priority of powering AI with more efficient and sustainable energy sources. She explained that Schneider Electric is driving innovation to create a world that is more electrified, automated, and digitized.
The company’s focus on business transformation is not just about developing new technologies but also about ensuring their responsible and sustainable implementation. This involves a holistic approach that considers the entire lifecycle of energy systems, from generation to consumption. By integrating AI into its solutions, Schneider Electric is enabling its customers to navigate the complexities of the energy transition and achieve their sustainability goals while also improving their operational efficiency and resilience. This strategic approach to business transformation positions Schneider Electric as a key player in the global effort to create a more sustainable and electrified future.
Governance and Trust in AI Deployment
To ensure the responsible development and deployment of AI, Schneider Electric has established a robust governance structure. This includes separate governance and data offices, as well as a dedicated Digital Risk Leader role. This framework is critical for building and maintaining trust, particularly in sensitive sectors such as critical infrastructure, national electrical grids, nuclear plants, hospitals, and water treatment utilities. Rambach has emphasized the importance of trust, drawing on the company’s long history of developing solutions for these critical industries.
The company’s commitment to ethical AI is also reflected in its efforts to address the challenges associated with AI development, such as the need for high-quality data. Rambach has acknowledged that the lack of sufficient quality data can be a significant obstacle, sometimes leading to the discontinuation of AI use cases at the ideation stage or later. By establishing a strong governance framework and being transparent about the challenges, Schneider Electric is working to build confidence in its AI solutions and ensure that they are deployed in a safe, reliable, and ethical manner. This focus on trust and governance underpins the company’s strategy for deploying AI in some of the world’s most critical systems, further solidifying its position as a leader in the energy transition.
A Future-Focused Vision
Schneider Electric’s vision for the future is one where the convergence of electrification, automation, and digital intelligence drives sustainable progress. The company’s leadership believes that this integrated approach is essential for tackling the world’s most pressing energy and climate challenges. By harnessing the power of AI, Schneider Electric is not only optimizing its own operations but also empowering its customers to achieve new levels of efficiency, sustainability, and resilience. This forward-looking perspective is a driving force behind the company’s ongoing innovation and its commitment to creating a more sustainable future for all.
