Power and utilities sector embrace new technologies to decarbonize grids, boost reliability, personalize customer experience, ISG Provider Lens® report says
Power and utilities enterprises in North America are rapidly adopting AI-enabled and data-driven technologies to modernize grid operations, better manage assets and be more responsive to customers amid green energy mandates and cost pressures, according to a new research report published today by Information Services Group (ISG) (Nasdaq: III), a global AI-centered technology research and advisory firm.
The 2025 ISG Provider Lens® Power and Utilities Industry — Services and Solutions report for North America finds that utilities across the region are shifting from reactive to predictive and proactive operating models as distributed energy resources (DERs), electric vehicles and customer expectations for digital services increase system complexity. Enterprises are engaged in decades-long technology transformations while navigating ever-evolving regulations, heightened cyber risk and long-term capital constraints.
"North American utilities are balancing ambitious decarbonization goals with the need to maintain reliability and affordability," said Korey Barnard, partner, ISG Energy & Utility. "AI and advanced digital platforms are becoming essential for carrying out these complex initiatives at scale."
Utilities in the region are increasingly using AI, generative AI and machine learning at the heart of their operations, improving grid and asset performance, the report says. They apply these technologies to outage and storm forecasting, predictive maintenance and field workforce optimization to reduce manual effort and operating costs.
Digital innovation is helping utilities better manage infrastructure amid change and economic pressures. Using advanced analytics, utilities are extending asset life by identifying equipment failures earlier, which has improved restoration times and service-level agreement compliance. Grid-edge intelligence is emerging as a high priority as utilities integrate growing numbers of distributed energy resources, ISG says. Enterprises are deploying DER management systems (DERMS), advanced distribution management platforms and virtual power plants to manage bidirectional power flows and defer major capital upgrades. These solutions allow utilities to increase network capacity and resilience using existing infrastructure while supporting rooftop solar, battery storage and flexible demand programs.
Customer engagement modernization is accelerating as North American utilities respond to rising demand for transparency, the report says. Enterprises are upgrading customer information systems to support time-based rates, flexible payment plans and personalized energy insights. AI-enabled contact centers, conversational self-service tools and automated quality management are improving first-contact resolution and reducing service costs while enabling more empathetic interactions during billing disputes, outages and extreme weather events.
"Utilities that align asset, grid and customer modernization efforts around shared data platforms see faster improvements in operations," said Swadhin Pradhan, principal analyst at ISG Provider Lens Research and lead author of the report. "This integrated approach helps utilities manage reliability, affordability and customer trust simultaneously."
The report also explores other technology trends in the North American power and utilities sector, including growing investment in cybersecurity and compliance technologies and the use of digital twins and IoT data for long-term infrastructure planning.
For more insights into the challenges facing North American utilities, plus ISG's advice for addressing them, see the ISG Provider Lens® Focal Points briefing here.
The 2025 ISG Provider Lens® Power and Utilities Industry — Services and Solutions report for North America evaluates the capabilities of 35 providers across four quadrants: Enterprise Asset Management, Process and Customer Experience Management, Smart Metering and Grid Modernization and Technology, Transformation and Consulting.
The report names Accenture, Capgemini, Cognizant, Deloitte, HCLTech, IBM, Infosys, TCS and Wipro as Leaders in all four quadrants. It names Hitachi Digital Services and PwC as Leaders in three quadrants each. Tech Mahindra is named as a Leader in two quadrants, and CGI, Concentrix, Cyient, EY and LTIMindtree are named as Leaders in one quadrant each.
In addition, Kyndryl, Sutherland and Tech Mahindra are named as Rising Stars — companies with a "promising portfolio" and "high future potential" by ISG's definition — in one quadrant each.
In the area of customer experience, Capgemini is named the global ISG CX Star Performer for 2025 among power and utilities service providers. Capgemini earned the highest customer satisfaction scores in ISG's Voice of the Customer survey, part of the ISG Star of Excellence™ program, the premier quality recognition for the technology and business services industry.
The 2025 ISG Provider Lens® Power and Utilities Industry — Services and Solutions report for North America is available to subscribers or for one-time purchase on this webpage.
About ISG Provider Lens® Research
The ISG Provider Lens® Quadrant research series is the only service provider evaluation of its kind to combine empirical, data-driven research and market analysis with the real-world experience and observations of ISG's global advisory team. Enterprises will find a wealth of detailed data and market analysis to help guide their selection of appropriate sourcing partners, while ISG advisors use the reports to validate their own market knowledge and make recommendations to ISG's enterprise clients. The research currently covers providers offering their services globally, across Europe, as well as in the U.S., Canada, Mexico, Brazil, the U.K., France, Benelux, Germany, Switzerland, the Nordics, Australia and Singapore/Malaysia, with additional markets to be added in the future. For more information about ISG Provider Lens research, please visit this webpage.
About ISG
ISG (Nasdaq: III) is a global AI-centered technology research and advisory firm. A trusted partner to more than 900 clients, including 75 of the world's top 100 enterprises, ISG is a long-time leader in technology and business services that is now at the forefront of leveraging AI to help organizations achieve operational excellence and faster growth. The firm, founded in 2006, is known for its proprietary market data, in-depth knowledge of provider ecosystems, and the expertise of its 1,600 professionals worldwide working together to help clients maximize the value of their technology investments.
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