Dec 22 2025
Artificial Intelligence

Tech Trends in Energy, Oil and Gas in 2026

Energy and utilities leaders face a tipping point as AI scale, grid complexity and sustainability demands collide.

Energy, oil and gas companies are heading into 2026 facing a convergence of AI, infrastructure and sustainability pressures reshaping how the sector operates.

Agentic AI is moving from pilot projects into production at scale, while utilities prepare for AI-orchestrated grids that manage volatility, distributed energy resources and outages in real time.

Simultaneously, IT/operational technology convergence and edge modernization are becoming essential to reliability and safety.

Digital twins are evolving into simulation and decision engines, and sustainability is colliding with AI’s growing energy footprint. Meanwhile, the rising cost burden of technical debt is forcing platform modernization to the top of CIO agendas.

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Agentic AI at Scale

Agentic AI is moving from pilot projects into core energy operations, increasing automation in safety and mission-critical systems. However, IDC projects that by 2030, fewer than half will have mature agent architecture and lifecycle management in place.

Gaia Gallotti, research director for IDC’s Energy Insights, says the biggest barrier to scaling agentic AI in core energy and utility operations is not the technology itself but the underlying data environment.

She explains that most still operate with fragmented, siloed data and lack the governance models needed to support autonomous systems in mission-critical workflows.

“Production forecasting and bid optimization are where we expect agentic AI to first support these organizations in a meaningful way,” she says. “We are very far away from agentic AI running core grids or making operational decisions.”

WATCH: Artificial intelligence continues to be a top trend in IT for energy, oil and gas companies.

Unified IT/OT Compute and Edge Modernization

Energy and utility operators are accelerating the convergence of IT and OT as they modernize for AI-driven, low-carbon operations. According to research firm Gartner, organizations are standardizing cloud-edge architectures that support real-time decision-making at the edge while using centralized cloud platforms for analytics and scale.

“Combining Internet of Things sensors with edge computing — which is only enabled with the cloud — offers much better real-time decision-making that supports asset life and health overall,” Gallotti says. “That helps companies improve operational efficiency and lower the cost to serve end customers.”

By 2027, according to Gartner, AI-powered asset intelligence will reduce outages by 40%, delivering measurable operational savings.

“You can protect assets before something really devastating happens, rather than dealing with much more extensive damage that costs significantly more to fix,” Gallotti says.

DIVE DEEPER: How to manage IT/OT convergence securely.

From Digital Twins to Simulation Twins

Energy and utility companies are evolving digital twins into more advanced simulation twins that go beyond monitoring assets to actively supporting planning, safety and operations.

These next-generation twins combine real-time operational data, AI models and scenario simulations to test what-if conditions and recommend next-best actions. Gartner describes this progression as a maturity path from static and real-time twins to simulation, immersive and adaptive intelligence.

Gallotti says the long-term value lies in using those simulations to guide operational choices, not just visualize risk.

“That’s how you start driving better operational efficiency and a lower cost,” she says.

Gaia Gallotti
With AI and GenAI booming and data centers being very power-hungry, this reshapes a lot of conversations with utility companies.”

Gaia Gallotti Research Director, Energy Insights, IDC

Data, Sustainability and the AI Energy Footprint

As AI adoption accelerates, energy and utility operators are being forced to treat AI itself as both a grid variable and a growing emissions source: Gartner projects that by 2028, AI workloads will account for roughly half of IT-related greenhouse gas emissions.

Gallotti says the rapid expansion of AI and data centers is forcing utilities to confront the carbon and affordability impacts of AI as part of the energy transition.

She frames AI as a highly power-intensive load that risks distorting decarbonization efforts if utilities do not put guardrails in place to balance sustainability, reliability and cost.

“With AI and GenAI booming and data centers being very power-hungry, this reshapes a lot of conversations with utility companies,” Gallotti says.

She adds that companies are overwhelmed by the number of use cases for AI and GenAI that they could be leveraging.

“They really need to focus on which uses have the better business case and look for the low-hanging fruit first,” she says.

Platform Modernization, Technical Debt and Sovereignty

Utilities are heading into 2026 weighed down by technical and data debt, limiting AI progress. IDC data shows organizations face up to a 40% risk of missing AI value when legacy platforms remain in place, pushing utilities to prioritize modernization.

Legacy systems and siloed data leave energy and utility companies unable to move forward with AI initiatives until their core IT environments are modernized.

“They must modernize their entire IT landscape and move away from data silos toward a platform that has an inherent data layer,” Gallotti says. “Data sovereignty is an important question to address when setting up these news systems.

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