Artificial intelligence is increasingly shaping how utility companies manage both their power systems and their real estate. A recent JLL report, “Optimizing Beyond the Grid: How AI is Revolutionizing Utility Facilities and Workplaces,” finds that utilities are using AI to go well beyond customer service improvements and grid management.
According to the report, applying AI to real estate functions can help utilities reduce operating costs, advance sustainability goals and compete more effectively for talent. JLL notes that generative AI can support turning owned and leased properties into self-optimizing assets that contribute directly to business performance.
Utilities are also contending with higher electricity demand, partly driven by the expansion of data centers. A Gartner forecast cited in the article projects that by 2027, 40% of power and utility organizations will use AI-driven operators in their control rooms, underscoring how quickly AI is being integrated into core operations.
The report points out that utility portfolios extend far beyond power grids to include corporate offices, operations centers, warehouses, maintenance facilities and substations. JLL concludes that consolidating data from these diverse facilities into centralized platforms enables AI tools to identify inefficiencies and suggest operational improvements. Emily Roman, executive director of technology advisory for industrials at JLL, said utilities are turning fragmented facilities into intelligent portfolios through these AI-driven systems.
Predictive maintenance is highlighted as a key use case. AI systems can continuously monitor equipment conditions, detect emerging issues and allow teams to address them before they develop into major failures. This shifts maintenance from a reactive to a proactive discipline. While such systems require upfront investment, JLL estimates that predictive maintenance can deliver returns of up to 545% over time through reduced capital replacement costs, greater equipment efficiency and lower energy usage.
The report also describes how agentic AI is being applied to lease analysis, occupancy trends and portfolio data to support real estate planning. AI-enabled workplace management platforms are analyzing inputs such as occupancy sensors, security badge swipes and room reservations to understand how offices are actually used.
These insights can inform decisions about shrinking or reconfiguring office footprints, creating more flexible work environments or adding amenities, while also lowering operating expenses. Adjusting lighting, HVAC and cleaning schedules to align with real utilization rather than fixed routines is one example. Edward Connolly, managing director of integrated portfolio services at JLL, noted that utilities have a strong incentive to optimize office energy use because many corporate real estate costs cannot be recovered through utility rates.
Although AI in grid operations has received much of the industry’s attention, JLL’s analysis emphasizes that its potential extends to broader operations, cost control and positioning real estate portfolios for growth. The report concludes that utilities that fully deploy AI across facilities and workplaces can convert their holdings into intelligent, optimized portfolios that provide competitive advantage.
