How Schneider Electric Use AI for Industry Decarbonisation

Schneider Electric has long focused on innovation and sustainability when it comes to energy transition, seeing them as inextricably linked.

Now, the company knows the importance of AI too.

For Schneider Electric, its leadership team views automation, digitisation and electrification as its most useful tools in the fight against climate change – using them to deliver smarter, more efficient and more sustainable products for its clients.

As Olivier Blum, CEO of Schneider Electric, says: “Energy technology means leading the convergence of electrification, automation and digital intelligence.”

This means that as AI matures, Schneider Electric is moving beyond isolated automation projects towards fully integrated systems.

The company has established what it calls a convergence strategy that could enable buildings, data centres, factories, infrastructure and grids to operate as software-defined ecosystems.

Integrating AI across company operations

Schneider Electric’s AI strategy is applied across three areas: internal productivity, product augmentation and new value creation.

It’s approach to AI spans from its internal operations to the products it offers customers.

Internally, AI is used to improve efficiency. Schneider Electric processes approximately 7.5 million customer service tickets each year.

AI now automatically analyses and routes requests that employees previously handled manually.

Schneider Electric also deployed Jo-ChatGPT, an internal application that provides employees with secure access to generative AI while keeping data within the company’s infrastructure.

Philippe Rambach, the firm’s Chief AI Officer, sees AI as essential in the race to mitigate climate change.

“I believe that energy transition, sustainability and carbon reduction will simply not happen without AI,” he says.

“There is too much data, too much complexity and too many parameters.”

Schneider Electric established an AI Hub in late 2021 to provide governance, build data science expertise and partner with business units to deploy AI across Schneider Electric. However, challenges remain.

Philippe notes that “the lack of the necessary amount of quality data is one of the reasons why we close some AI use cases, either already at the ideation stage, or later.”

AI-driven energy optimisation

The commercial viability of Schneider Electric’s AI strategy can be seen in its energy optimisation solutions.

The company’s EcoStruxure Microgrid Advisor uses AI-driven analytics to optimise energy buying, selling and consumption decisions.

A practical example is at Schneider’s research hub in Boston. An advanced microgrid that incorporates 1,379 solar modules generates over 520,000 kilowatt-hours annually. This is equivalent to removing the greenhouse gas emissions from more than 2,400 passenger vehicles.

The system manages microgrid operations and electric vehicle charging to reduce carbon intensity during peak demand periods.

Philippe says: “With AI we can analyse all variables to formulate an optimal manufacturing set-up that can help to deliver the most sustainable, cost-effective and highest-quality product possible.”

This illustrates how AI is used to create tangible benefits in sustainability and cost-effectiveness.

A strategic approach to business transformation

At Schneider Electric’s Innovation Summit in Copenhagen from 22 to 23 October, Schneider Electric framed its technology approach around accelerating business transformation.

“The world is changing faster than ever,” Olivier says.

“Energy, digital technology and geopolitics are reshaping the systems that power our lives. The challenges are complex, but the opportunities are extraordinary.”

Gina Li, VP for Business Development & Inorganic Growth at Schneider Electric, has been reflecting on how to make the technology as sustainable as possible.

“The question of how to power AI with more efficient and sustainable energy is a global priority,” she explains.

“At Schneider Electric, we are driving innovation to create a world that is more electrified, automated and digitised.”

To ensure the responsible development of AI, Schneider Electric has established separate governance and data offices alongside a Digital Risk Leader role. This governance structure is critical for building trust, particularly in sensitive sectors.

Philippe says: “As a company that has been developing solutions for clients in critical infrastructure, national electrical grids, nuclear plants, hospitals, water treatment utilities and more, we know how important trust is.”

This focus on trust and governance underpins Schneider Electric’s strategy for deploying AI in the world’s most critical systems.