Siemens: Leaders Say AI Holds Key to Energy Transition

A new study from Siemens reveals a transformation in global infrastructure and energy strategies, caused by geopolitical instability and the pursuit of national energy security.

The Siemens Infrastructure Transition Monitor 2025, which gathered insights from 1,400 senior executives across 19 countries, indicates a pivot towards resilient and digitally advanced energy systems.

In this new landscape, artificial intelligence and digitalisation are becoming central to managing the dual priorities of energy independence and climate action.

According to the report, the emphasis on national energy security has now surpassed global climate collaboration as the primary factor of the energy transition. This change reflects increasing global instability and supply chain volatility.

What was once a globally coordinated effort to decarbonise is now evolving into a strategy focused on energy autonomy and resilience.

This change does not necessarily mean a trade-off with net zero goals but instead positions resilience as a crucial enabler of progress.

Matthias Rebellius, Managing Board Member of Siemens AG and CEO of Smart Infrastructure, explained: “The infrastructure transition is entering a new phase whereby national goals of energy security are overtaking global collaboration on decarbonisation.”

Digitalisation and AI drive national resilience

The move away from global cooperation towards national self-sufficiency is a structural change in how countries are forming their energy strategies.

According to the Siemens study, over three in five (62%) leaders believe future energy systems will depend more on local or regional production than on global trade.

Consequently, the integration of renewables, energy storage readiness and advanced grid systems are emerging as critical components of this self-sufficiency.

Digitalisation is identified as the second most important factor for accelerating the transition to clean energy, surpassed only by energy storage.

The findings highlight a growing recognition of the power of technology to fortify national infrastructure. 66% of respondents believe AI is making critical infrastructure more resilient while 59% are already using it to support decarbonisation in their operations.

For Matthias, the opportunity is clear. He says: “AI, technology and digitalisation can empower organisations and governments to manage the complexities of renewable-based systems, ensure reliability and accelerate the clean energy transition smarter and more sustainably.”

AI's role in a complex energy landscape

As resilience and independence gain precedence, confidence in achieving global climate targets appears to be wavering. The Siemens monitor shows that 57% of global executives anticipate a rise in fossil fuel investment over the next two years.

Only 37% now believe they will meet their 2030 decarbonisation targets, a drop from 44% in 2023. This decline in optimism highlights the challenges ahead.

The report stresses that progress remains possible through sustained investment in digital innovation and the modernisation of energy grids.

These technologies are key levers for pursuing resilience and decarbonisation at the same time. The development of flexibility markets, which are systems that permit the real-time, cross-border management of renewable energy flows, is highlighted as a future necessity.

Daniela Haldy-Sellmann, SVP & General Manager of Energy and Natural Resources Industries at SAP, says: “We’re not just building infrastructure anymore. We’re building flexibility markets. That’s the only way to respond fast enough, cost-effectively, across borders.”

Intelligent infrastructure and industrial AI

The role of smart buildings is also becoming more strategic. With digital platforms and AI, buildings can now interact with the grid, anticipate energy demand and optimise their performance autonomously.

Brian Motherway, Head of Energy Efficiency and Inclusive Transitions at the International Energy Agency, says: “AI will reveal entirely new ways to think about energy management. But it doesn’t replace the need to get the basics right, like choosing efficient equipment, passive design measures, smart buildings and strong appliance standards.”

In the industrial sector, which faces some of the most difficult decarbonisation challenges, AI and digital twins are being used to optimise production and manage energy loads in real time.

Despite cost pressures, many industrial organisations are making progress in renewables and electrification.

However, policy uncertainty remains a barrier, with over half of industrial respondents reporting that unclear energy policies delay their clean technology investment decisions.

The report argues that stable regulation is essential for unlocking the long-term capital needed to speed up the industrial transition, where efficiency from AI and management could play an important role.