Agentic AI: Autonomous Agents Transforming Electrical Utilities

June 26, 2025
By PowerGrids AI Team
11 min read

Unlike traditional AI models that follow predefined instructions, agentic AI employs multiple intelligent agents that collaborate, plan, and adapt in real time.

Agentic AI: Autonomous Agents Transforming Energy and Industry

Introduction: Agentic AI refers to systems that can act autonomously to achieve goals without constant human control. Unlike traditional AI models that follow predefined instructions, agentic AI employs multiple intelligent agents that collaborate, plan, and adapt in real time. As one expert notes, agentic AI “revolutioniz[es] business processes, enhancing decision-making, and reshaping entire sectors”. These systems build on decades of AI research (e.g. multi-agent systems and expert systems) but add deep learning and large-scale data processing to enable self-directed reasoning. Agentic AI is now a hot topic: for example, IEEE even hosted a SmartGrid workshop titled “Agentic Energy Systems in Smart Grids: Theories, Technologies, and Applications”, indicating growing interest in power/utility domains.

Methodology: This case study synthesizes information from scholarly and industry sources (IEEE, Springer, etc.) about agentic AI. We surveyed academic papers, technical reviews, and thought-leader reports on agentic/AI agents, especially in energy, heavy industry, oil & gas, and manufacturing. We compared agentic AI to traditional/non-agentic AI approaches and incorporated historical context (e.g. multi-agent systems). Citations include IEEE articles, conference workshops, and peer-reviewed sources. Our analysis highlights key concepts, contrasts, and applications, and we provide recommendations for stakeholders in electrical utilities, energy, oil & gas, and manufacturing.

Background and Definitions

Agentic AI systems comprise multiple autonomous agents that work together to accomplish complex, multi-step objectives. Each agent may have a specialized role (e.g. data retriever, planner, executor), and they coordinate via communication channels or orchestrators. In other words, agentic AI represents a shift from single-model AI to a distributed, goal-driven ecosystem of agents. As defined in recent literature: “Agentic AI systems represent an emergent class of intelligent architectures in which multiple specialized agents collaborate to achieve complex, high-level objectives”. This contrasts sharply with traditional AI (or non-agentic AI), which typically involves isolated algorithms or models performing narrow tasks.

For clarity, consider the difference from a historical perspective. Early AI/agent-like systems (e.g. expert systems, rule-based robots) were reactive and task-specific. They followed hardcoded rules and lacked adaptability; for example, an early autonomous vehicle like the Stanford Cart reacted to obstacles using fixed logic. Such systems “lacked the generative capacity, self-learning, and environmental adaptability of modern agentic AI”. By contrast, agentic AI uses advances like deep learning and reinforcement learning to learn from data and refine its behavior over time.

Key Differences: Agentic AI vs Traditional AI

  • Autonomy and Scope: Traditional AI models require human-defined goals and oversight. They perform one specific function (e.g. classification or optimization) and usually need retraining for new scenarios. In contrast, agentic AI operates with goal-oriented autonomy. It can decompose a high-level goal into sub-goals and pursue them without step-by-step instructions. For example, a traditional system might recognize defects on an assembly line, but an agentic AI could itself schedule maintenance and adjust workflows to prevent those defects.

  • Multi-Agent Collaboration: Classic AI typically involves a single model. Agentic AI explicitly uses many collaborating agents. These agents communicate and coordinate to solve parts of a problem. For instance, an energy management system might include separate agents for load forecasting, generation scheduling, and asset maintenance, all working together. This is a fundamental architectural leap: “Agentic AI systems are composed of multiple, specialized agents that coordinate, communicate, and dynamically allocate sub-tasks within a broader workflow”.

  • Adaptability: Traditional AI models are relatively static: they do not inherently adapt to changing conditions without manual retraining. Agentic AI, by design, continuously senses and learns from the environment. Agents share memory and reasoning, allowing the system to re-plan on the fly if goals or context change. This makes agentic systems more robust in dynamic industrial settings.

  • Task Complexity: Traditional AI excels at single, well-defined tasks (e.g. image recognition, demand forecasting). Agentic AI is built for multi-step, open-ended tasks. For example, automating an entire supply chain process or drilling operation involves many decisions over time; agentic AI can orchestrate those steps end-to-end. In summary, agentic AI extends AI capabilities from narrow automation to orchestrated intelligence across a network of agents.

Analysis of Agentic AI in Energy and Industry

Electrical Utilities and Smart Grids

In the power sector, agentic AI can enable smart, autonomous grids. Imagine an agentic system where separate AI agents manage generation, storage, distribution, and demand response – coordinating to optimize stability and efficiency in real time. IEEE is already exploring this: the IEEE SmartGridComm 2025 conference includes a workshop on “Agentic Energy Systems in Smart Grids”, signifying recognition of this potential. In practice, agentic AI could continuously monitor grid health, predict component failures, and reconfigure flows to prevent outages. Compared to conventional grid management (often rule-based or manually supervised), agentic AI promises faster adaptation to disturbances and more efficient integration of renewables. For example, an agent might detect a drop in wind power output and coordinate others (battery dispatch, adjusting demand-response signals) to maintain balance – all without human input.

Oil and Gas Industry

In oil and gas, AI adoption is already widespread. As one industry survey reports, 92% of oil and gas companies plan to invest in AI within the next two years. Much of this early focus has been on machine learning for forecasting and drilling support. For instance, AI can predict well output, forecast reservoir behavior, and identify drilling issues to improve efficiency. However, these are typically single-model applications. Agentic AI could take this further by enabling autonomous drilling and production systems. For example, in upstream operations, agentic agents could manage complex workflows: one agent analyzes seismic data to plan drilling routes, another adjusts drill parameters in real time, and another schedules maintenance – all in a coordinated loop. In fact, AI has shown value in drilling: predictive models can anticipate “stuck pipe” incidents and suggest corrective actions. An agentic system could automate those interventions. Similarly, in midstream (pipelines) and downstream (refineries), agentic AI could monitor equipment, predict leaks, and autonomously reroute flows to optimize throughput and safety. Compared to traditional oilfield systems (which often require human oversight for each task), agentic AI offers a self-governing approach to complex industrial processes.

Manufacturing and Heavy Industries

Heavy manufacturing (e.g. automotive, aerospace, chemicals) has long used automation. Agentic AI takes industrial AI further by adding intelligent autonomy. Key applications include:

  • Predictive Maintenance: Multiple agents monitor machinery via sensors. They detect early signs of wear and autonomously schedule repairs or part replacements before breakdowns occur, minimizing downtime. This is a step beyond traditional CMMS scheduling because the agent network adapts schedules based on real-time data.

  • Quality Control: Agentic AI can continuously inspect products (e.g. via computer vision) and, if a defect pattern emerges, reconfigure the production line on the fly. For instance, if an agent notices a recurring flaw, it might instruct other agents to adjust machine settings or temporarily halt a process until solved.

  • Supply Chain and Logistics: In complex supply networks, agentic systems can deploy different agents for demand forecasting, supplier management, and logistics. These agents collaborate to anticipate shortages or delays and autonomously reroute orders or shipments. Traditional supply chain AI often looks at fixed data; agentic AI enables continuous adaptation (e.g. automatically finding alternative suppliers if a disruption is detected).

  • Resource Scheduling: Manufacturing plants often face unplanned events (machine failure, urgent orders). Agentic AI can dynamically reschedule tasks. For example, if one assembly robot goes offline, the system’s agents can reassign tasks to other lines in real time, something static schedulers cannot do without manual intervention.

  • Human–Machine Collaboration: Agentic AI can empower robots or cobots to work more flexibly with human workers. Agents can coordinate tasks and ensure safety: if an agentic system detects a hazardous situation, it could autonomously reassign nearby robots to reduce risk.

These capabilities promise efficiency gains and cost savings. For example, reducing downtime by even a few hours in a heavy plant can save millions. Some industry analysts note that energy and heavy asset companies (e.g. Shell, GE, Siemens) are exploring agentic concepts to manage assets and predict failures in real time. In short, agentic AI can transform factories and refineries into highly adaptive, self-optimizing systems – far beyond conventional automation.

Agentic AI vs Non-Agentic AI

It is important to compare agentic AI with existing AI approaches in these sectors. Conventional AI/automation systems excel at pattern recognition and fixed process automation (e.g. neural networks for demand forecasting or PLCs for control), but they lack self-direction. In contrast, agentic AI can autonomously pursue business objectives across domains. For instance, a non-agentic predictive model might identify a potential equipment fault (alerting engineers), whereas an agentic system would take the next step: dispatch a maintenance crew or reconfigure operations in response. Agentic systems also address the decentralization of decision-making: agents can make local decisions in parallel (e.g. local grid agents balancing load) rather than waiting for a centralized controller.

Despite their promise, agentic systems introduce new challenges. Managing a network of autonomous agents raises coordination and safety issues. Researchers warn of risks like “coordination breakdowns, emergent instability, [and] explainability issues” due to the complexity of many interacting agents. In an industrial context, this means rigorous testing and safeguards are essential to ensure that an agentic system’s decisions are reliable.

Recommendations for Industry Stakeholders

Based on our review, the following recommendations can help companies harness agentic AI in energy, utilities, and heavy industry:

  • Pilot and Validate Use Cases: Start with low-risk, high-impact pilots. For example, deploy an agentic AI prototype for predictive maintenance in one plant or for energy forecasting in a microgrid. Measure performance improvements (e.g. reduced downtime or cost) before scaling.

  • Invest in Data and Architecture: Agentic AI requires robust data pipelines and connectivity. Firms should integrate their data (from sensors, logs, market feeds) and ensure high-bandwidth, low-latency networks for agents to communicate. A modular, cloud-based architecture can support distributed agents.

  • Develop Governance and Ethics Frameworks: Assign clear accountability for agentic decisions. As experts note, “in such complex systems, who is responsible if things go wrong?” is a critical question. Companies should establish oversight (e.g. human-in-the-loop checks for critical tasks) and ethical guidelines (privacy, fairness, safety) governing autonomous agents.

  • Focus on Collaboration Skills: Train engineers and operators to work with AI agents, not just use them. For example, human experts could pair with AI agents (“personality pairing”) to leverage each other’s strengths. Upskilling staff in AI basics and decision frameworks will maximize the benefits of agentic systems.

  • Compare with Conventional AI: Continue using existing AI for well-understood tasks, but layer in agentic capabilities where complexity demands it. Hybrid approaches can be effective: use machine learning for fast pattern detection, coupled with agentic orchestration for multi-step execution.

Conclusion: Agentic AI is an emerging class of autonomous AI systems that promise to transform energy, utilities, and heavy industries by automating complex processes end-to-end. Building on earlier AI and multi-agent research, these systems offer greater autonomy and adaptability than traditional AI. As energy companies, manufacturers, and oil & gas firms explore agentic AI, they should proceed thoughtfully: pilot projects and ethical safeguards are essential. For now, agentic AI represents a frontier technology, but one already supported by research and industry initiatives (e.g. IEEE workshops). With careful development, agentic AI could become a powerful tool for innovation, efficiency, and sustainability in the industrial sector.

Key Points (Summary):

  • Agentic AI is a multi-agent, goal-driven AI paradigm enabling systems to act autonomously with minimal human intervention.

  • It builds on multi-agent and expert systems history but adds learning, planning, and coordination.

  • Industry applications include autonomous grid management, self-optimizing drilling, predictive maintenance, and smart factories. Examples: 92% of oil & gas companies are investing in AI; workshops on agentic energy systems are already planned.

  • Advantages over traditional AI: greater autonomy, continuous learning, and ability to manage complex workflows.

  • Challenges: system complexity, coordination risks, and ethical questions (e.g. responsibility for autonomous decisions).

  • Recommendations: Begin with targeted pilots, build integrated data/AI infrastructure, establish governance frameworks, and train teams to collaborate with AI agents.

Sources: Analysis is based on IEEE and academic discussions of agentic AI, industry trends, and foundational AI literature. These sources illustrate agentic AI concepts, evolution, and potential impacts in the energy and heavy industry sectors.

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