Utility Automation Stalls as Kyndryl Finds 70% of Leaders Unprepared

The Kyndryl Readiness Report exposes a widening gap between ambition and execution in the utility sector. Seventy percent of utility leaders surveyed said they feel unprepared for external risks — cyberattacks, extreme weather events, regulatory shifts, and supply chain disruptions — even as the industry accelerates its investment in energy AI tools and digital transformation programs.

The disconnect runs deeper than budgets. Only 29% of respondents cited adaptability as a core organizational value, which helps explain why utilities struggle to pivot when conditions shift. Many utility automation projects launched without clear success metrics or the operational changes needed to capture value from the technology, leaving leaders optimistic about AI's potential but unable to demonstrate returns.

Cybersecurity surfaced as both a top investment priority and a persistent vulnerability. Seventy-five percent of utility leaders said they are pouring money into AI-powered cybersecurity tools to defend grid infrastructure, a logical response given the expanding attack surface created by connected sensors, smart meters, and automated control systems. Each new endpoint on a utility automation platform creates another potential entry point for adversaries, and the sector's interconnected nature means a breach at one utility can cascade across regional grids.

The report frames organizational inertia — siloed departments, risk-averse leadership, and undertrained workforce teams — as the single greatest obstacle to grid modernization. Technical capabilities for energy forecasting AI, automated load balancing, and predictive maintenance already exist at scale. The bottleneck is institutional, and utilities that invest in retraining programs, cross-functional teams, and clear accountability structures will close the readiness gap faster than those that simply purchase more software. For a deeper look at how AI agents are reshaping the energy and utilities sector, the readiness question extends well beyond any single report.

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Sources

• Kyndryl Readiness Report — Kyndryl