Schneider Electric's AI Strategy for Decarbonisation

Under the guidance of its leadership, French energy technology company Schneider Electric is advancing an AI-forward strategy to address decarbonisation.

Schneider Electric combines automation digitisation and AI, viewing them as critical tools in mitigating climate change by delivering more intelligent and sustainable products.

For Schneider Electric, AI is fundamental to the energy transition.

Schneider Electric has long been a proponent of innovation and sustainability, two concepts it sees as being closely connected.

Olivier Blum, Chief Executive Officer of Schneider Electric, says: "Energy technology means leading the convergence of electrification, automation and digital intelligence."

This approach underpins Schneider Electric's mission to use technology to create more efficient systems for its clients.

As AI matures, Schneider Electric is changing its focus from isolated automation projects towards developing fully integrated systems.

Schneider Electric has implemented what it terms a convergence strategy, allowing buildings, data centres, factories, infrastructure and grids to function as interconnected, software-defined ecosystems.

AI integration and data strategy

Philippe Rambach, Schneider Electric's Chief AI Officer, views AI as a necessity in the effort to address 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's AI strategy is applied across three key areas: enhancing internal productivity, augmenting its product offerings and creating new value.

Internally, Schneider Electric processes around 7.5 million customer service tickets each year, with AI now used to automatically analyse and route requests that were previously handled manually by employees.

To facilitate this, Schneider Electric deployed Jo-ChatGPT, a secure internal application that gives employees access to generative AI while ensuring Schneider Electric's data remains within its own infrastructure.

Data quality is a critical factor in the success of these initiatives.

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".

To address this and promote the use of AI, the company established an AI Hub in late 2021 to provide governance, develop data science expertise and collaborate with business units on AI deployment.

Energy optimisation in practice

The commercial viability of Schneider Electric's strategy is demonstrated through applications like its EcoStruxure Microgrid Advisor.

This system uses AI-driven analytics to optimise decisions around energy purchasing, selling and consumption.

At Schneider Electric's research facility in Boston, an advanced microgrid featuring 1,379 solar modules generates more than 520,000kWh annually.

According to Schneider Electric, this is equivalent to removing the greenhouse gas emissions from more than 2,400 passenger vehicles.

The system not only manages the microgrid's operations but also electric vehicle charging, aiming 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."

Sustainable and responsible transformation

At the Schneider Electric Innovation Summit in Copenhagen, Schneider Electric highlighted its technology's role in accelerating business transformation.

Gina Li, Vice President for Business Development & Inorganic Growth at Schneider Electric, reflects on making the technology itself sustainable.

"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."

Olivier reiterates Schneider Electric's strategic goals in a changing global landscape.

"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.”

He also explains that the convergence of technologies "unlocks the full value of energy and resources for our customers by simplifying complexity and enabling smarter, more efficient operations across every sector".

To ensure the responsible development of AI, Schneider Electric has established separate governance and data offices, alongside creating a Digital Risk Leader role.

This structure is designed to build trust, particularly given Schneider Electric's work in critical 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."