California is set to become the first US state to leverage generative AI for managing power grid outages, marking a significant milestone in utility tech modernization. The California Independent System Operator (CAISO) will pilot Genie, an AI software from OATI, to automate and optimize real-time outage analysis. Traditionally, CAISO engineers manually scan outage reports and enter data into the grid system—a process that is both time-consuming and fragmented across departments. Genie uses generative AI to consolidate keyword scans, generate proactive reports, and potentially automate decision-making for grid operations. If successful, this could pave the way for broader automation and integration of AI across the grid, enhancing efficiency, reliability, and resilience. Other grid operators, including PJM and ERCOT, are also exploring AI solutions, while international examples like Australia show how AI-driven automation can optimize distributed energy resources. As AI’s role in the energy sector expands, the focus is shifting from managing AI’s energy demands to harnessing its potential to modernize and fortify grid infrastructure.

Key Points: • California’s CAISO to pilot Genie, a generative AI tool, for real-time power outage management. • Genie automates outage report analysis, replacing manual, labor-intensive processes. • Broader adoption could enable autonomous grid operations and improved data-driven decision-making. • Other US grid operators and Australia are advancing similar AI-driven grid modernization initiatives. • The shift signals a new era where AI not only consumes energy but actively strengthens grid resilience and operations.