Dive Brief:
- The New York Public Service Commission last week launched an inquiry into public utility use of artificial intelligence, noting that AI systems “create risk for organizations” but are also increasingly used to perform basic tasks.
- The Sept. 17 order requires electric, gas and water utilities to respond within 60 days with “a written inventory report that describes all use cases of AI systems in their operations.”
- Consolidated Edison, which serves New York City, said it uses AI for a range of uses, including customer service and system inspections. “As technology evolves, we will continue to evaluate opportunities,” a spokesperson said in an email to Utility Dive.
Dive Insight:
Public utilities are increasingly using AI systems for day-to-day operations, and New York regulators are concerned they are “susceptible to hallucinations, algorithmic biases, transparency issues, data privacy concerns, misconfiguration errors, cybersecurity attacks, and functional brittleness.”
“These potential risks may have negative consequences for the safety and reliability of New York’s critical infrastructure,” they said.
The PSC’s order directs utilities to file “a complete inventory” of all AI use cases in their operations and “disclose their policies, procedures, and protocols” around the burgeoning technology. The commission said it will “evaluate those procedures and protocols for adequacy and robustness against commonly accepted AI Governance frameworks.”
The commission’s order defines an “AI system” as a machine-based system that “can, for a given set of human-defined objectives, make predictions, recommendations, or decisions influencing real or virtual environments.”
New York utilities are already utilizing AI systems in various ways, including model outage predictions and electric usage. National Grid has deployed a system known as GridCARE to help free up interconnection capacity for large-load customers, regulators pointed out. The New York Power Authority has used AI to analyze drone-captured data for enhanced vegetation management.
Con Edison told Utility Dive the utility is using AI “to improve customer service, proactively identify potential equipment issues before they affect customers or public safety, and to strengthen our inspection and mapping capabilities.”
But more broadly, regulators noted “the actual extent and scope of AI systems in New York utility operations remains unclear.”
“The rapid evolution of AI is a double-edged sword for utilities,” PSC Chair Rory Christian said in a statement. “While AI can be a powerful tool that can result in cost efficiencies and improved operations, it also presents serious risks that must be evaluated and addressed appropriately.”
