How Duke Energy’s Digital Strategy Powers Grid Reliability and AI Innovation

The Unseen Digital Backbone of America’s Energy Infrastructure

At Duke Energy, one of America’s largest electric power holding companies, digital transformation isn’t just about technology upgrades—it’s about keeping the lights on for millions of customers across six states. Richard Donaldson, senior vice president and CIO, leads this critical mission after nearly twenty-five years with the company. His perspective reveals how digital strategy and AI implementation are fundamentally reshaping energy delivery in an era of unprecedented demand.

“Our job is simple in concept but difficult in execution,” Donaldson explained. “We have to make sure every system, every application, every data stream is there when our business partners need it to keep the lights on.” This mandate covers Duke’s vast infrastructure: 55 gigawatts of generation capacity, 11 nuclear reactors, and operations spanning the Carolinas, Florida, Ohio, Kentucky, and Indiana.

Architecting Technology for a Growing Energy Demands

Utilities are experiencing something unfamiliar after decades of stability: significant growth. “We’re a growth company, which is new for this industry,” Donaldson noted. The Southeast’s population boom and the explosion of data centers are driving unprecedented electricity demand. A single hyperscale data facility, he revealed, “can draw a gigawatt of power; the same output as one of our nuclear reactors.”

Donaldson manages this expansion through a team structure that mirrors Duke’s business operations. “I’ve got leaders who own all things generation and renewables, others who focus on distribution and transmission, and a traditional IT operations team that runs our servers, databases and telecom,” he described. This organizational alignment ensures technology initiatives directly support business objectives across generation, transmission, and distribution.

Customer Experience as a Grid Reliability Strategy

Around 2015, Duke Energy underwent a fundamental shift in how it views customer interaction. “For a long time, our focus wasn’t really on the customer experience,” Donaldson admitted. “That changed when we realized customers think about us at just two points: when their bill comes and when the power goes out.”, according to market developments

This realization led to surprising insights about customer priorities. “It surprised us, but people would rather be out longer and get consistent updates than be restored faster and left in the dark about what’s happening,” Donaldson revealed. This finding transformed Duke’s approach to outage communication, emphasizing transparency over mere speed of restoration., as as previously reported

Today, the company benchmarks its customer experience against digital leaders beyond the utility sector. “Our customers don’t compare us to the power company across the street,” Donaldson observed. “They compare us to Amazon and their bank app. We have to ‘act like we know them,’ use data responsibly and create an experience that feels personal and modern.”

AI Implementation with Purpose and Guardrails

Duke’s AI journey began in 2017 with practical applications like using weather-normalized meter data to detect malfunctioning meters or potential energy theft. When generative AI gained prominence, Donaldson took a measured approach. “AI is not an easy button,” he emphasized. “Data, process design and governance determine whether you actually get value out of it.”

In 2024, Duke formalized its AI guardrails, establishing clear protocols for approved tools, human oversight requirements, and measures to prevent model drift. “We went slow to earn the right to go fast,” Donaldson explained. This deliberate approach has yielded substantial results, with the company now running more than 50 generative AI use cases across field operations, customer service, and IT functions.

Building Organizational AI Capability

Introducing AI across a traditional industry requires careful change management. “People either don’t understand it or they’re afraid of it,” Donaldson observed. His team focuses on solving business problems rather than pushing technology for its own sake. “If AI helps, great. If a script or better data gets you there faster, do that instead,” he recommended.

To build confidence, Duke gave all IT employees early access to generative AI tools. “We told our team: this is your world, get smart about it,” Donaldson said. “Everyone has a killer prompt waiting to change their day, like the way mobile check deposit changed banking overnight.” The company supplements this with design thinking workshops to help business units identify practical AI applications.

The Dual Impact of Data Center Expansion

The AI revolution is creating unique challenges and opportunities for energy providers. “Being a CIO at an electric utility right now is like catching lightning in a bottle,” Donaldson remarked. “For once, the technology wave that changes the business also changes the very market we serve.”

He sees enormous demand for both electricity and connectivity driving industry transformation. “There’s talk of data centers building their own generation, of restarting nuclear plants, of massive fiber expansion,” he noted, while acknowledging the uncertainty about how quickly these developments will materialize.

Sustainable Transformation Through Sequential Progress

Donaldson characterizes Duke Energy’s digital transformation as an incremental process rather than a single leap. “It’s a sequence,” he stated. The strategy focuses on modernizing operations, improving customer communication, leveraging digital tools to optimize existing assets, and preparing for unprecedented load growth.

After nearly a quarter century at Duke, Donaldson’s motivation remains grounded in the company’s essential mission. “I know this company’s pulse and purpose,” he reflected. “Our mission is to deliver energy safely and reliably, every day, while getting ready for a very different energy future.” This balanced approach—maintaining current reliability while building future capacity—defines Duke Energy’s measured yet ambitious digital transformation journey.

For organizations navigating similar transformations, Donaldson’s experience offers valuable insights into building world-class IT capabilities that drive both operational excellence and strategic innovation in traditional industries facing unprecedented technological change.

References & Further Reading

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