Schneider Electric's Plan to Electrify, Automate & Digitise

At Schneider Electric, AI is regarded as essential to the energy transition. 

For decades, the French energy technology company has been streets ahead of the competition in terms of both innovation and sustainability – two things that it sees as inextricably linked.

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

It is clear that Schneider's leadership team views automation, digitisation and electrification as its most useful tools in the fight against climate change, using them to deliver smarter, more efficient and more sustainable products for its clients.

Now, with AI reaching a maturation point, Schneider is moving beyond isolated automation projects are towards fully integrated systems.

The US$34.2bn company has established what it describes as a convergence strategy, enabling buildings, data centres, factories, infrastructure and grids to operate as software-defined ecosystems.

Philippe Rambach, the firm's Chief AI Officer, sees AI as essential in the race to mitigate 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."

AI spans internal operations to customer products

Schneider's AI strategy operates across three domains: internal productivity, product augmentation and new value creation.

The company processes approximately 7.5 million customer service tickets annually, with AI now automatically analysing and routing requests that employees previously handled manually.

Schneider deployed Jo-ChatGPT, an internal application providing employees with secure access to generative AI while keeping data within company infrastructure.

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".

The company established an AI Hub in late 2021 to provide governance, build data science expertise and partner with business units to deploy AI across the organisation.

Energy optimisation demonstrates commercial viability

Schneider's EcoStruxure Microgrid Advisor uses AI-driven analytics to optimise energy buying, selling and consumption decisions.

At Schneider's research hub in Boston, an advanced microgrid incorporating 1,379 solar modules generates over 520,000 kilowatt-hours annually, equivalent to removing greenhouse gas emissions from more than 2,400 passenger vehicles.

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."

The system manages microgrid operations and electric vehicle charging to reduce carbon intensity during peak demand periods.

“The world is changing faster than ever," says Olivier.

"Energy, digital technology and geopolitics are reshaping the systems that power our lives. The challenges are complex, but the opportunities are extraordinary.

“Energy technology means leading the convergence of electrification, automation, and digital intelligence. We invent the technology that makes the new energy landscape possible – enabling buildings, data centres, factories, plants, infrastructure and grids to operate as open, software-defined systems."

Schneider's Innovation Summit

At Schneider Electric's Innovation Summit in Copenhagen on 22-23 October, the company framed its technology approach around accelerating business transformation.

There, Gina Li, VP for Business Development & Inorganic Growth at Schneider Electric, has been reflecting on how to make the technology as sustainable as possible.

"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."

Oliver described the strategic intent: "This unlocks the full value of energy and resources for our customers by simplifying complexity and enabling smarter, more efficient operations across every sector."

Schneider has established separate governance and data offices alongside a Digital Risk Leader role to ensure responsible AI development.

Philippe said: "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."