Duke Energy’s Digital Chief Reveals AI Strategy for Power Grid Modernization

Digital Transformation at Scale

Duke Energy’s chief information officer Richard Donaldson is steering one of America’s largest energy companies through a comprehensive digital and AI transformation, according to recent reports. With nearly twenty-five years at the company and nine months as CIO, Donaldson leads technology strategy across Duke’s vast operations spanning generation, transmission and distribution across multiple states.

Digital Transformation at Scale
Utility Industry Enters Growth Phase
Customer Experience Revolution
Measured AI Implementation
Building Organizational AI Capability
Energy and Technology Convergence
Strategic Principles for Transformation

Sources indicate the scale of Donaldson’s responsibility is enormous, covering approximately 1,400 business applications and infrastructure ranging from fiber networks to cloud data centers. “Our job is simple in concept but difficult in execution,” Donaldson stated in the report. “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.”

Utility Industry Enters Growth Phase

Analysts suggest the utility sector is experiencing unprecedented growth after decades of stability. “We’re a growth company, which is new for this industry,” Donaldson observed. The report indicates population increases in the Southeast and the explosion of data centers are driving this demand, with single hyperscale facilities capable of drawing a gigawatt of power – equivalent to one nuclear reactor’s output.

Meeting this demand requires both building new generation and optimizing existing assets. Donaldson explained that data analytics and modeling help understand how to optimize everything from individual meter usage to power plant production. “If we can squeeze one percent more efficiency out of a plant or a line, that’s a win,” he said. “It’s not free, but it’s a lot cheaper than building new generation.”

Customer Experience Revolution

Around 2015, Duke Energy fundamentally reimagined its approach to customer service, according to the report. Donaldson admitted that for a long time, customer experience wasn’t the primary focus. “That changed when we realized customers think about us at just two points: when their bill comes and when the power goes out.”

The company discovered that customers value transparency even more than restoration speed during outages. “People would rather be out longer and get consistent updates than be restored faster and left in the dark about what’s happening,” Donaldson noted. Today, Duke reportedly benchmarks itself against digital leaders like Amazon and banking apps rather than just other utilities.

Measured AI Implementation

Duke’s AI journey began in 2017 with predictive models using weather-normalized meter data, but accelerated with the generative AI explosion. The company now has more than 50 generative AI use cases in production, according to the report. However, Donaldson cautions against seeing AI as a magic solution. “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 AI guardrails, determining approved tools, human oversight requirements, and measures to prevent model drift. “We went slow to earn the right to go fast,” Donaldson stated. The approach appears to be yielding results across field operations, customer service, and IT functions.

Building Organizational AI Capability

Introducing AI across the enterprise requires addressing both capability gaps and fear, the report suggests. Donaldson’s team focuses on 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 and runs design thinking workshops to help business units identify opportunities. According to Donaldson, half of current use cases come from tools boosting individual productivity, while the other half address departmental or cross-functional challenges.

Energy and Technology Convergence

The AI surge is transforming both technology operations and energy markets simultaneously. “Being a CIO at an electric utility right now is like catching lightning in a bottle,” Donaldson observed. “For once, the technology wave that changes the business also changes the very market we serve.”

The report indicates enormous demand for electricity and connectivity is driving discussions about data centers building their own generation, restarting nuclear plants, and massive fiber expansion. The key question, according to Donaldson, is whether “the appetite match reality over the next few years.”

Strategic Principles for Transformation

Donaldson summarized Duke’s approach through three guiding principles focused on delivering reliable service while preparing for future demands. The transformation, he explained, “isn’t one big leap. It’s a sequence” involving modernizing operations, improving customer communication, leveraging digital tools and AI, and preparing for unprecedented load growth.

After nearly a quarter century at Duke, Donaldson’s motivation remains anchored in the company’s core mission. “I know this company’s pulse and purpose,” he stated. “Our mission is to deliver energy safely and reliably, every day, while getting ready for a very different energy future.”