Artificial intelligence is becoming popular among companies in the energy sector. In Q1 2024, the sector recorded a 45% surge in mentions of AI in earnings calls, even beyond firms in the tech sectors.
The overall number of times AI was mentioned in the earnings calls in Q1 topped the record in the previous quarter, Yahoo Finance reported on Monday. The report cites data from Goldman Sachs Investment Research. The increase suggests a growing interest in AI by companies across sectors.
Also Read: CEOs Rush to Mention AI in Earnings Calls, but Adoption Lags Behind
More Firms Cited AI in Q1
Following the data, companies in the information technology and communication services sectors talked about AI the most in the first quarter. Up to 87% of info-tech companies mentioned AI in their earnings calls, followed by 72.2% in the comm. services.
The dominance of these firms is not entirely surprising, given they are more involved with emerging technologies. The more interesting excerpt from the data is that different companies are beginning to talk more about AI, especially in the energy sector.
Energy Sector Saw the Largest Spike in “AI” Mentions
The energy sector saw the largest spike compared to other sectors, the data shows. More than 66% of companies in the energy space mentioned AI during their earnings calls in Q1, compared to 19.1% in the previous quarter.
Also read: AI Expected to Drive Job Creation and Salary Increases in Energy Sector
The new record could be attributed to AI firms’ growing demand for energy. Energy is critical for AI development, as AI models require significant computing power for training and running.
AI Is Placing a Huge Demand for Energy
On May 19th, Cryptopolitan reported that OpenAI’s ChatGPT consumes enough electricity to power 23,000 mid-sized US homes to answer 195 million queries from users daily.
Earlier in the month, Japan said the need for energy output in the country is expected to increase by 35% to 50% by 2050 due to AI, semiconductor factories, and data centers.
Also Read: AI Power Consumption Raises Concerns, Arm CEO Warns
Demand aside, some companies in the energy sector have also started to integrate AI-based solutions into their operations. GlobalData predicts that the global market for AI platforms in the power industry will reach an estimated $5.3 billion in 2024.
Cryptopolitan reporting by Ibiam Wayas
