The power and utility sector, the backbone of modern life, is facing a crossroads. As global energy demand is projected to surge by 30% to 76% by 2050, the sector’s internal operations, particularly financial and accounting (F&A) processes, must evolve to keep pace. The U.S. alone expects power use to reach around 4,189 billion kWh in 2025 and 4,278 billion kWh in 2026. Legacy systems and manual processes, once the norm, are no longer sufficient to meet these growing demands.
The current landscape is fraught with inefficiencies. Nearly 47% of energy and utility companies still rely on spreadsheets for ESG and financial data management, leading to data silos, inconsistent reporting, and low confidence in data collection and analytics. Only 36% of utilities feel confident in their ESG reporting, highlighting a significant gap in data management and reporting capabilities.
In this dynamic environment, automation and artificial intelligence (AI) are emerging as critical tools for transformation. More than half of utility-sector CFOs are expected to cut selling, general, and administrative (SG&A) expenses while managing large capital projects. Automation can help bridge the gap between growing complexity and constrained resources, positioning finance as a strategic partner to the business.
Leading energy enterprises are already reaping the benefits of automation in three key areas:
1. **Centralize & Standardize**: By unifying financial frameworks and data models, companies can reduce duplication, simplify compliance, and create a single source of truth. World Fuel Services, for instance, centralized its F&A operations across more than 200 entities, reducing the time required for SOX audit support by 50% without compromising compliance.
2. **Automate at Scale**: AI is accelerating tedious processes such as reconciliations, journal entries, and intercompany transactions. This not only shortens close cycles but also reduces manual errors and audit risks.
3. **Enable Real-Time Visibility**: Continuous access to performance and variance data allows finance teams to identify risks and opportunities earlier, enabling proactive decision-making and greater agility in a volatile market. Anglo American, for example, overhauled its finance systems to streamline ESG reporting and intercompany transactions, improving both speed and accuracy.
As global energy demand continues to surge and regulatory expectations intensify, the power and utility sector must move beyond reactive reporting to proactive planning. Finance teams must become strategic enablers of operational resilience and long-term growth. By investing in intelligent automation and integrated financial systems, organizations can gain the agility to navigate disruption, optimize capital allocation, and meet stakeholder demands with confidence.
The future of energy isn’t just about generating more power; it’s about empowering finance to help lead the charge. As Tammy Coley, Chief Transformation Officer at BlackLine, puts it, “The status quo—fragmented systems, spreadsheet-heavy workflows, and manual processes – is no longer sustainable. Finance teams must now become strategic enablers of operational resilience and long-term growth.”
This shift towards automation and AI in the power and utility sector could spark a broader trend across industries, encouraging other sectors to rethink their internal operations and embrace technology-driven transformation. Moreover, as energy companies become more adept at managing data and reporting, they may set new standards for transparency and accountability, influencing regulatory frameworks and stakeholder expectations. The ripple effects of this transformation could reshape the energy landscape and beyond.