A6: Smart Grid

Mark Jaworski Cadayong

October 15, 2021

AI, a great Impact to Smart Grid

What is AI and its application?

Artificial intelligence is the simulation of

human intelligence processes by machines,
especially computer systems. Specific
applications of AI include expert systems,
natural language processing, speech
recognition and machine vision.
As the hype around AI has accelerated,
vendors have been scrambling to promote
how their products and services use AI. Often
what they refer to as AI is simply one
component of AI, such as machine learning.
AI requires a foundation of specialized
hardware and software for writing and training machine learning algorithms. No one
programming language is synonymous with AI, but a few, including Python, R and
Java, are popular.
In general, AI systems work by ingesting large amounts of labeled training
data, analyzing the data for correlations and patterns, and using these patterns to
make predictions about future states. In this way, a chatbot that is fed examples of
text chats can learn to produce lifelike exchanges with people, or an image
recognition tool can learn to identify and describe objects in images by reviewing
millions of examples.

Examples of these AI are:

• Siri, Alexa and other smart assistants

• Self-driving cars
• Robo-advisors
• Conversational bots
• Email spam filters
• Netflix's recommendations

Current Situation

The computing industry has gone through three major transitions over the last
half-century: the mainframe era; the shift to PC-server computing; and the rise of
cloud, mobile, and the Internet. Now, we’re on the cusp of a fourth transition, data-
centric computing, which will be powered largely by the increasing pervasiveness of
artificial intelligence. Spurred by a need to process a dramatic growth of unstructured
data and enabled by a drastic reduction in the cost of computing, artificial intelligence
(AI) tools are becoming more widely available through cloud platforms and open-
A6: Smart Grid
Mark Jaworski Cadayong
October 15, 2021

source software. It’s not hyperbole to say that machines will be able to program
machines in the coming years. That will unleash unprecedented efficiency gains for
data centers and allow for much broader use of AI technology. Questions about job
loss and ethics will remain a feature of the landscape for AI companies, yet it’s also
increasingly clear AI will continue to improve products and customer experiences
through personalization, create new categories of products and jobs, and enable
advances in critical areas of society, such as cybersecurity and public safety.
The reality check The common narrative is that AI’s trajectory over the next
several years will be shaped by enterprises in all industries rapidly adopting the
technology. In reality, it’s clear that large cloud service pro-Competitive
Battlegrounds Artificial Intelligence: Who Will Lead the Next Era? The focus on
enterprise AI adoption distracts from the real disruption underway, fueled largely by
cloud service providers. By Paul Renno, Jue Wang, and David Crawford 55 Technology
Report 2021 viders (CSPs) will continue to fuel the industry as both its leading
adopters and innovators, helping other enterprises customize and deploy their own
AI-powered products and services. Few companies are qualified to be leaders in raw
AI innovation. The CSPs are best positioned because of the significant head start they
have in using AI on a large scale. This is true across applications such as natural
language processing (think Amazon Alexa), image recognition and processing
(Facebook, Google), recommendation systems (Google search, Alibaba e-
commerce), vision processing in autonomous driving (Alphabet’s Waymo), and smart
cities (Alibaba City Brain, Tencent WeCity). CSPs’ cloud and digital services have
given them access to the enormous amounts of data required to effectively train AI
models. The exponential growth in the size and complexity of AI models requires AI
practitioners that can build and operate bespoke, large-scale systems. And the CSP
business model benefits from the personalization of services that AI can deliver.

How would AI impact Smart Grid?

AI has an important role to play in understanding demand and

generating predictions from non-dispatchable resources such as wind and
solar and from wholesale prices. It can also play an important role in
understanding how changes to one part of the system would affect the system,
while reducing the impact of outages and disconnections.

Reference

1. Smart Grid in Power – Thematic Research report produced by

GlobalData Thematic Research.
2. What is artificial intelligence? – Ed Burns, Executive Editor
3. Artificial Intelligence: Who Will Lead the Next Era? By Paul Renno, Jue
Wang, and David Crawford