Artificial intelligence (AI) offers utilities a powerful way to innovate and enhance customer value. However, operating within strict regulatory environments requires balancing immediate AI benefits with system stability. The dual innovation strategy addresses this challenge by enabling utilities to quickly implement targeted AI solutions for operational gains, while gradually modernizing legacy systems.
Rethinking Innovation in a Mission-Critical Industry
In the utility sector, innovation is essential. But unlike other industries, utilities operate in highly regulated, mission-critical environments where any disruption can have widespread consequences. Leaders are being asked to modernize fast, embrace artificial intelligence (AI), and deliver new value to customers and stakeholders, all while maintaining stable operations.
This raises a complex question: how do you pursue the transformative potential of AI without destabilizing the foundation that keeps your business running?
The answer lies in dual innovation, a strategy designed to help utilities unlock AI’s benefits rapidly while modernizing legacy systems at a sustainable pace. This approach acknowledges that short-term AI wins and long-term platform evolution must happen in parallel to evolve with confidence and cohesiveness.
What Dual Innovation Means
In simple terms, dual innovation allows utilities to move at two speeds. On one hand, it encourages rapid experimentation with AI to improve customer experience, increase operational efficiency, and automate decision-making. On the other, it promotes a deliberate and structured transition away from legacy systems that limit scalability, data integration, and real-time responsiveness.
This shifted mindset allows utility leaders and teams to use AI before a complete core system overhaul. They can begin creating value immediately, while gradually building the modern digital infrastructure needed to support broader transformation.
Why a Dual Approach to AI Is Especially Relevant
Unlike digital-native industries, utilities often rely on fragmented and legacy systems, siloed data, and rigid processes. These realities make it difficult to implement AI on a scale. Yet, waiting for a full system replacement before embracing AI is a lost opportunity.
Dual innovation enables utilities to act now, deploying AI where it can have an immediate impact. This might include smart agents that triage service requests, machine learning models that detect anomalies in consumption patterns, or natural language tools that assist contact center agents.
For instance, utilities can run lightweight AI pilots, such as smart routing algorithms, without having to dismantle existing systems. These use cases deliver value quickly and build internal confidence around the potential of AI.
These models guaranteed 25% to 30% reduction in time and kilometers driven, improving crew performance and wellbeing, and saving operational costs.
In parallel, utility leaders can begin modernizing the digital core by moving from hard-coded legacy CIS systems to flexible, AI-enabled platforms that unify customer, billing, metering, and service data. This evolution doesn’t happen overnight, but with the right architecture, it can evolve in sync with business needs rather than in conflict with them.
This two-pronged strategy is particularly effective in the utility context, as it minimizes operational risk while accelerating the adoption of new capabilities and achieving business outcomes. It recognizes that meaningful change doesn’t have to be disruptive; it just must be strategic, creating a powerful engine for growth and resilience.
The Role of Modern Platforms in Enabling Dual Innovation with AI
Technology alone doesn’t drive transformation, but the right platform can make it possible. At Open, we’ve designed Smartflex to support dual innovation by embedding AI across the customer and operational journey, while also serving as a scalable, future-proof foundation.
Utilities that use Smartflex are already experiencing the benefits of this approach. They can automate routine tasks, deploy AI agents for customer interactions, identify consumption anomalies in real time, and reduce the cost and complexity of operations. And because the platform is modular and continuously updated, it supports incremental migration away from legacy systems without disruption.
With Smartflex, our clients don’t have to choose between modernizing their CIS or adopting AI. They can do both, in the right sequence and at the right pace.
One example of leveraging smart agents, which we are currently developing, is to support customer service representatives in dealing with customer disputes. Imagine this: our agent analyzes the message, generates a solution, and automatically triggers activities to support it in no time.
Embedding agents into utility operations creates real business outcomes and improvements.
Building a Utility That’s Ready for What’s Next
AI will continue to reshape the industry, whether through enhanced customer expectations, regulatory shifts, or the need for greater grid intelligence. However, embracing this future requires more than a bold vision. It requires a practical roadmap that balances innovation with operational realities. Dual innovation offers that roadmap. It empowers utilities to deliver results today while laying the foundation for tomorrow. It reduces risk, accelerates time to value, and fosters a culture that’s not just open to change but built for it.
If you’re ready to explore how your utility can adopt a dual approach to AI, combining quick wins with sustainable transformation, we invite you to connect with us. At Open, we’re helping utilities around the world move smarter, not just faster.
Ready to elevate your utility capabilities?
Contact us today to discover how Smartflex can transform your operations and drive future-ready growth.
