Grid Modernization and AI in Utilities: Lessons from DistribuTECH

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The 2026 annual utility transmission and distribution event DistribuTECH reinforced that North American utilities have moved beyond conceptual grid modernization. The sector is now operating in a world characterized by load growth, aging infrastructure, distribution energy expansion and the impact of AI. In an industry facing rising regulatory scrutiny, utilities are prioritizing resilience, reliability, cybersecurity and affordability.  

Across sessions and executive discussions, the dominant theme of the event was operational scalability and reliability. Utilities shared candid lessons from advanced distribution management systems (ADMS) and distributed energy resource management systems (DERMS) deployments, AI pilots and grid modernization programs. The message was consistent: digital grid platforms are advancing rapidly, but enterprise operating models, data governance frameworks and workplace capabilities are not evolving at the same pace. The challenge is no longer whether to modernize, but how to digitize across IT, OT and field operations. 

When it comes to cybersecurity and resilience specifically, utilities are considering how and when to shift from perimeter defense to ecosystem risk management. As utilities integrate distributed resources, third-party platforms and cloud-based analytics, they are moving risk management out of silos. Regulatory defensibility, affordability and demonstrable controls are becoming board-level priorities. 

The exhibition hall at DistibuTECH reflected a maturing vendor landscape. Providers and hardware and software vendors emphasized interoperability, modular architectures and real ROI through cost savings and other improvements to business metrics that enterprises care about, such as resiliency and reliability. Pilots are a thing of the past. Utilities are demonstrating greater rigor in evaluating scalability, integration complexity and total cost of ownership. The market is moving from experimentation to disciplined modernization. 

Ultimately, DistribuTECH served as a barometer for where the utilities industry is headed. Leading utilities are differentiating themselves not through ambition, but by being strategic in how they deliver work, being disciplined in how they allocate capital, and being realistic in how they manage change and keep the commodity affordable for consumers. Utilities need to ensure that they adequately support their digital investments with right-sized governance, workforce training and holistic strategy. 

ISG helps utilities navigate the changing supplier and technology markets. Contact us to find out how we can get started.  

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About the authors

Korey Barnard

Korey Barnard

As the leader of the ISG Energy & Utility Practice for the Americas, Korey brings over 20 years of extensive experience in advisory and management roles. His strong analytical, communication and evaluation skills enable him to swiftly grasp his clients’ needs and provide effective guidance and recommendations. Korey is an experienced advisor in the development and evaluation of complex global service delivery alternatives. He possesses comprehensive expertise across various evaluation domains, including front-end strategic analysis, contract structuring and negotiation, service transition management, and financial management. Throughout his career, Korey has collaborated with numerous global and regional clients across North America, Europe, Asia Pacific, and Latin America, across a diverse array of industries. 
Jon Brock

Jon Brock

Mr. Brock is an internationally recognized expert on best practices in utility business process and technology, with extensive experience in helping top global companies redefine themselves. Jon’s expertise spans a wide range of disciplines, including strategic planning, business development, operations, process re-engineering, organizational restructuring, benchmarking, regulatory/testimony, financial analysis and strategic alliances. ​
Kimberly Tobias

Kimberly Tobias

Kimberly has responsibility for business development and relationship management for the Eastern US in the Utility and CPG & Retail industry verticals. With experience as both a client and an advisor, Kimberly has a broad base of knowledge to assist clients, from assessing their current operations, developing their future state strategy and implementing that strategy to governing their ongoing operations.