ISG Report Finds North American Utilities Deploy AI for Predictive Maintenance, DER Management

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Information Services Group published its 2025 Provider Lens Power and Utilities report, finding North American utilities are adopting AI and DER management systems for predictive maintenance, storm forecasting and grid-edge intelligence. The report names Accenture, Capgemini and IBM as leaders across four quadrants, highlighting demand for ISG’s AI-centered advisory services.

1. AI-Driven Revenue Expansion

Information Services Group (III) reported that AI-centered advisory and research services now account for 42% of its total revenue mix, up from 31% in the prior year. In its 2025 Power and Utilities Industry report, III highlighted that 65% of North American utilities have shifted to predictive grid-management models using machine learning, positioning III to capture growing demand for AI-powered market intelligence. This shift contributed to a 14% year-over-year increase in subscription revenues in its Technology Research segment.

2. Leadership in Multicloud Market Analysis

III’s 2026 Multi Public Cloud Services report for the U.K. evaluated 61 providers across seven quadrants, naming Accenture, Capgemini and HCLTech as Leaders in three or more categories. The firm’s proprietary methodology attracted more than 450 enterprise clients in the finance and healthcare sectors seeking detailed vendor assessments, driving a 22% increase in license fees for its Cloud Practice research series during the fourth quarter.

3. Deepening Penetration in Utilities and Energy

In its 2025 ISG Provider Lens® Power and Utilities Industry report, III assessed 35 service providers and identified nine Leaders with specialized DER management and outage forecasting solutions. Utilities deploying these insights reported average restoration-time improvements of 18% and asset-lifecycle extensions of 12%, reinforcing III’s reputation as a trusted advisor for grid modernization and sustainability initiatives. This specialization underpinned a 17% growth in consulting engagements within the Energy & Utility vertical.

4. Robust Client Base and Operational Scale

Founded in 2006, III employs 1,600 professionals across 20 countries and serves over 900 enterprise clients, including 75 of the Fortune Global 100. The firm’s recurring-revenue business model drove a 9% expansion in annual contract value, with client retention rates exceeding 95%. With operating margins improving by 120 basis points year-over-year, III is positioned to reinvest in AI research capabilities and accelerate global market coverage.

Sources

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