ISG 2025 Provider Lens Assesses Utility AI Modernization, Names Nine Market Leaders

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ISG published its 2025 Provider Lens Power and Utilities report covering 35 providers in four quadrants and ranking nine firms—including Accenture, Capgemini and IBM—as leaders across all segments. The report highlights increasing utility spending on AI-driven grid modernization, DERMS and predictive maintenance, boosting demand for ISG’s advisory services.

1. AI Adoption Fuels Utility Modernization

Information Services Group’s (III) 2025 ISG Provider Lens® Power and Utilities Industry — Services and Solutions report reveals that over 85% of North American utilities are deploying AI, generative AI and machine learning to shift from reactive to predictive grid operations. Use cases include outage and storm forecasting, predictive maintenance and field workforce optimization, which have collectively reduced manual intervention by 30% and cut average service restoration times by 15%. These advances support decarbonization targets while preserving reliability and affordability under growing regulatory and cost pressures.

2. Comprehensive Market Analysis and Methodology

The report evaluates 35 service providers across four quadrants: Enterprise Asset Management; Process and Customer Experience Management; Smart Metering and Grid Modernization; and Technology, Transformation and Consulting. Data for the analysis was collected through quantitative surveys, executive interviews and ISG’s proprietary benchmarking database. The methodology combines empirical data with insights from ISG’s 1,600 global advisors to deliver a nuanced view of vendor capabilities and market trends.

3. Leading Providers and Rising Stars

III’s research identifies Accenture, Capgemini, Cognizant, Deloitte, HCLTech, IBM, Infosys, TCS and Wipro as Leaders in all four quadrants. Hitachi Digital Services and PwC achieved Leader status in three quadrants each, while Tech Mahindra led in two. CGI, Concentrix, Cyient, EY and LTIMindtree were named Leaders in one quadrant apiece. Kyndryl, Sutherland and Tech Mahindra earned Rising Star recognition, reflecting robust portfolios and high future growth potential. In customer experience, Capgemini secured the ISG CX Star Performer accolade with the top satisfaction scores in ISG’s Voice of the Customer survey.

4. III’s Market Position and Investor Implications

As a Nasdaq-listed advisory firm founded in 2006, III serves over 900 clients, including 75 of the world’s top 100 enterprises. Its proprietary data and AI-centered research position it at the forefront of technology services. With a workforce of 1,600 professionals, III continues to expand its provider-lens research into new geographies. Investors should note III’s recurring subscription revenue from reports and advisory services, its leadership in a high-growth segment driven by digital transformation budgets estimated at $60 billion for utilities by 2026, and its competitive moat built on exclusive market data and global advisory capabilities.

Sources

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