Philippines, New Zealand explore AI to improve power services

MANILA — The Philippines and New Zealand are exploring how artificial intelligence (AI) can improve electricity regulation, monitor power outages, and simplify customer services as the Philippine energy sector faces growing demands for reliable and affordable electricity.

Energy officials, regulators, and technology executives from both countries discussed potential AI applications during the AI & Innovation: Executive Energy Networking Reception held Oct. 8 at the residence of New Zealand Ambassador Catherine McIntosh in Manila.

The discussions focused on using emerging technologies to strengthen regulatory oversight, improve utility operations, and make electricity-related information more accessible to consumers.

For Filipino households and businesses, these initiatives could eventually mean faster resolution of billing complaints, earlier detection of recurring power interruptions, and more efficient monitoring of electricity providers.

However, the potential benefits will depend on the accuracy of the systems, protection of consumer data, and whether utilities and regulators can translate technological investments into measurable improvements in service quality and affordability.

The event brought together representatives from the Department of Energy (DOE), Energy Regulatory Commission (ERC), and New Zealand’s technology sector to examine the role of AI and digital innovation in modernizing the Philippine power industry.

Organized in collaboration with technology firm Gentrack and New Zealand Trade and Enterprise (NZTE), the reception also provided opportunities for partnerships between Philippine energy institutions and New Zealand technology providers.

ERC Director III Heiddi Venecia R. Barrozo outlined the commission’s efforts to move beyond basic digitalization toward a regulatory system that uses data analytics and intelligent technologies to support decision-making.

Among the initiatives under development is ASK ERiC, an AI-enabled chatbot designed to help consumers and other stakeholders navigate ERC information, regulatory procedures, and public services.

The proposed platform could make it easier for electricity consumers to understand regulatory requirements and obtain information about their rights without relying entirely on manual inquiries.

The commission is also exploring AI-assisted compliance monitoring to determine whether regulated electricity providers are meeting applicable requirements.

One potential application involves agentic AI, a technology capable of performing defined tasks and coordinating workflows with varying degrees of autonomy.

Such systems could help regulatory personnel track compliance submissions, identify missing requirements, and flag potential violations for further review.

The ERC is likewise considering regulatory analytics capable of identifying patterns in electricity outages, including their frequency, duration, geographic distribution, and unusual trends.

These capabilities could strengthen oversight of distribution utilities by helping regulators identify service reliability problems and determine which areas require closer examination.

For consumers in areas experiencing recurring power interruptions, better outage analysis could support more targeted regulatory intervention and stronger accountability among electricity providers.

However, AI-generated findings would still require verification and appropriate human oversight before being used in regulatory decisions.

As of September 2026, the ERC had 28 information systems supporting regulatory processes, consumer and stakeholder services, data management, and internal operations.

The expanding digital infrastructure provides a foundation for integrating more advanced technologies into the commission’s regulatory functions.

In May, the ERC launched ERCify, a digital platform intended to make regulatory transactions more accessible and efficient.

By August, the commission had reported 25 operational information systems, reflecting the continuing expansion of its digital services.

The ERC emphasized that adopting AI must not compromise accountability, accuracy, explainability, or information security.

The commission identified power system reliability, electricity affordability, cybersecurity, and consumer trust among its priorities for digital transformation.

These safeguards are particularly important because AI systems may process sensitive customer information, regulatory submissions, and operational data involving critical electricity infrastructure.

Errors in automated analysis or decisions could affect consumer complaints, compliance assessments, and the ability of regulators to respond to service deficiencies.

The commission’s approach therefore places emphasis on ensuring that AI tools remain appropriate for the regulatory decisions they are designed to support.

Meanwhile, Gentrack solution architect Hyun Woo Kim discussed the challenges facing electricity utilities as they navigate both the transition toward cleaner energy sources and the adoption of increasingly sophisticated digital technologies.

Kim emphasized that successful AI implementation requires technical capabilities specifically designed for the energy sector rather than generic solutions applied across different industries.

“Every country’s got its unique problem and unique way to solve that problem,” Kim said.

His remarks underscored the importance of considering Philippine regulations, electricity market conditions, consumer requirements, and operational challenges when deploying AI-powered systems.

Kim cited research published by S&P Global on March 31, 2026, showing that energy and utility companies are committing substantial resources to artificial intelligence despite uncertain short-term financial returns.

According to the research, 64% of surveyed energy and utility organizations were investing more than 10% of their total information technology budgets in AI initiatives.

However, only 43% of AI projects were considered on track to generate a return on investment within 12 months of deployment.

The figures highlight the financial risks associated with AI adoption, particularly when companies invest heavily in emerging technologies without clearly established business applications.

The S&P Global study also found that 7% of surveyed organizations were allocating more than 30% of their IT budgets to AI.

Companies with more mature AI strategies and clearer business objectives were generally more likely to report stronger financial returns from their investments.

For Philippine electricity utilities, the findings suggest that AI investments must be evaluated against practical benefits, including reduced operating costs, improved customer service, and more efficient regulatory compliance.

The financial implications are particularly relevant in an industry where technology and operating expenditures can affect overall utility costs and potentially influence charges paid by electricity consumers.

Kim outlined three stages of AI adoption in utility operations, beginning with systems that assist human customer service representatives.

These tools can help personnel retrieve account information, interpret billing records, and respond more efficiently to customer inquiries.

The second stage involves customer-facing self-service platforms that allow consumers to obtain information and complete certain transactions directly through AI-enabled applications.

The third stage involves autonomous AI agents capable of handling customer interactions and performing defined operational workflows within established safeguards.

Gentrack demonstrated potential applications involving electricity bill explanations, customer account inquiries, workflow automation, and regulatory compliance support.

These included AI tools capable of retrieving meter-reading information, assisting with billing disputes, and identifying applicable customer protection requirements.

The company also showcased low-code and no-code technologies that allow utilities to configure AI agents for particular operational needs without developing complex software systems from scratch.

Such platforms could help electricity providers automate routine processes while allowing employees to concentrate on cases requiring judgment, technical expertise, or direct customer assistance.

The applications could also be useful for distribution utilities managing large customer bases and recurring complaints involving billing accuracy, payment arrangements, and service interruptions.

However, utilities would still need clear safeguards governing data access, automated recommendations, and human intervention when AI systems encounter sensitive or disputed cases.

New Zealand Trade and Enterprise representatives reaffirmed their commitment to strengthening cooperation with the Philippines through partnerships in innovation, sustainability, and economic growth.

The collaboration points to opportunities for New Zealand technology companies to support the modernization of Philippine energy services while building commercial relationships with local utilities and government institutions.

For the Philippines, the broader challenge is ensuring that digital transformation delivers benefits beyond operational efficiency and technology adoption.

AI could give regulators better tools to monitor electricity providers and help utilities respond more quickly to customer concerns, but these improvements will need to be demonstrated through measurable results.

Ultimately, the value of AI in the Philippine power sector will depend on whether it contributes to more reliable electricity, transparent regulation, responsive customer service, and better protection for consumers.