Energy firms accelerate AI adoption, but legacy systems limit returns: KPMG

Energy, natural resources and chemicals companies are rapidly accelerating artificial intelligence adoption, but outdated legacy systems and governance challenges are preventing many from unlocking the full value of their technology investments, according to KPMG's Global Tech Report 2026 released on Monday. 

The report, based on a survey of 258 technology leaders across 22 countries, found that 69% of energy-sector executives now consider AI a technology investment priority, while 41% said their AI strategies are fully funded and on track for scaling. Yet nearly 60% acknowledged that legacy technology systems remain a significant barrier to achieving maximum returns from digital investments.

KPMG said the industry is moving beyond experimentation towards enterprise-wide deployment of AI. The share of companies still operating AI projects in pilot stages without clear returns is expected to plunge from 29% currently to just 2% over the next year.

"AI is moving from limited pilots to wider enterprise deployment," the report noted, highlighting applications ranging from production optimisation and predictive maintenance to smart grid management and back-office automation.

Despite growing adoption, financial returns remain uneven. While around four in ten energy executives reported returns exceeding 200% on technology investments, a majority of 57% said they were only breaking even, generating returns of 91-100% on their digital spending.

"There is no longer a question that there is significant ROI to be achieved from new technology. However, what executives are asking themselves now is: how and what do we prioritize to unlock transformational returns?" said Anish De, Global Head of Energy, Natural Resources and Chemicals at KPMG International.

Data quality and governance have emerged as critical enablers for the next phase of AI deployment. The report found that 42% of respondents identified improving data flows as a key priority for enhancing decision-making agility, while nearly three-quarters said the pursuit of speed and cost efficiency often forces trade-offs in security, scalability and data standardisation.

Cybersecurity is also climbing the corporate agenda. Better cybersecurity management was cited by 36% of respondents as the biggest expected benefit from achieving technology goals, ahead of operational efficiency and revenue growth.

The report further found that 96% of energy leaders believe managing AI agents will become a critical workforce skill within the next five years, underscoring expectations of increasingly hybrid human-AI operating models.

"Creating an AI culture is mission-critical. There may be resistance at some levels of the business towards AI, so it is fundamentally important to show people how AI can support what they do, rather than being a threat," De said.