DOI: https://doi.org/10.36719/2789-6919/57/264-268
Sureyya Kamilova
Azerbaijan State University of Economics
Master's student
https://orcid.org/0009-0003-6050-709X
kamilova.surayya.bahruz.2024@unec.edu.az
Analysis of Artificial Intelligence-Based Digital Transformation Directions in the Energy Sector of Azerbaijan
Abstract
The energy sector plays a vital role in ensuring economic development and sustainability, especially in resource-rich countries such as Azerbaijan. In the context of increasing energy demand, environmental challenges, and the global transition toward cleaner energy systems, the adoption of advanced technologies has become essential. Artificial Intelligence (AI) is a key driver of this transformation, offering capabilities in data analysis, automation, and intelligent decision-making. This study analyzes the main directions of AI-based digital transformation in Azerbaijan’s energy sector, focusing on areas such as smart grids, predictive maintenance, energy production optimization, and demand-side management. It also evaluates the current level of digitalization and identifies major challenges, including insufficient digital infrastructure, limited availability of high-quality data, shortage of skilled professionals, and cybersecurity risks. The findings indicate that although initial steps have been taken, AI integration remains at an early stage. However, its effective implementation can significantly improve energy efficiency, reduce costs, and enhance system reliability. A comprehensive strategy involving infrastructure development, human capital investment, and supportive regulatory frameworks is essential for accelerating digital transformation in the sector.
Keywords: artificial intelligence, energy sector, digital transformation, energy efficiency, Azerbaijan, smart energy systems