New York audits utility AI use, cites risk in ‘growing dependency’

New York regulators have opened an inquiry into how gas, electric, and water utilities are using artificial intelligence to run their operations. The state's Public Service Commission issued the order on Sept. 17, telling utilities they have 60 days to file a written inventory of every AI use case in their operations, along with their policies for managing the technology. Regulators said AI can bring cost savings and better operations, but also carries risks like errors, bias, privacy problems, cybersecurity vulnerabilities, and system glitches that could affect the safety and reliability of the state's power, gas, and water infrastructure.

Utilities in New York are already using AI in various ways. Con Edison, which serves New York City, uses it for customer service, spotting equipment problems before they cause outages, and improving inspections and mapping. National Grid uses an AI system to free up capacity for large customers connecting to the grid, and the New York Power Authority uses AI to analyze drone data for managing vegetation near power lines. Regulators said the full scope of AI use across the state's utilities is still unclear, which is part of why they're asking for a complete accounting.

This is a regulatory and oversight story, not a program change. It doesn't affect rebates, rates, or upgrades available to homeowners right now. It simply means New York is taking a closer look at how the companies that deliver your power, gas, and water are relying on AI behind the scenes, and what safeguards they have in place.