Powering Up with AI: How TNB Is Sparking a Data-Driven Energy Revolution
78.5 % of enterprises indicate that a moderate to significant investment in AI is necessary to stay competitive in their industry.
Source: 2024 AIBP ASEAN Enterprise Innovation Survey
Delivering the opening remarks for the AIBPxTNB Executive Workshop & Networking: Data & AI in Practice, and introduction to Tenaga Nasional Berhad (TNB) and the organisation’s digitalisation and technology focus in line with TNB’s broader strategy encompassing a commitment to the national energy transition roadmap, Azlan Ahmad, Chief Information Officer at TNB shared about how TNB aims to be net zero by 2050, with a particular focus on renewable energy sources. Their digital transformation is intrinsically linked to this sustainability goal, leveraging technology to support more intelligent, efficient energy infrastructure and services. The ENB Digital and Enterprise Date Governance (EDG) Groups also highlighted various initiatives supporting data and AI initiatives.
Tenaga Nasional Berhad (TNB) is a leading Malaysian utility company in Asia with an international presence in the United Kingdom (UK), Ireland, Australia, Turkiye, Saudi Arabia, Kuwait, Pakistan, and Cambodia. Within the renewable energy space, as of December 2023, TNB has a total gross portfolio of 3,119MW in Peninsular Malaysia (including 2,536.1MW of large hydro) and 1,183MW across the UK, Ireland, Australia, and Turkiye comprising mainly solar, wind, and hydro energy generation assets.
Key Highlights
Data Utilisation for AI: Focus on unlocking and utilising data to align AI initiatives with their overall business objectives. This involves structured processes for data collection, analysing and management to ensure that AI projects deliver tangible value.
Governance in Data and AI Implementation: The establishment of governance frameworks is crucial for ensuring responsible data use. This includes creating policies and guidelines that promote secure practices while mitigating risks associated with AI technologies.
Risk Management Integration: Integrating risk assessment into the AI project lifecycle is vital for balancing innovation with governance.
Cybersecurity Threat Landscape: Companies are facing increasing cybersecurity threats, especially in the past decade, necessitating the expansion of cybersecurity teams and resources.
Data Sharing and Democratisation: Encouraging data sharing across various business domains is essential for effective AI implementation. Organisations are appointing data roles and fostering a culture of collaboration to enhance data accessibility and quality.
Focus on Business Value: When evaluating AI initiatives, organisations prioritise projects based on their potential impact on growth, operational efficiency, customer experience, and regulatory compliance. This strategic approach ensures that resources are allocated effectively to maximise returns on investment.
AI for Business Use
Kicking off the discussion around AI for business use, the TNB Digital team shared about "Alignment of AI Use with Business Goals" at TNB, with key objectives include empowering employees to use generative AI safely, building an AI-ready infrastructure, and establishing governance and execution models to scale AI usage responsibly, aimed at unlocking value through a solid foundation in AI governance and execution, enhancing decision-making and operational efficiency.
Common issues faced among Malaysian enterprises include prioritisation of projects and initiatives, defining metrics for value measurement, and the complexity of scaling AI models like GPT.
Employing data and developing AI initiatives involve multiple expertise, including data scientists, data engineers, and data analysts, each with a different role in the data journey, and at the same time each crucial for success.
Source: 2024 AIBP ASEAN Enterprise Innovation Survey
The TNB Enterprise Data Governance (EDG) Department provided an overview of “Data Readiness and Organisational Readiness Through The TNB EDG Program" initiated in 2020 to address various challenges and support TNB's strategic goals. The program focuses on:
creating trusted and governed data by aligning its framework with business needs,
establishing a clear operating structure with defined roles, and
implementing comprehensive data management processes, including metadata management and data quality assurance.
Key initiatives include developing policies, providing advisory services, and managing change effectively. The program also conducts annual assessments to evaluate data capability maturity, ultimately enhancing organisational readiness and compliance with legal data governance requirements.
However, data management is sometimes less visible than digital initiatives, leading to challenges in gaining buy-in. Many struggle to see the importance of improved data practices compared to tangible data quality efforts. Building partnerships and educating stakeholders are essential for overcoming these hurdles.
The growing prioritisation of cybersecurity also reflects a broader understanding of the interconnectedness between effective data practices and organisational resilience.
The 2024 ASEAN Enterprise Innovation Survey shows a shift in the perception and prioritisation of cybersecurity within the region. A significant 39% of respondents now identify cybersecurity as a challenge to digital transformation, representing a 7% increase from 2023. This heightened awareness is further underscored by the fact that 52% of organisations now prioritise cybersecurity and data protection in their digital transformation investments, a substantial leap from a 22% in 2019.
Source: 2024 AIBP ASEAN Enterprise Innovation Survey
Cybersecurity is also of critical focus for TNB, employing a holistic approach, integrating risk assessment frameworks into their implementation processes and balancing innovation with governance.
“As a National Critical Information Infrastructure (NCII), we see cybersecurity as a key strategic risk that demands our utmost attention. Strong cybersecurity is essential for utility companies like TNB to safeguard operations, maintain public trust and ensure uninterrupted service. I’m proud that our dedication to address these threats is being fully supported. Thus, we remain focused on mitigating risks and preserving our integrity and trust.”
By adopting a comprehensive, structured approach to digital transformation, TNB demonstrates how traditional energy companies can successfully navigate the complex landscape of AI, data governance, and cybersecurity while maintaining a clear focus on business value and societal impact.
Listen to the ASEAN B2B Growth Podcast episode “Axiata Group: Driving Digital Innovation with a Robust Risk Strategy” here where Abid Adam, Chief Risk and Compliance Officer, Axiata Group Berhad, brings a distinctive viewpoint on fostering growth and innovation within highly regulated sectors. He discusses the key metrics he tracks, the difficult decisions he's faced, and the delicate balance between risk management and spearheading digital transformation in Axiata's operating markets.
Stay tuned and Register Your Interest in Getting the first copies of the Upcoming 2024/2025 ASEAN Enterprise Innovation Market Overview here.
This article was originally written and posted by Valerie Tan.
