How Duke Energy’s CIO Is Harnessing Digital and AI to Power the Future Grid

From IT Leadership to Grid Transformation: A CIO’s Evolution

Richard Donaldson’s quarter-century tenure at Duke Energy has positioned him uniquely to lead one of America’s largest energy providers through its most significant technological transformation. As Senior Vice President and Chief Information Officer, Donaldson oversees a digital ecosystem that must remain perpetually operational for the 8.2 million customers depending on Duke’s services across six states. “In our world, ‘always on’ isn’t just a slogan—it’s the fundamental expectation of every household and business we serve,” Donaldson emphasizes., according to technology trends

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The Architecture of Reliability: Managing Complexity at Scale

Donaldson’s domain encompasses an astonishing technological landscape: approximately 1,400 business applications, infrastructure spanning from fiber networks to cloud data centers, and generation capacity equivalent to 55 nuclear reactors. His organizational structure deliberately mirrors Duke’s business units, with dedicated leaders for generation and renewables, distribution and transmission, and traditional IT operations. “This alignment ensures our technology strategy directly supports our energy delivery mission,” he explains.

What makes this technological orchestration particularly challenging is the vertical integration of Duke’s operations. The company manages everything from power generation through transmission and distribution, creating interdependencies that demand seamless coordination. Cybersecurity, led by CISO Martin Strasburger, operates as a separate but tightly integrated function. “We work in lockstep,” Donaldson notes, “because in critical infrastructure, security cannot be an afterthought.”

The New Energy Demand Paradigm: Utilities as Growth Companies

Utility companies are experiencing a phenomenon largely absent for decades: substantial growth. “We’ve transitioned from stable utility to growth company,” Donaldson observes, citing population migration to the Southeast and the explosive expansion of data centers as primary drivers. The scale of this new demand is staggering—a single hyperscale data facility can consume as much power as an entire nuclear reactor.

This growth creates both challenge and opportunity. “Optimizing existing assets becomes increasingly valuable,” Donaldson explains. “A one percent efficiency gain across our generation and transmission systems delivers significant additional capacity at a fraction of the cost of building new infrastructure.” Advanced data analytics and modeling enable Duke to extract maximum value from every component, from individual smart meters to multi-gigawatt power plants.

Redefining Customer Experience in the Digital Age

Duke’s customer experience transformation began around 2015 with a fundamental realization: customers primarily interact with their utility during billing cycles and power outages. “We discovered that transparency matters more than restoration speed,” Donaldson reveals. “Customers prefer consistent communication during outages, even if restoration takes slightly longer.”, according to industry analysis

This insight prompted a radical shift in benchmarking. Duke now measures its digital experience against industry leaders like Amazon and banking apps rather than traditional utility competitors. “Our customers expect the same level of personalization and responsiveness they receive from digital natives,” Donaldson states. “We must demonstrate that we know them and can anticipate their needs through responsible data use.”

AI Implementation: From Cautious Experimentation to Strategic Deployment

Duke’s artificial intelligence journey began modestly in 2017 with predictive models analyzing weather-normalized meter data to identify malfunctioning equipment and potential energy theft. The generative AI explosion accelerated this trajectory, but Donaldson maintains a pragmatic perspective. “AI isn’t an easy button,” he cautions. “Its value depends entirely on data quality, process design, and governance.”

The company deliberately established comprehensive guardrails before scaling AI applications, determining approved tools, human oversight requirements, and protocols to prevent model drift. “We went slow to earn the right to go fast,” Donaldson explains. This measured approach has yielded more than 50 generative AI use cases across field operations, customer service, and internal IT functions, delivering tangible benefits in reduced manual effort and accelerated insights.

Cultivating Organizational AI Capability

Donaldson recognizes that technology adoption requires addressing both capability and comfort. “People either don’t understand AI or fear it,” he observes. His team focuses on solving business problems rather than pushing technology for its own sake. “If AI helps, we use it. If simpler solutions work better, we choose those instead.”

To build organizational confidence, Duke provided early access to generative AI tools for all IT staff, encouraging experimentation and skill development. “We told our team this is their new reality and encouraged them to find those killer prompts that transform workflows,” Donaldson says. Design thinking workshops help business units identify opportunities where AI can deliver meaningful impact, balancing individual productivity tools with cross-functional solutions.

The Data Center Boom: Dual Transformation Driver

The simultaneous expansion of data centers and AI capabilities creates a unique convergence for energy providers. “Being a CIO at an electric utility today is like catching lightning in a bottle,” Donaldson reflects. “The technology wave transforming our operations is simultaneously reshaping the energy market we serve.”

This convergence drives unprecedented demand for both electricity and connectivity, prompting discussions about data centers developing their own generation, nuclear plant restarts, and massive fiber network expansion. “The critical question,” Donaldson poses, “is whether industry appetite will align with practical reality over the coming years.”

Strategic Principles for Sustainable Transformation

Donaldson distills Duke’s approach to three core principles that ensure technology investments deliver measurable value:, as as previously reported

• Business problem first: Technology must address specific operational challenges or opportunities
• Governance and guardrails: Responsible innovation requires clear boundaries and oversight
• Incremental progression: Transformation occurs through sequenced steps rather than revolutionary leaps

The Through Line: Building Tomorrow’s Grid While Powering Today

Duke Energy’s transformation represents a deliberate sequence rather than a single transformation event. “We’re modernizing operations, enhancing customer communication, leveraging digital tools to optimize assets, and preparing for unprecedented load growth—simultaneously,” Donaldson summarizes. “We avoid chasing shiny objects in favor of building sustainable capacity for future demands while maintaining reliable service today.”

After nearly 25 years with the company, Donaldson’s motivation remains fundamentally connected to Duke’s mission: “We deliver energy safely and reliably every day while preparing for a dramatically different energy future. Understanding both the company’s pulse and its purpose enables us to build what comes next without compromising what matters now.”

For organizations navigating similar transformations, the Forum on World Class IT provides valuable insights into balancing innovation with operational excellence in complex infrastructure environments.

References & Further Reading

This article draws from multiple authoritative sources. For more information, please consult:

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