New York regulators launched an audit of utility AI use. They cited risks to critical infrastructure from growing dependency. The order requires utilities to file a full AI inventory within 60 days. Utilities must also disclose their AI governance policies and procedures. Regulators flagged hallucinations, bias, privacy and cybersecurity as key concerns. National Grid already uses AI for interconnection capacity management. Con Edison uses AI for customer service and equipment inspections. The Power Authority uses AI for drone-based vegetation analysis. The actual scope of AI use across utilities remains unclear. PSC Chair Rory Christian called AI a double-edged sword for utilities.
What changed
Utilities used AI without a required inventory or disclosed governance policies.
What it unlocks
New York utilities must now disclose all AI use cases and governance frameworks.
- 60 days to respond
- Sept. 17, 2026 audit launch
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