AI-driven Business Model of Startups in the Energy Sector

To address the transition to an electrified, decarbonized future, the integration of digital and innovative tools within the energy sector is essential. Artificial Intelligence in energy systems is poised to drive optimization and sustainability, enhancing efficiency across the board. Beyond broad process improvements across industries, the energy sector will see a transformation in the services it delivers, leading to substantial shifts in business models. Startups will play a critical role here, recognized as key drivers of innovation. An examination of cutting-edge AI-enabled applications and their potential to redefine the value proposition of startups in various energy contexts reveals a literature gap: existing research lacks a comprehensive evaluation of AI-driven business model innovation specific to the energy sector. This paper aims at bridging this gap through the analysis of AI-enabled business models of 92 startups in the energy sector, which allowed to identify five primary business model archetypes.