Aug 11, 2025

How AI and Workforce Innovation Are Reshaping the Energy Sector

Written by Heath Woodruff, Head of Energy Practice

How AI and Workforce Innovation Are Reshaping the Energy Sector

At inSpring, we’re always keeping an eye on key trends affecting our workforces, ready to adapt and refocus as sectors face new challenges. Energy, particularly oil and gas, has long been considered one of the bedrocks of the US economy, but even this industry is being reshaped by seismic workforce shifts driven by AI and automation. Additionally, the energy demand has never been higher, and so the demand for scalable, skilled workforces has never been greater.

An Evolving Industry Brings Fresh Challenges

Standardization

Systemically, energy field operations face a number of challenges, especially when it comes to standardization. The rapidly changing technical environment and seasoned employees nearing retirement have led to a significant gap in standardizing skills and competencies required to excel in the workforce. Best practices have been lost as knowledge is passed down on crinkled paper and word of mouth. There is a clear need to capture processes, standardize roles, and onboard and enable resources as they are hired or promoted to improve overall productivity.

Digital Transformation

With the introduction of new technologies and equipment brought in to optimize oil and gas production, workers, old and new, are often forced to learn in the field. With no formal training, workers are turning to YouTube videos. That’s not just inefficient, it’s a serious compliance and safety risk.

To keep up with rising demand for energy, these rapid changes are also forcing operations and HR to make quick decisions: fire and rehire to close the skills gap or invest in upskilling and reskilling the current workforce? Both approaches require balancing hiring time + costs, productivity, attrition, training and development investment, and more.

Training Required

To combat this lack of standardization and digital transformation, there’s a need to adapt training models toward a new generation of on-the-job learners. From tenured vets to high school graduates, the energy sector requires a flexible workforce willing to learn as new technologies come down the pipeline. Leaning into this trend can prevent planned and unplanned attrition of longtime employees and provide better career roadmaps.

That said, many companies face internal limits. We’re seeing more energy companies seek outside agencies, like inSpring, to help facilitate and tailor training programs to prepare and upskill their existing workforces. The proper adoption and implementation of AI will be essential to optimize training processes, save money, and align with the inevitable federal regulations.

Skills-Based Career Development

As the demand for skilled labor goes up in the presence of massive transformation, the supply of skilled talent is going down. This has sparked conversations around the evolving role of education in the energy sector, specifically the need for degree-based hiring. 

This mindset shift opens the door for a broader range of talent who can be trained in specialized, high-paying roles without a conventional degree. It also reflects a broader industry movement where lifelong learning and upskilling are valued as much as formal education.

Attraction & Retention in Rural America

The energy sector is often deeply rooted in rural regions, but attracting and retaining talent in these areas remains an uphill battle. Beyond geographic hesitations, young workers want to see clear progression pathways, transparency around wages, and long-term growth potential. Without these, it’s easy to lose them to more urban, tech-forward industries.

One solution is to build place-based training programs that reflect the realities of rural work. That means modern tools, flexible access (like mobile learning), and early exposure to energy careers in local high schools. When workers see a future and a roadmap, they’re more likely to stay and invest in their careers.

Michael Dean, energy executive and current SVP and CIO at PROENERGY, adds:

“Attracting and retaining young talent, especially in remote energy locations, is increasingly challenging due to demanding schedules, safety concerns, and the industry’s shifting dynamics. Success hinges on customizing how we recruit, train, and engage employees speaking directly to their learning styles, aspirations, and the desire to make a meaningful impact and shape the future of the world we live in.”

Demand on the Rise

As mentioned, energy demand has never been higher. Yes, there are more homes, businesses, and cars in need of energy. But for the first time, we’re seeing the impact of data centers and AI on power generation. AI appears to have a multiplier effect that the energy sector isn’t prepared for. 

This spike in energy consumption is creating an equally steep demand for talent, especially in skilled field operations and energy infrastructure. Career progression pathways, ongoing competency and skills gap analysis, upskilling, and being open to multiple and unique talent pipelines, like US-based and US-educated international talent, will be critical in the coming years. 

inSpring is at the cutting edge of partnering with companies to help navigate these transformative and demanding times. Workforce development, from beginning to end, is our game. We’re here for the companies asking hard questions and ready to build long-term solutions. If your team is navigating change, let’s talk about what’s next.

Heath Woodruff is the Head of the Energy Practice and National Partnerships Director at inSpring. Heath is based in Alabama, but you'll find him coast to coast at energy and workforce conferences and board rooms across the country, building an unmatched network of innovative leaders in the space. Heath has built his career across a number of notable higher education and workforce organizations over the years, including a period as Interim Campus President for Florida Technical College. Heath earned his JD from Birmingham School of Law and his BA in Political Science and History from Huntingdon College.

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