Crucial Role of Foundation Models in Enhancing the Interaction of AI and Power Systems: Achieving Integrated Frameworks

The rapid emergence of large-scale generative artificial intelligence (GenAI) systems, or foundation models (FMs), presents a dual challenge and opportunity for global energy systems. While driving unprecedented computational demand and a sharp increase in electricity consumption for both training and inference, FMs also introduce significant volatility and unpredictability into power loads. This necessitates a fundamental re-evaluation of short-term grid operations and long-term infrastructure planning. This article argues that the same advanced AI capabilities responsible for this energy disruption can also be leveraged to develop smarter and more resilient energy management solutions. We propose an integrated framework where FMs serve as tools for optimizing data center energy efficiency and enhancing grid control, advocating for a converging research frontier that integrates AI, power systems, and market design to navigate the energy implications of advanced AI sustainably.