U.S. Wildfires: Utilities Need AI Cameras and a Strategic Procurement Plan — Now
- Utilities in the United States are rapidly adopting AI-powered cameras to detect wildfires.
- The cameras allow quick identification and response to emerging threats, minimizing damages and safeguarding communities.
- Strategic procurement of AI cameras ensures utilities achieve cost transparency, reliable suppliers, and scalable mitigation solutions.
March 04, 2025 | Procurement Strategy
Under increasing pressure over frequent wildfires, utilities across the United States are fighting back.
In California, one of the most wildfire-prone regions, utilities such as Pacific Gas and Electric (PG&E) are allocating billions of dollars to wildfire mitigation, totaling $5.5 billion since 2019. Their efforts include the deployment of advanced technologies such as AI-powered cameras and satellite systems for early wildfire detection.
Xcel Energy and CORE Electric Cooperative are implementing AI-enabled detection cameras and investing in weather monitoring systems in Colorado. These technologies were instrumental in rapidly identifying and containing recent wildfires, such as the Bear Creek Fire in 2024.
Meanwhile, Portland General Electric in Oregon has integrated AI cameras into its wildfire mitigation strategy, sharing data with emergency services to improve response times and prevent wildfires from spreading.
In Texas, Austin Energy has collaborated with Pano AI to deploy high-definition AI cameras, which monitor vast areas for smoke and other fire indicators. This approach has bolstered the state's ability to respond swiftly to emerging threats.
At the federal level, initiatives under the Bipartisan Infrastructure Law have allocated $5 billion over five years to enhance wildfire preparedness, detection, and response.
Programs like the National Oceanic and Atmospheric Administration (NOAA)’s GOES-R satellites are also equipping utilities with real-time data for early wildfire detection, helping mitigate risks nationwide, according to the U.S. Department of Interior.
Wildfire Prevention With AI-Powered Detection
To address wildfire risks, the adoption of AI-powered wildfire detection technologies has revolutionized safety protocols for U.S. utilities. These systems enable rapid identification and response to emerging threats, minimizing damages and safeguarding communities.
By improving incident response times and aligning with regulatory requirements, utilities proactively manage wildfire risks while fostering public trust. The scalability of these technologies supports adaptive strategies that evolve with escalating wildfire challenges, positioning utilities as leaders in community safety and resilience.
Building an Effective Sourcing Strategy for AI Cameras
The procurement of AI-powered wildfire detection cameras involves navigating challenges such as increasing demand, strict regulatory mandates, and dynamic project scopes.
With U.S. utilities ramping up investments in wildfire mitigation, there comes an increased risk of delays and inflated costs.
To mitigate these risks, early engagement with suppliers is critical to securing commitments and ensuring compliance with tightening fire detection and prevention standards.
Regulatory deadlines often necessitate accelerated implementation timelines to avoid penalties, safeguard infrastructure, and guarantee public safety.
1. Refine Scope and Supplier Capability
Utilities must ensure that suppliers can provide comprehensive, end-to-end solutions that include hardware, software, and related services. This might involve tasks such as site identification, analysis, audits, contracting, equipment manufacturing, and deployment processes, including testing and integration into existing monitoring systems. By consolidating these services, utilities can streamline project execution and mitigate risks tied to fragmented vendor management.
2. Define Business and Technical specifications
Hardware and software technical specifications, including data protection and risk, play a pivotal role in aligning solutions with operational needs.
Here is a non-exhaustive list of key specifications for a successful AI camera procurement program.
| Hardware | Software | Operational |
|---|---|---|
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3. Prioritize Cost Transparency
Separating equipment costs from subscription and maintenance expenses ensures financial transparency and enables better long-term budgeting.
4. Program Scalability
Consider future program growth and a supplier’s ability to meet that increase in demand, as initial needs for AI camera programs often expand with new wildfire mitigation requirements and increases in utility service territories. Also, consolidating demand across operational units provides better leverage in negotiations, particularly when committing to high-volume procurements.
5. Seasonality of Wildfires
Wildfire activity peaks in different regions, typically during summer and fall in California, Texas, and Colorado, spanning June to August. If the procurement timeline coincides with these high-risk periods, the urgency for deployment increases.
6. Incumbent vs. New Suppliers
When deciding between continuing with an incumbent supplier or engaging a new one, factors such as supplier performance, service levels, and alignment with evolving project needs should guide the evaluation. Incumbent suppliers may offer advantages in continuity and reduced transition times, while new suppliers can provide competitive alternatives or improved technology. A reliable incumbent supplier with a proven three-to-four-month installation timeline often makes direct negotiation an efficient choice.
7. Pilot Programs
Pilot programs are key to evaluating products and shaping up a wildfire detection program, and need to be part of any competitive bidding process. Pilot programs should include success metrics such as detection accuracy and alert response time.
| Procurement Elements | Direct Negotiations with Existing Vendor(s) | Competitive Bidding |
|---|---|---|
| Scope Definition | Aligned with current deployments and demonstrated performance metrics | Develop clear objectives and technical specifications for pilot programs |
| Timeline | Accelerated implementation; 3-4 months | Extended timeline; 12-18 months |
| Risk Management | Leverages established supplier performance and pre-negotiated contract terms | Comprehensive supplier evaluation, risk assessment and success metrics |
| Negotiation Approach | Direct negotiation, leveraging established relationships, volume discounts and industry benchmarks to optimize pricing and terms | Competitive bidding, to ensure market-driven pricing and enhanced solution coverage |
| Deployment Strategy | Streamlined scaling using existing infrastructure | Gradual rollout informed by pilot program outcomes |
| Key Metrics | Existing system reliability, cost reduction, contract terms | Detection accuracy, deployment speed, system integration capabilities |
Impact of AI Cameras on Managing Wildfire Risk
The procurement of AI cameras for wildfire mitigation has had a major effect on the operational resilience and safety protocols of the U.S. energy utility sector.
As wildfire risks intensify, particularly in high-threat regions, the integration of advanced detection technologies improves rapid response capabilities, protecting both critical infrastructure and surrounding communities.
For utilities, investing in these systems is a strategic risk management measure that not only meets regulatory expectations but also reinforces public safety.
Beyond compliance, wildfire mitigation efforts play a vital role in fostering community trust. Utilities can improve incident response times, minimize potential damage, and reduce economic losses by leveraging real-time monitoring and alert systems.
Author: Shashank Sawant
The GEP Energy & Utilities team is ready to support you in navigating the evolving wildfire mitigation landscape. We currently support major U.S. and Canadian utilities as part of their strategic sourcing programs. We have led wildfire mitigation and AI camera projects surpassing $100 million in spend and delivered significant value to clients with 10%+ savings.
