AI-driven optimization of energy consumption and demand response in smart homes

Due to the rapid adoption of renewable energy sources and the increasing complexity of residential electricity consumption, there is a growing need for intelligent, scalable, and context-aware energy management systems in smart homes. This paper presents an artificial intelligence (AI)-based model that integrates high-resolution household power forecasting with dynamic demand response (DR) simulations to optimize energy consumption, enhance grid stability, and support sustainable energy transitions. Using the publicly available UCI Smart Home Energy dataset, a seven-step framework was implemented, including data preprocessing, exploratory data analysis (EDA), feature engineering, and the development of various predictive models—linear regression (LR), random forest regressor (RFR), support vector regression (SVR), k-nearest neighbors (k-NN), and long short-term memory (LSTM) neural networks. Each model was evaluated under seven DR strategies to capture temporal dependencies and nonlinear load behaviors: Peak Clipping, Valley Filling, Load Shifting, Load Leveling, Time-of-Use (ToU) Optimization, Price-Based Control, and Behavioral DR. Model performance was assessed using the mean absolute error (MAE), root mean squared error (RMSE), and the coefficient of determination ( R ²). Results revealed that the LSTM model achieved the highest accuracy, with the lowest MAE (18.95 Wh), lowest RMSE (24.83 Wh), and highest R ² (0.94) under the Price-Based DR strategy. Random forest emerged as the most effective traditional model, yielding an MAE of 25.13 Wh and R ² of 0.89, particularly for Behavioral and ToU-based DR strategies. The SVR and k-NN models provided moderate accuracy, while LR performed poorly, underscoring its limitation in modeling nonlinear and dynamic energy patterns. DR simulations indicated that Price-Based, Behavioral, and ToU Optimization strategies achieved the best alignment between household loads and grid requirements while maintaining user flexibility. Visualization tools such as heatmaps, grouped bar plots, and R ² comparisons further confirmed the superior temporal modeling capability of deep learning (DL) methods. Overall, the proposed framework offers a scalable and interpretable AI-driven platform that integrates load forecasting with DR evaluation, demonstrating that DL—particularly LSTM—can substantially enhance forecasting accuracy, enable smarter DR programs, and promote sustainable energy management in smart homes.