AI and Machine Learning Applications in Predicting Energy Market Prices and Trends

The worldwide energy market is intricate and unstable, shaped by several aspects including geopolitical occurrences, supply-demand variations, and regulatory modifications. Precisely forecasting energy prices and trends is essential for stakeholders, such as energy producers, dealers, and policymakers. This study investigates the utilization of artificial intelligence (AI) and machine learning (ML) to improve energy price forecasting models. Conventional forecasting methods frequently fail to account for the dynamic and non-linear characteristics of energy markets; however, AI/ML techniques, including neural networks, decision trees, and reinforcement learning, provide enhanced prediction precision. By including external variables such as meteorological conditions and economic metrics, AI models can produce more accurate and useful insights. Case studies illustrate the effective implementation of AI in energy markets, showcasing its capacity to surpass traditional methods. This article addresses difficulties such as data quality and computing expenses while delineating potential developments in AI-driven energy market forecasts.