Artificial intelligence (AI) is rapidly reshaping the global energy landscape, and Azerbaijan is emerging as one of the countries where this transformation is both economically significant and strategically relevant. Traditionally known as an oil and gas exporter, Azerbaijan is now integrating AI into its hydrocarbon sector to modernize production systems, optimize resource extraction, and improve infrastructure management. This process is led primarily by the State Oil Company of the Republic of Azerbaijan (SOCAR), in cooperation with international technology and energy partners.

However, the impact of AI in the energy sector is often misunderstood. While some narratives suggest that digitalization reduces dependence on fossil fuels, the current global trend indicates a more complex reality: AI is simultaneously improving efficiency in oil and gas operations while also increasing overall energy demand. The expansion of data centers, cloud computing, and machine learning systems has become one of the fastest-growing sources of electricity consumption worldwide. In this context, Azerbaijan’s strategy reflects not only technological modernization but also a broader adaptation to the changing structure of global energy........

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