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NYSEG and RG&E Report Costs for AI Call System

New York utilities confirm expenses for an AI tool designed to analyze customer service interactions.

Updated on Oct. 29, 2026 in Utilities

Isometric editorial illustration showing an interconnected network of fiber-optic cables and server racks, representing complex utility data infrastructure.
NYSEG and RG&E reported $9,160 in AI token charges for their new call quality analysis system, raising transparency questions regarding utility technology expenses. AI Illustration. Upload story photo >

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NYSEG and RG&E have revealed that their new CALL IQ system, which tracks service call quality, has incurred $9,160 in AI token charges. The utilities developed this platform to coach representatives and identify unresolved customer issues.

Why it matters

The implementation of this system highlights growing corporate reliance on AI for quality assurance, though its omission from rate case filings has raised transparency questions. These utilities aim to improve service standards without allowing the software to modify customer accounts or billing records.

The CALL IQ project cost approximately $458,000, with AI token usage reaching $9,160 through October 26, 2026. The companies retain customer voice recordings for a total duration of seven years.

The players

NYSEG

This is a regulated utility company serving residential and business customers across New York state.

RG&E

This is a New York-based energy provider that offers electricity and natural gas services to consumers.

NTT Data

This is a global information technology services provider that collaborated on the development of the CALL IQ system.

Microsoft Azure

This is a cloud computing platform that provides the infrastructure required to host the utilities' AI service tools.

The details

Developed with NTT Data, the system utilizes Microsoft Azure to convert voice recordings into text for manual employee review. The tools are restricted from creating voiceprints or verifying gas meter locations and require no separate customer consent.

Timeline

  1. Q2 2026: Utilities decided to implement CALL IQ.

  2. Early August 2026: Utilities completed the project announcement.

  3. October 6, 2026: The CALL IQ system officially launched.

  4. October 26, 2026: Deadline for the reported AI token charges.

Market Landscape

This move follows a pattern set by New York Public Service Commission rate case filing regulations, as the utility project was intentionally excluded from current filings to avoid inconsistencies. It illustrates a broader push by legacy utilities to integrate modern software to remain competitive.

While customers will not see their accounts or bills modified by this AI, they remain subject to voice recording retention for up to seven years. The utilities emphasize that the software is used purely for internal coaching and identifying service quality improvements.

The takeaway

Customers should be aware that their interactions with utility support staff are being processed by automated systems to identify service trends. These recordings are kept for long-term audit purposes, even if they are not used to change specific account records.

Further reading

Learn more about the infrastructure and policies governing state energy providers at the Utilities section.

Source note: This article includes information reported by Fingerlakes1.

Live Poll

Do you trust your utility provider to use artificial intelligence when analyzing your customer service calls?