Better customer engagement. Lower costs.

Brazilian energy giant CEMIG cuts expenses by 30% with IBM’s agentic AI solutions

Water gates controlling the flow of water through a dam
Meeting the needs of a diverse customer base through accessible digital services

Companhia Energética de Minas Gerais S.A. (CEMIG), one of Brazil’s leading energy providers, faced the challenge of delivering a comprehensive and accessible customer experience to their expansive and diverse customer base of 9 million individuals. The company encountered gaps in service quality across digital and traditional channels, particularly in rural and underserved areas where digital literacy and infrastructure vary widely.

To ensure high service standards and inclusivity, CEMIG carried out a competitive process to identify the right strategic partner. The goal was to transform their customer engagement model by creating a seamless, engaging and efficient digital experience that could adapt to the varying preferences and comfort levels of their customers.
30% decrease in OPEX 20 point increase in Net Promoter Score
Our collaboration with IBM was a strategic leap toward future-ready operations. By embedding AI into our customer journey and unifying digital channels like WhatsApp, our mobile app, and online portal, we’ve built a scalable model that meets today’s needs and anticipates tomorrow’s expectations. This transformation has significantly improved customer satisfaction—with a 20-point rise in NPS—and enabled us to reduce expenses by 30%.
Reynaldo Passanezi CEO CEMIG
Delivering inclusive, AI-powered customer experiences at scale with IBM Consulting

To devise and execute a comprehensive digital transformation strategy, CEMIG partnered with IBM Consulting®, integrating cutting-edge technologies and best practices to optimize customer experiences and operational efficiency. One of the key initiatives was the development of AI-powered virtual assistants to provide seamless digital support to CEMIG’s vast customer base. Central to this transformation was the use of IBM® watsonx.ai®, which helped with the development of intelligent virtual assistants and the integration of open-source large language models (LLMs) such as Llama and Hugging Face. These AI capabilities were further enhanced by NeuralSeek—leading to more accurate and context-aware responses.

IBM also assisted CEMIG in merging multiple digital platforms, such as their mobile application, online portal and Meta-owned WhatsApp, to offer a unified and user-friendly experience for customers navigating CEMIG’s digital landscape. These tailored solutions helped CEMIG overcome the challenge of serving their diverse customer base, resulting in a more inclusive and accessible customer experience.
Enhanced customer experience and future-ready operations with IBM Consulting

After their digital transformation in collaboration with IBM Consulting, CEMIG witnessed a substantial improvement in customer engagement metrics, with 82% of customers utilizing digital channels for service requests. Simultaneously, traditional services, such as in-person interactions at CEMIG’s physical branches, continued to thrive, catering to specific audience segments.

CEMIG’s implementation of AI-powered solutions and process optimization strategies yielded the following outcomes:

  • Improved NPS: A 20-point increase in Net Promoter Score, reflecting heightened customer satisfaction and loyalty

  • Reduced operational costs: A 30% decrease in operational expenses (OPEX), driven by enhanced process efficiency and automation.

  • Regulatory compliance: A 90% reduction in financial compensation values related to the claims process.

  • Digital engagement: An increase of 1.1 million monthly WhatsApp messages, with a retention rate of 65%, showcasing the success of digital channel integration.

  • Agent efficiency: A 20% reduction in the Average Handling Time (AHT) of agents at their physical branches, enabling them to manage customer interactions more efficiently.

  • IVR retention: A 65% retention rate within the Interactive Voice Response (IVR) system, highlighting the effectiveness of digital channels in delivering a seamless customer experience.

  • Self-service expansion: An addition of 44 new self-service options, fostering customer autonomy and reducing manual interventions.

As CEMIG and IBM continue their strategic partnership, they remain dedicated to driving continuous digital innovation, ensuring the provision of advanced services and experiences to the residents of Brazil.
About CEMIG

Founded in 1952, Companhia Energética de Minas Gerais S.A. (CEMIG) is one of Brazil’s largest power utilities, serving over 9.35 million customers across 774 municipalities primarily situated in the southeastern region of Brazil, in the state of Minas Gerais. With a vast network of over 574,000 km, CEMIG is Latin America’s largest electricity distribution provider. The company, known for their commitment to innovation and sustainability, has invested significantly in smart grids, digitalization, and distributed generation. CEMIG Tech initiative fosters the adoption of emerging technologies such as AI, electric vehicles and blockchain.

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