This strategic position paper by ETIP SNET, the European Technology and Innovation Platform for Smart Networks for Energy Transition, explores how artificial intelligence (AI) and generative AI (GenAI) can support Europe’s move to a decarbonised, decentralised and digitalised energy system. AI can optimise grid operations, improve forecasting of renewable energy, enable predictive maintenance and demand response, and strengthen cybersecurity. GenAI adds synthetic data generation, support for complex decisions, and better collaboration between people and AI. Realising this potential requires regulatory clarity, better access to data, skills, digital infrastructure, common standards and trust. The paper proposes a phased roadmap, from building foundations (0–2 years) to scaling (2–5 years) and full integration (5+ years), with recommendations for policymakers, grid operators, technology developers and academia.