AI and the Digital Water Revolution

AI and the Digital Water Revolution

Vanessa van Rossum, Principal Consultant, Isle Northern Europe

A Rapidly Expanding Market

Artificial Intelligence (AI) is no longer a distant promise. Rather, digital water is a transformative force revolutionizing the global water sector. As utilities grapple with escalating challenges like water scarcity, climate change, and aging infrastructure, AI is emerging as a critical enabler of smarter, more sustainable water management.
From predictive analytics to real-time leak detection, AI applications are driving operational efficiency, cost savings, regulatory compliance and enhanced customer satisfaction. In 2024 alone, the market for AI in water reached USD 7.5 billion, underscoring its pivotal role in the sector’s future.

Enabling Sustainable Water Management

Beyond operational gains, AI is helping utilities meet environmental goals by optimizing water usage, reducing waste, and minimizing projects’ environmental footprints. The evolution of Reactive and Limited Memory AI has already made a significant impact in water management, enabling more accurate demand forecasting, water quality monitoring, and efficient distribution.

Yet despite its clear potential, AI adoption within the water sector remains uneven. Utilities face a number of barriers, from fragmented data and legacy IT systems to concerns around cybersecurity and public trust.

Introducing the AI Horizons Partnership

Peer-to-peer learning and shared experience can be powerful tools for overcoming these challenges. That’s the idea behind Isle’s AI Horizons Partnership Project, a new initiative designed to help utilities navigate the evolving AI landscape Launched on March 19, the project brings together a diverse network of utility professionals across the USA and Europe. Nearly 200 participants from 20 different utilities joined the kickoff session, eager to explore the real-world AI use cases and implementation pathways.

The project offers:

● A comprehensive overview of AI maturity in the water sector
● Curate insight into leading-edge solutions
● Peer-based learning from early adopters
● Guidance on cybersecurity, vendor access, and governance
● A frank look at risks, such as over-reliance on AI and proprietary software
transparency

What Utilities Are Saying

Early feedback shows a wide range of AI readiness across the participating utilities. While most are not yet using AI in core operations (see Fig. 1), nearly 50% expressed optimism about its future potential. Many are experimenting with AI in document management or enterprise data systems.

There is, however, still considerable uncertainty about future applications of AI. Figure 2 highlights, many participants responded with “No Idea” or “Other” when asked about their long-term AI plans. For many, AI remains part of a broader R&D agenda or innovation roadmap.

Looking to the future

The high participation in the AI Horizons Partnership Project reflects growing interest, but also underscores the need for support, insight and practical tools. That’s where Isle’s broader innovation programs come in.

Take the Trial Reservoir program, Isle’s flagship platform for piloting new technologies. In 2022, a Trial Reservoir pilot in Australia enabled Xylem to test-drive the Transcend Design Generator (TDG), a powerful cloud-based tool that automates conceptual design and proposal workflows. The trial resulted in a 50% reduction in turnaround time for creating wastewater treatment proposals and a pathway to global design standardization across Xylem’s offices.

Revolutionizing the Future of Digital Water with AI

At Isle, we’re committed to helping the sector move from curiosity to capability by demystifying AI, building trusted networks, and delivering proven results through real-world pilots.

Whether you’re just starting your AI journey or looking to scale existing capabilities, AI Horizons and the Trial Reservoir offer actionable pathways to smarter, more sustainable water management.

Interested in learning more? Contact Vanessa van Rossum at [email protected].
To explore the Trial Reservoir, please contact Jo Burgess ([email protected])