I Water Analytics Is Rewriting Utility Forecasting

US water utilities turn to AI and real-time data to cut losses, boost resilience, and plan for digital growth

5 Feb 2026

US water utilities are increasingly turning to artificial intelligence and real-time data to improve forecasting, reduce losses and manage growing pressure on aging networks, marking a shift in how systems are operated and financed.

Rather than relying only on physical upgrades such as pipes and treatment plants, utilities are deploying digital tools to monitor performance, anticipate demand and respond more quickly to disruption. The change is being driven by climate-related stress, tighter budgets and rising expectations for reliability.

Many utilities are now using advanced forecasting models to detect leaks earlier, limit non-revenue water and plan maintenance more effectively. What began as pilot projects is, in some cases, moving into core operational planning as confidence in the technology grows.

The trend is reshaping the market for digital water services. Companies such as Xylem have pointed to growing demand for platforms that combine forecasting, monitoring and asset management, rather than single-purpose tools. Utilities are looking for systems that can scale across networks and integrate with existing infrastructure.

Analysts see adoption accelerating over the next decade, though unevenly. Bluefield Research expects strong growth in digital water technologies across North America through 2033, as utilities face rising financial and environmental strain. Smaller operators and rural systems have generally moved more slowly, reflecting funding limits and workforce constraints.

Software and service providers are adapting their offerings accordingly. AVEVA has highlighted the role of predictive analytics in supporting broader digital upgrades, while Trinnex has promoted service-based models that allow utilities to access advanced tools without building large internal data teams.

Barriers remain. Data quality, cybersecurity risks, regulatory oversight and shortages of skilled staff will influence how quickly utilities can deploy and trust AI-driven systems. Regulators are also paying closer attention to how digital tools affect decision-making and resilience.

Even so, investment priorities are shifting. Alongside pipes, pumps and treatment facilities, utilities are increasingly spending on systems that generate and interpret data. The next phase of the sector’s development is likely to be shaped by how effectively operators turn digital insight into more reliable and resilient water services.