I remember attending my second SWAN Conference back in 2014 in Madrid, which was themed “Smart Water – The Time is Now!” For the 150 people in the room, it was obvious the industry was ripe for a data revolution. Fast forward to 2025, and interest in smart water has rapidly grown, yet as an industry, we’re still talking about the “early adopters” vs. “late majority” of utilities harnessing big data solutions. Why is this the case? The reality is complex, but there is reason for optimism. Key trends that I see accelerating smart water adoption include performance-based contracts, inclusive industry collaboration, and adaptive data management.
The water sector is unique. I once heard a utility manager state, “We’re the only industry which asks our consumers not to buy our product,” referring to conservation efforts. In addition to constrained budgets, utilities must also navigate stringent regulations while balancing deteriorating infrastructure, an ageing workforce, and increasing customer demand. Furthermore, they must confront the impacts of climate change, which, in many ways, is really water change. Scarcity and flooding can cause unpredictable shifts in water availability and quality. Yet with proactive planning and data-driven solutions, we can better prepare, alert, and respond effectively.
Embarking on a digital transformation journey can fundamentally change how a utility operates and delivers value to customers, typically requiring an overhaul of organisational structures, governance, work processes, culture, and mindset. Gaining buy-in is critical to creating a healthy space for innovation. As a Portuguese utility director remarked, “people don’t reject their own ideas.” For example, the Brazilian utility, AEGEA, hosts workshops and develops business plans specifically designed for non-technicians. In Australia, Urban Utilities runs an “innovation lounge” where the CEO meets regularly with frontline workers to understand their challenges and hear suggestions. DC Water in the US encourages open communication and “structure without bureaucracy,” while Moulton Niguel Water District in California cultivates an open culture, with the General Manager describing “technology as a mindset.”
Embarking on a digital transformation journey can fundamentally change how a utility operates and delivers value to customers
A critical aspect of digital transformation involves overcoming the hurdles of big data management. First, utilities must decide whether to collect network data at all, often hindered by concerns about data security, ownership, and quality. Second, once they choose to collect it, they face difficulties with data transmission (like choosing the right IoT network), storage (cloud-based or on-premise), integration with legacy systems, and the lack of interoperability standards. Lastly, even when data is available, many utilities are still unsure as to how to best utilise it due to internal data silos or a lack of skilled personnel to implement and run big data processing systems. As one Swedish utility put it, “With proper metadata, I would probably have saved 500+ hours of work time in my latest machine learning projects and gotten better results.”
When purchasing data hardware, water utilities typically invest in long-term solutions. However, as soon as you own an asset, like a car or meter, the value begins to depreciate. Every sector is moving towards a service-oriented approach, enabling customers to focus on their core competencies. In water utilities, such skills don’t include replacing sensor batteries or knowing where to put a certain antenna. Yes, that’s the established way of doing things; however, just as people moved on from CDs and DVDs, water utilities will need to consider alternative approaches to directly managing assets like a flow meter, smart meter or water quality sensor.
One such approach is performance-based contracts, which can shift the risks of equipment installation, operation and maintenance (O&M), data collection, and analysis from a utility to an external technology provider. In this model, the utility only pays for their desired outcome, whether that’s acquiring the raw data, a summary report, or predictive analytics. Data quality becomes the main driver, and the supplier acts more as a partner, co-creating value with the utility. These agreements generally define service levels based on parameters like data availability or system uptime, with potential financial penalties for poor performance.
Data quality is always key, especially with the rise of generative AI solutions. In Stanford University's 2024 “AI Index Report,” the share of survey respondents using generative AI in at least one business function more than doubled from 33% in 2023 to 71% last year. AI can greatly enhance utility performance, but it must be guided by proper checks and balances to ensure responsible and secure use. As an Australian utility stated, “Operational Teams running control systems have an appetite to build on ‘traditional AI’ machine learning, the challenge is to collaborate with IT teams on data architecture, cybersecurity and software selection.”
AI can greatly enhance utility performance, but it must be guided by proper checks and balances to ensure responsible and secure use
Unlocking the potential of AI is significant; however, the bigger question remains: how can traditional utilities embrace innovation when they are still stuck in neutral or even going in reverse? We need more top-down investment and regulatory incentives to encourage utilities to change, but can we truly rely on this alone? It is more likely that utilities will need to work with what they have. It’s also important to recognise that the onus doesn’t rest entirely on utilities – industrial and agricultural users consume far more water than residents. To move forward, we need to better engage all water users, as well as involve local regulators and the public, who are most impacted.
At SWAN – the Smart Water Networks Forum, we believe in “transforming water, together.” No single organisation can solve the global water crisis. To unlock the full value of digital transformation, we need to bring everyone to the table – utilities, solution providers, and industry experts to openly share their experiences, raise awareness, and help others avoid past mistakes. We also can’t overlook small communities, rural systems, and developing countries, which may be eager for smart water solutions but unsure where to begin. It may sound cliché, but the future of smart water must be inclusive.
To truly scale smart water initiatives, we need to get back to the basics and clarify the “how-to” value of digital transformation. That’s why SWAN is launching a new “Adaptive Data Management” Group to tackle core issues like data literacy, standardisation, cybersecurity, business continuity, and innovative business models. We plan to cover such challenges as how to handle imperfect data and the best strategies for training and empowering teams to address cyber threats. This community, along with each of SWAN’s other technical groups on topics like smart metering and energy efficiency, will tailor content to support utilities at varying levels of digital maturity, as well as different roles within utilities, from operators to CIOs.
Over my 12 years at SWAN, I’ve heard many inspiring stories and come to realise that technology is only one piece of the puzzle. Real change depends on people, processes, and, most importantly, building trust. That is why it’s encouraging to see concepts like collaborative procurement, open data, and open vendor networks gaining momentum. These ideas help organisations share resources, reduce costs, and speed up innovation, while also fostering the transparency and accountability needed to build lasting trust.
Bridging the digital divide requires more than just technology and automation. We need to honestly assess what worked, what didn’t, and actively seek ways to do things differently. By focusing on people and processes, simplifying the value, and meeting utilities where they are, we can create a truly bright smart water future.
