The future of water is digital, and it is here. Amidst the noise of the latest new tools for the industry, some key trends stand out.
Smart meters as a multifaceted solution. Meters are essential to utilities. Smart meters, when implemented properly and integrated into business processes, can and have proven to offer significant benefits to utility operations. In recent years, we have seen a big smart metering push—particularly Advanced Metering Infrastructure (AMI)—in countries like the U.K., Spain, and Italy to monitor water consumption with more granularity and reap other benefits such as leak detection.
Beyond billing, AMI has the potential to be a broader data management platform. Arcadis recently completed a comprehensive study with 15 North American water agencies as a part of a Water Research Foundation project to detail these possibilities. During the project, utilities expressed interest in common applications like leak detection and nonrevenue water management. Beyond that, there were also blue sky discussions about integrating AMI with SCADA for water quality and conservation management, and integration with operational data to create a digital twin.
Navigating the promises of artificial intelligence. AI is the topic du jour in all corners of the economy and our lives. The U.S. is the latest country to launch a national AI strategy to stay on the cutting edge of AI development, while the private sector simultaneously innovates at a breakneck pace. Water utilities have been relatively slow to buy into the hype. According to the latest American Water Works Association (AWWA) 2025 State of the Water Industry report, AI and machine learning ranked 7th out of 9 innovations of interest.
Utilities generate an immense amount of data that is a prime opportunity to implement AI for high levels of data analysis and insight
There is hesitation, but at the same time, there is also curiosity. Utilities generate an immense amount of data that is a prime opportunity to implement AI for high levels of data analysis and insight. DC Water in the U.S., for example, has been a leading risk taker, experimenting and piloting AI applications.
Adopting AI won’t be easy. It requires cleaning and organising data, establishing strict protocols around transparency and governance, and retraining staff. But it will be worthwhile. AI is here to stay, and utilities that fail to explore its potential risk falling behind.
More vulnerabilities, more security. A big part of digitalisation is building an ecosystem. But with more connected devices, the number of entry points and vulnerabilities for exploitation also increases. Current geopolitical tensions have led to a significant rise in malicious activity targeting water utilities. These attacks range from small rural utilities to large corporations like American Water. In February 2025, U.K. water supplier Southern Water reported spending £4.5 million recovering from a ransomware attack, covering expenses for cybersecurity experts and dark web monitoring.
Complacency can be lethal, and leaders recognise that. According to the AWWA 2025 State of the Water Industry report, cybersecurity has climbed to 8th place from 10th in 2024 and 2023 in terms of the top issues facing the water sector.
Utilities are going to have to start investing more directly in cybersecurity. At the same time, vendors must not only secure their products at launch but also be able to adapt to evolving threats. On the regulation side, the EU has been proactive with new regulations on cybersecurity requirements for utilities and vendors; other countries like Australia are passing similar laws. In contrast, the U.S. has been slow to implement relevant legislation.
It is an exciting time to be in the water industry with the immense amount of innovation happening every day. While the industry remains risk-averse, it is evident that it is taking steps to embrace new solutions.