Artificial Intelligence has the potential to solve some of the most pressing issues in the UK water sector. With its ability to predict infrastructure failures, optimise operations, and improve communication with customers, it could help utility companies meet tough new regulatory targets. And, as the sector prepares for AMP8, the opportunity to embed AI at the heart of operations has never been more compelling.
Decades of data collected from infrastructure, customer interactions, environmental monitoring, and operational systems form a rich foundation for this transformation. What’s changing now is the ability to activate that data, turning it into actions. Beyond just insights, AI can now suggest next steps in plain English - helping teams act faster, plan smarter, and embed data-driven decisions into daily operations.
AI is already helping water companies reimagine what’s possible. For example, systems that once broke down without warning can be monitored in real time, using AI to flag early signs of deterioration before they turn into expensive emergencies.
With AI and data working hand in hand, the industry can rise to today’s challenges with greater confidence, resilience, and agility
In customer services, AI can simplify the language around complex infrastructure events like storm overflows. Instead of just technical updates, customers can receive clear, human-friendly explanations of what’s happening and why. This kind of transparency is essential at a time when public trust in the industry is under pressure.
In operations, energy-intensive systems like pumps and motors can be synced and optimised in line with real-time data on energy pricing and renewable availability. The result? Lower carbon emissions, reduced bills, and better use of the resources already in place.
AI also opens new possibilities for long-term climate resilience, helping water companies anticipate vulnerabilities and strengthen networks before issues arise, from flood-prone infrastructure to assets at risk during drought.
For years, the challenge has been how to access and use information effectively; much of it lives in legacy systems, disconnected formats, or organisational silos. But that’s changing.
AMP8 will see a surge in investment focused on digital transformation. As companies prepare for AI adoption, data modernisation is becoming a top priority. That means getting years of legacy data into shape - ensuring it’s properly labelled, searchable, and consistently structured. It’s not just about traditional tabular data anymore. Documents, images, audio files, and even video are increasingly part of the picture, and all need to be governed, integrated, and made usable. This broader approach requires robust governance frameworks that support high-quality, accessible data. By improving system integration and building the right skills internally, water companies are laying the foundations for AI to deliver real value.
Adopting AI isn’t just about having the right tools - it’s also about getting the culture right. For real transformation to happen, data needs to be seen and managed as a strategic asset. That means building data and AI skills across teams and making sure efforts align with wider IT goals. Collaboration is key – not just between departments, but also by learning from others across the sector. As AI opportunities evolve, some roadmap priorities may need to shift to make sure the business is set up to take full advantage.
With water bills rising in 2025, there’s a renewed focus on value for money. AI offers a path forward - to help deliver more meaningful outcomes for customers and the environment.
Having properly governed and high-quality data in place will enable the sector to unlock AI’s potential. The benefits are clear: more efficient operations, improved customer trust, climate resilience and smarter investment decisions. With AI and data working hand in hand, the industry can rise to today’s challenges with greater confidence, resilience, and agility and build a more transparent, efficient, and sustainable future.