Beyond the hype: How leading utilities are applying AI to water management

Across the water sector, utilities face a growing challenge: how to keep systems running, communities served, and trust intact as pressures intensify. Infrastructure is aging faster than it can be replaced. Nearly a third of utility workers are approaching retirement. Climate volatility is rewriting the rules for operations and planning.

Amid these challenges, a new tool is entering the conversation: artificial intelligence (AI). It is not a silver bullet, but it is helping the people who keep water systems running. Early adopters are already using AI to streamline reporting, strengthen resilience and preserve institutional knowledge, helping utilities do more with the resources they have.

In this Q&A, Austin Alexander, Vice President of AI Solutions and Impact at Xylem, shares insights from a new white paper developed with Bluefield Research on how AI is helping utilities solve real-world challenges – and why successful adoption depends as much on people and culture as it does on technology.

The pressure on utilities is real, from infrastructure strain to workforce loss. Why is now the moment to explore AI?

Around the world, utilities are being asked to do more with less – managing aging assets, tightening budgets, and a rapidly changing workforce. AI gives teams a practical way to turn the data they already have into smarter decisions, improving everything from planning and operations to real-time decision support.

With AI utilities can detect leaks before they become failures, optimize energy use, and make sense of huge volumes of disconnected data. The result is faster insight and better decisions. But technology is only part of the equation, the real impact comes from people. Change management and culture are what make innovation stick. Teams need to feel confident experimenting, learning, and using these tools responsibly.

How are utilities already using AI, and what results are they seeing?

What’s exciting is how quickly AI is moving from pilot projects to practical use. 

At Hampton Roads Sanitation District (HRSD) in Virginia, the team is using AI to anticipate and manage changing conditions across their network. It forecasts water flows before storms, balances treatment for energy efficiency, and uses digital simulations that help operators fine-tune performance in real time. These tools give staff a clearer view of what’s happening in their systems and greater confidence in how they respond.

What stands out most is HRSD’s culture. The utility has spent years investing in the digital foundations that make AI possible – from smart sensors to connected data systems – and they’ve built trust into every step. Their approach shows that AI isn’t about automation for its own sake; it’s about equipping people with the insight and confidence to deliver better outcomes for their communities.

What makes AI more than just tech hype in the water sector?

Traditional analytics can find patterns in data. AI takes the next step by turning those patterns into decision-ready insights. It can summarize complex information, simulate scenarios, and recommend actions that help utilities respond faster and with more confidence.

That translation layer is powerful for operators managing constantly changing conditions like rainfall, tides, and treatment capacity. Instead of spending hours sorting through data, they can focus on using insights to make smarter, more strategic decisions.

Ultimately, this is about supporting people, not replacing them. AI strengthens human judgment and helps utilities build more adaptive, resilient systems that perform better for their communities.

How can utilities build trust as they adopt AI, and what role is Xylem playing in that journey?

Trust has to come first. Utilities are stewards of critical infrastructure, so every innovation needs to begin with transparency, good governance, and security. Cybersecurity is a big part of that. The same tools that make operations more efficient must also protect sensitive data and the people who rely on these systems. 

At Xylem, we work closely with utilities and partners to balance innovation with protection. Building responsible innovation means collaborating with others to apply new technologies in ways that deliver practical value. For example, through our partnership with Transcend, we’re applying generative design to accelerate how utilities plan and design treatment solutions. By automating early engineering steps, we’re helping utilities respond faster to evolving needs and deliver smarter, more resilient infrastructure.

How is AI shaping the future of water management, and what should utilities do to prepare?

AI will become an essential part of how utilities operate – working quietly in the background to make systems smarter and more responsive. The tools utilities use today will increasingly connect and communicate, helping teams interpret data, anticipate issues, and act faster.

Imagine technology that predicts the impact of a storm or surge in demand, and then recommends the best way to respond. That’s where we’re headed: intelligent systems that strengthen human expertise rather than replace it.

To prepare, utilities should focus on two priorities: improving data management and empowering people. That means better data quality and collaboration across operations, IT, HR, and finance. When AI becomes part of everyone’s work, adoption is smoother and the benefits scale quickly.

How is Xylem cultivating the culture needed to make this AI vision real?

At Xylem, we often say it’s 10% technology and 90% people. AI is giving us an opportunity to rethink how we work. It helps streamline processes, capture institutional knowledge, and open new opportunities for learning and collaboration.

We’re investing in training to build AI literacy across our teams. We want every colleague to feel confident exploring what’s possible while understanding how to use these tools responsibly. That combination of empowerment and governance creates the conditions for real transformation. When people have clarity and confidence, innovation follows naturally.

Download the white paper on AI and water management

AI isn’t a future concept. It’s already helping utilities strengthen operations, build trust, and plan for what’s next. Explore more in Xylem and Bluefield Research’s white paper, Reimagining Water Management: Generative AI as a Strategic Utility Asset.