AI Finds a Practical Role in U.S. Water Infrastructure

AI is moving beyond pilots in US water utilities, helping cut losses and improve resilience as firms like Xylem and FIDO Tech see early operational uptake

7 Jan 2026

Artificial intelligence is beginning to play a practical role in how US water utilities plan and operate their systems, as the technology moves beyond pilot projects into early operational use across parts of the sector.

Utilities face mounting pressure from ageing infrastructure, water losses and climate-related stress. While they have long collected large volumes of data from meters, pipes and control systems, much of it has been difficult to use. AI tools are now helping to convert that information into clearer signals, allowing operators to detect leaks earlier, predict equipment failures and plan maintenance before disruptions escalate.

Large suppliers are helping to push adoption. Xylem has expanded its digital water offerings, including its Vue platform, which is being used by some US utilities to support network monitoring and analytics. Industry analysts see these deployments as part of a broader shift towards more integrated digital systems, as utilities look to simplify technology stacks while extracting more value from existing data.

Specialist companies are also gaining traction. FIDO Tech’s AI-based leak detection tools have attracted interest from utilities seeking to reduce non-revenue water without major construction projects. By helping teams focus on the most costly leaks, such systems aim to deliver faster returns within tight capital budgets.

AI is also starting to influence day-to-day operations. Schneider Electric and others are working with utilities through pilot schemes and formal contracts to link predictive insights with operational controls. These efforts are intended to improve responses to extreme weather, sudden demand changes and system faults, reflecting a growing emphasis on resilience.

Significant obstacles remain. Many utilities still rely on legacy infrastructure, while cybersecurity risks and shortages of digital skills continue to slow deployment. Even so, attitudes are shifting. AI is increasingly seen less as a risky experiment and more as a practical upgrade.

As tools mature and collaboration between utilities and technology providers deepens, artificial intelligence is expected to take on a larger role in how US water systems operate, invest and plan for long-term uncertainty.