Can AI Make Water Smarter? Xylem Thinks So

Xylem pivots to AI-driven water tech, selling global assets to fuel U.S. smart utility growth.

8 Oct 2025

Xylem is placing a big bet on artificial intelligence to define the next era of water management. On October 2, 2025, the global water technology firm announced the sale of its international metering business outside North America to investment firm Aurelius. The move frees up capital to fuel Xylem’s push into digital platforms, predictive analytics, and intelligent network solutions across the U.S. and Canada.

Analysts say the deal signals more than a strategic shuffle. It marks a pivot toward the data-driven future of water. With aging infrastructure and tightening regulations straining utilities, Xylem sees an opening to lead with AI, IoT, and smart diagnostics that can detect leaks, balance pressure, and forecast maintenance before problems escalate.

According to Bluefield Research’s 2025 Smart Water Outlook, the U.S. market could swell into a multi-billion-dollar field by 2030 as cities modernize their systems with AI-powered insights. “Companies investing in intelligent networks and actionable data will shape the next decade of water innovation,” said one analyst.

By shedding non-core operations, Xylem is narrowing its focus to where technology can deliver the most impact, enhancing efficiency, reducing waste, and improving reliability. Aurelius, meanwhile, inherits a strong international metering base, positioning it to compete and innovate abroad.

The transition is not without challenges. Regulatory approvals, integration hurdles, and customer adoption will all test Xylem’s timing. But industry observers see the decision as a confident step toward a smarter, more sustainable water future.

In an era of rising scarcity and swelling demand, Xylem’s message is clear: the next frontier of water management will not be about scale, it will be about intelligence.