Water Utilities Turn On the Digital Tap

Firms turn to AI and analytics to cut costs and improve customer service

11 Jun 2025

US water utilities are expanding their use of digital technologies to improve customer service and address rising operational demands, as more consumers expect quicker updates and clearer billing information.

A report by research group J.D. Power found that 28 per cent of water utilities lack a mobile application, while nearly a third of existing digital platforms fail to meet basic functionality standards. Companies that adopt advanced digital tools have reported stronger customer satisfaction scores, increasing pressure on the sector to modernize.

Technology providers are playing a key role in this transition. Oracle Utilities, in a June 2025 release, introduced artificial intelligence tools for identifying usage anomalies and improving meter data management. A separate update in April added real-time notifications on outages, maintenance schedules and service changes.

SAP, the German enterprise software company, announced a partnership with Metito Utilities in February to implement its S/4HANA Cloud and SAP Analytics Cloud platforms. The collaboration aims to simplify utility operations and provide faster, more responsive services.

Infrastructure software group Bentley Systems has expanded its offering of digital twin technology, allowing utilities to create real-time models of their networks. The system supports predictive analytics, enabling companies to identify faults before they affect customers and manage water resources more efficiently.

Utilities deploying these tools report reduced operating costs, quicker account activations and better engagement with customers. Transparent digital services also allow for clearer communication around price adjustments, helping to build trust and reduce complaints.

However, gaps remain in rural regions, where digital infrastructure is weaker. Cybersecurity risks are also increasing as utilities expand their online services. “Digital upgrades are no longer optional. They are essential for efficient, high-quality water service,” a senior SAP executive said.

Despite these challenges, utilities continue to invest in technology to meet growing customer expectations, signaling a longer-term shift towards modern, data-driven water services across the US.