Water industry trends: AI and digital technologies supporting transformation
Across Australia and around the world, water utilities are harnessing digital technologies, including AI and Machine Learning to support transformation in this sector.
Customer experience platforms, digital twin, and artificial intelligence are no longer theoretical innovations; they are practical tools delivering measurable outcomes for utilities and the communities they serve.
Within the Water Industry, AI presents opportunities at every stage of the water lifecycle, including:
- Catchment management – satellite imagery and AI to monitor land use, runoff risks and assess the condition of reservoirs and dams after natural disasters such as floods.
- Treatment plants – predictive dosing to optimise chemicals and reduce energy use.
- Distribution networks – early leak, burst and blockage detection and prevention, condition assessment and predictive demand balancing.
- Customer service – generative AI to deliver personalised recommendations, proactive engagement, elasticity in customer response during incidents and 24/7 support.
- Incident management – real-time immersive technology and computer vision, used to detect foreign and unexpected objects, helping to improve operation centres’ efficiency through a unified platform.
- Regulation and compliance – automated reporting, assessment and monitoring to ensure assurance at scale.
NCS Australia and VicWater: Strategic partnership for data and AI
VicWater: Bringing innovation and AI to the water industry
VicWater is driving an exciting new initiative called ‘In-Stream’. This is part of VicWater’s Intelligent Water Networks (IWN) program, to drive strategic collaboration between private and public sector collaboration. It aims to develop a co-creation ecosystem that works to future- proof Victoria’s water sector. It also helps build its capability and capacity to rise to current and future challenges.
‘In-Stream’ (VicWater major innovation program of which NCS Australia is a founding member) brings together water executives, water utility operational and digital teams, leading innovative private sector organisations, researchers, universities, regulators and policy makers and champions of change. In a 12-month cycle, they engage in cross-sector co-creation and collaboration to actively generate real, fit-for-purpose solutions to the opportunities and challenges facing the Victorian water industry.
NCS is partnering with Vic Water on the In-Stream Innovation Program (2025/26) for the focused stream of Intelligent Asset Management. This involves applying intelligent insights into asset management platforms.
This stream will lay the foundations for MVP and prototyping of a specific water sector use-case that will then enable AI and digital technologies and project accelerators to bring benefits and efficiencies to Victorian Water Authorities. All this is done while maintaining strong security standards and fostering trust in this emerging technology within the water sector.
NCS Australia’s support for the In-Stream program has a high focus and drive to be innovative, while understanding the importance of security in the regulated environment that the Water Authorities must operate in.
NCS Australia continues to invest in the water industry and in Victoria during this transformative time in the sector. We are encouraged by what we see and have been directly involved in, through the In-Stream journey and partnering with VicWater IWN, on data and AI initiatives.
This is a good example of genuine commitment from industry, the peak body and partners working closely together through the co-creation process — from innovation and concept to design and solution outline and then to the MVP/prototype stage.
The pragmatic and practical approach that VicWater IWN applies to In-Stream ensures that the In-Stream team members stay aligned. Their hard work provides the Victorian Water Authorities with support in the form of the MVP for the prioritised use-case, which then in turn will support greater data insights from their asset management platforms.
Predictive analytics, digital twin and Machine Learning
Several water utilities across Victoria are undergoing digital transformation and IT/OT integration journeys.
Digital twin provides valuable analysis for water utility managers and insights for optimising infrastructure operations and planning for long-term impacts. This capability allows water utilities with the capability to explore and visualise emerging consumption patterns and their effects on the functioning of water systems and can provide predictive analytics for asset maintenance.
Predictive resilience is supported by digital twin, enabled by sensors, IoT devices, and AI-driven analytics. This allows utilities to monitor asset conditions in real time and forecast when intervention is required. By detecting anomalies early, operators can intervene before failures occur, reducing unplanned downtime and extending asset life.
The benefits extend well beyond reliability. Predictive approaches cut operational expenditure, reduce after-hours callouts, and improve workforce safety by lowering the need for urgent field interventions.
AI training and knowledge sharing
It is inherent in the human condition that people fear what they don’t understand. One of the blockers to the sector experimenting and adopting AI at scale is AI literacy. This initiative is focused on uplifting awareness, understanding and the opportunity that AI presents for the water sector, and to support the sharing of knowledge and ideas for AI enablement. This will help to build skills on the development of AI use cases and provide greater insight on the value AI can create and deliver for the water sector.
AI training offers utilities many advantages, including personalised learning experiences, increased efficiency, and enhanced engagement, and data-driven insights, ultimately transforming the learning landscape.
Some examples
- Data-driven insights - AI can analyse vast amounts of data to identify trends and patterns in learner performance. This information can be used to refine training programs, ensuring they remain relevant and effective.
- Personalised learning paths - AI enables the creation of tailored learning experiences allowing training programs to adapt to the learning styles of each participant, ensuring that they receive the most relevant content at the right time.
- Increased efficiency - AI tools can automate various administrative tasks, such as enrolment, reporting, and grading, which reduces the workload for instructors and allows them to focus on more strategic aspects of training.
By integrating AI into training programs, organisations can create a more efficient, engaging, and personalised learning experience that ultimately leads to better outcomes for both employees and the organisation.