Why Should We Pay More Attention to Water?
Water is easy to take for granted until it is no longer there. Globally, more than two billion people already live with some form of water scarcity, and by 2030, demand for freshwater is expected to exceed supply by almost 40% (World Economic Forum, 2024). It is not just a rural or developing world problem. Industrial hubs, major cities, and agricultural regions are all facing increasing stress.
For me, this issue is not abstract. I grew up in the Philippines, where safe, reliable water was never guaranteed. Some communities relied on rationed supply; others dealt with contamination from floods, industrial discharge, or old pipes. Those experiences shaped how I see water: not simply as a utility, but as the foundation of public health, economic stability, and dignity.
The risks go beyond communities. Around 44% of companies identify water scarcity as a serious financial threat, with potential losses of up to $301 billion (World Economic Forum, 2024). Pollution, outdated infrastructure, and inefficient management only make the problem harder to solve. Yet the topic rarely receives the same attention as energy or climate headlines.
One of the most urgent levers for change is Water Quality Monitoring. It is not just about detecting contaminants; it is about creating a system that spots problems early, responds quickly, and keeps water safe and available for everyone.
What Makes the Water Value Chain So Complex and Inefficient?
From the outside, the water value chain seems straightforward: source it, clean it, deliver it, and treat it after use. In practice, my research mapping the chain shows it is a tightly linked system with critical weaknesses at almost every stage:
- Sourcing – Water is pulled from rivers, lakes, aquifers, or the ocean. Many utilities and farmers operate with outdated or incomplete data on supply levels. Shortages are often discovered only when reservoirs are already depleted.
- Treatment – Facilities clean water for drinking or industrial use. Without real-time monitoring, contamination can go unnoticed until consumers complain, forcing expensive emergency fixes.
- Distribution – Water travels through pipe networks that in many cases are decades old. Leaks and breaks waste roughly 30% of treated water globally (Statista, 2022a).
- Use – Agriculture is the largest user, and much of it still relies on inefficient irrigation. This wastes water and washes chemicals into rivers and lakes.
- Wastewater Treatment – Around 42% of household wastewater worldwide is not safely treated (Statista, 2022a), contaminating waterways and creating public health risks.
- Resource Recovery – Technologies exist to recover nutrients and energy from wastewater and sludge, but adoption is uneven. Many plants cannot make it financially viable.
The biggest problem across these stages is the lack of connected, timely, and accurate information. Without this visibility, operators cannot anticipate problems, they react after damage is done. In other industries, this level of uncertainty would be unacceptable. In water, it remains the norm. AI and technology can address these pain points, but only if deployed strategically.
How Can AI and Technology Transform Water Management?
Several companies already show what is possible with advanced monitoring and automation. Xylem integrates sensors directly into water networks, providing utilities with immediate alerts about leaks, pressure changes, or contamination. In London, this technology has reduced water loss significantly, saving both resources and millions in operational costs (Statista, 2022c).
Veolia takes a different but equally impactful approach. Its advanced wastewater treatment systems capture nutrients and energy from wastewater, turning what was once waste into valuable resources. This model not only reduces environmental harm but also creates new revenue streams (Statista, 2022c).
These are not speculative technologies, they are mature, proven, and widely deployed. The challenge is no longer proving their effectiveness but scaling them across more geographies and sectors.
This is where Artificial Intelligence, combined with IoT and advanced sensors, can accelerate transformation. Other industries such as energy and manufacturing already use AI to optimize operations in real time. Water can follow the same path. With AI-enabled monitoring and analytics, utilities and industries can detect leaks instantly, optimize irrigation based on real weather and soil data, and ensure wastewater meets safety standards before it is discharged.
From my value chain analysis, three areas stand out for AI-driven impact:
- Water Quality Monitoring – Real-time detection of contaminants before they spread.
- Agricultural Use – Precision irrigation that adjusts to crop needs and weather patterns, reducing waste and runoff.
- Nutrient Extraction – AI-guided optimization of recovery processes to maximize resource value from wastewater.
In addition to mature players, some startups are already working at scaling innovative solutions in these areas. WI.Plat uses AI for intelligent water loss management, enabling utilities to pinpoint leaks with high accuracy. Irriot offers solar-powered, wireless irrigation systems that adjust automatically to environmental conditions. Pureli develops technologies to extract lithium and other valuable minerals from brine sources, optimizing yield while reducing environmental impact.
The timing is right. Regulatory pressures on water quality and efficiency are intensifying worldwide (World Economic Forum, 2024). Public demand for accountability is rising, and the cost of deploying AI, IoT, and sensor networks is dropping.
In my view, this makes water-tech innovation one of the most compelling investment opportunities of the decade. It sits at the intersection of an urgent global need, proven technical feasibility, and strong market drivers. Solutions that can scale across the value chain, particularly those addressing high-friction points like monitoring, irrigation, and resource recovery, offer both high impact and attractive returns.
References
- Reig, P., Shiao, T., Vigerstol, K., Copeland, C., Morgan, A., Strong, C., Hamilton, R., Dobson, R., & Walker, S. (2021). Setting Enterprise Water Targets: A Guide for Companies. UN Global Compact CEO Water Mandate. Retrieved from link
- Statista. (2022a). Global share of wastewater safely treated 2022, by region. Statista Water Industry Report. Retrieved from link
- Statista. (2022b). Water industry worldwide: Overview. Statista Water Industry Report. Retrieved from link
- Statista. (2022c). Revenue of selected water and wastewater treatment companies worldwide. Statista Water Industry Dossier. Retrieved from link
- World Economic Forum (WEF). (2024). Investing in Water: A Practical Guide. Retrieved from link