Upskilling in an AI-driven world: A chance for the water sector to boost productivity and improve customer satisfaction

Dilani Pararajasingam has recently been appointed Head of Data at Pennon, having previously led data engineering at SES Water, one of Pennon’s subsidiaries. She is now leading Pennon Group’s Data, Analytics, and AI Strategy and Open Data initiatives, driving data exploitation across South West Water, Bristol Water, Bournemouth Water and SES Water.

Dilani Parajasingam
Dilani Parajasingam

Every day, the UK loses around 3 billion litres of treated water to leaks. Within a context of climate change, ageing infrastructure, and rising demand, water security is under pressure.

AI is often presented as a solution, offering the ability to detect leaks faster, predict equipment failures, and optimise resource management. However, technology alone is not enough. The real challenge is ensuring the workforce has the skills to apply AI effectively.

The water industry generates vast amounts of data daily, covering everything from treatment processes to network performance. AI has the potential to turn this data into real-time insights that improve response times and efficiency. Yet AI systems can only be as effective as the people using them. Without the right expertise, the full potential of AI will not be realised.

Recognising AI’s role in driving productivity, the UK government has launched the AI Opportunities Action Plan, which highlights the urgent need to develop AI capabilities across industries. However, the UK lags behind its global peers in technical skills, ranking 45th out of 109 countries in the Global Skills Report 2024. Without investment in workforce training, industries like water risk falling behind in AI adoption.

For the water sector, the challenge is clear. While AI can analyse patterns, detect anomalies, and automate routine processes, it still requires human oversight. Engineers, analysts, and frontline teams need training to interpret AI outputs, apply insights to real-world challenges, and ensure that decision-making remains accountable and transparent. AI should be seen as a tool that enhances human expertise rather than replacing it.

At Pennon, training is central to our AI strategy. At one of our subsidiaries, SES Water, we have already upskilled over 75% of employees and plan to upskill 90% more across the Pennon Group in the next five years.  This has included developing expertise in data analysis, automation, and predictive maintenance, enabling teams to work alongside AI rather than being displaced by it. The results are already visible, from faster responses to network issues to improved forecasting of water demand based on weather patterns and population changes.

AI adoption is not just about introducing new technology. It requires a shift in how industries think about skills development. The most valuable workforce skills in an AI-driven world are those that machines cannot replicate, such as critical thinking, problem-solving, and adaptability. Training programmes that integrate these skills with AI knowledge will be essential for the water sector to make the most of new technology.

As AI continues to shape industries, the water sector has an opportunity to lead the way in responsible adoption. By prioritising training and upskilling, the industry can ensure AI is used effectively to improve efficiency, enhance customer satisfaction, and strengthen long-term resilience. Unlocking AI’s potential depends not just on the technology itself, but on the people who use it.

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