The water industry is at a pivotal moment. As the demand for sustainable water management grows, utilities must embrace smarter, more efficient ways to engage customers and optimise resources. Enter Agentic AI – a transformative technology that goes beyond traditional automation by proactively making decisions and driving outcomes.
In this blog, we’ll explore what Agentic AI is, how it differs from conventional AI systems, and how, when paired with behavioural science, it can revolutionise customer engagement and operational efficiency in the water sector. From reducing consumption through personalised insights to enhancing decision-making with predictive analytics, this powerful combination offers a new frontier in water management.
What is Agentic AI?
Agentic AI refers to advanced artificial intelligence (AI) systems that are goal-oriented, autonomous and capable of making decisions or taking actions. These systems operate with a degree of agency, meaning they can perceive their environment, make choices and execute tasks with minimal or no human intervention, based on their programming and learned behaviour.
Unlike traditional chat or voice bots, which are largely reactive, Agentic AI is proactive and autonomous. It can take action and achieve goals independently, making it far more capable than conventional conversational systems. While chat or voice bots offer limited proactivity and integration, Agentic AI is a true problem-solver, seamlessly integrating into complex workflows.
Examples of agentic AI:
- Autonomous vehicles: Self-driving cars use sensors, data, and algorithms to navigate, avoid obstacles and optimise routes in real time.
- AI assistants: Advanced virtual assistants can handle complex tasks such as scheduling meetings, making purchases, or conducting conversations without constant human prompts.
At Advizzo, we’re excited about the potential of combining Agentic AI with behavioural science to revolutionise customer engagement and business outcomes in the utilities industry. This powerful combination will align technology with human behaviour to drive water conservation, improve decision-making and enhance customer experiences.
How Agentic AI and Behavioural Science can transform the water industry
1. Customer engagement and behaviour modification
Agentic AI systems can analyse vast amounts of data on a customer’s water usage patterns and deliver personalised recommendations to encourage water conservation. Coupled with behavioural insights, such as social norms-based feedback and gamification, AI can make water-saving actions more appealing to customers.
2. Enhanced decision-making
Machine learning-equipped AI can predict areas of high water wastage and provide customers with precise actions to reduce consumption. Combine it with behavioural science models like the SHIFT framework (Social influence, Habit formation, Individual self, Feelings and cognition, and Tangibility) and you can ensure messaging resonates with customers, fostering sustained behaviour change.
3. Dynamic pricing and incentives
By combining AI with behavioural nudges, water utilities can implement dynamic pricing models that incentivise off-peak water use to reduce strain on natural resources. AI can also automate the delivery of incentives, such as rebates for reduced usage, using behavioural science principles to maximise engagement and acceptance.
4. Feedback and visualisation
Research shows that making water consumption visible encourages conservation. AI can provide real-time dashboards comparing a customer’s usage to similar households. Social benchmarking and visual prompts (e.g., smiley faces or progress graphs) can further encourage efficiency.
5. Sustainability and habit formation
AI-driven interventions can promote long-term sustainable behaviours through habit-forming strategies such as reminders, default options, and ease-of-use enhancements. For instance, automated scheduling for irrigation systems based on weather forecasts can help conserve water while aligning with customer preferences.
6. Scalability and cost-effectiveness
AI systems are scalable, allowing water companies to deliver tailored interventions to a broad audience. By integrating behavioural insights, these interventions become more cost-effective, avoiding backlash from punitive measures like fines.
7. Long-term impact and business outcomes
A combination of AI and behavioural sciences can help to foster customer trust and satisfaction. As customers achieve water savings, utilities can highlight these successes to further build goodwill. What’s more, reduced operational costs due to lower water demand will have a positive impact on financial performance.
Next steps – Laying the foundations.
To fully leverage the potential of Agentic AI in the water industry, water companies must establish some key foundations. These steps will ensure readiness to adopt and maximise the benefits of this truly transformative technology:
Step 1 – Data infrastructure:
Water companies need to collect and securely store the right data. This includes:
- Comprehensive customer data, such as water consumption patterns and demographic insights.
- Contextual information, such as household characteristics, environmental factors and behaviours.
Establishing robust data collection methods and a centralised, accessible system today will enable AI-driven insights.
Step 2 – Customer engagement strategy:
Engaging customers is essential for the successful adoption of AI-driven interventions. Water companies need to:
- Identify the channels and formats their customers prefer for communication (e.g., emails, mobile apps, or dashboards).
- Foster trust by being transparent about how data is collected and used, highlighting the customer benefits (e.g., cost savings, environmental impact).
- Launch educational initiatives to familiarise customers with AI-powered tools and behavioural interventions.
Are you ready for the future?
Water companies already working with Advizzo on behavioural science-based customer engagement programmes will be ideally positioned to adopt Agentic AI solutions. This will drive sustainable practices, delivering environmental benefits alongside enhanced customer value and profitability.
Are you ready to embrace the future of water management? Talk to us today!
Suggested further reading
Blog – Preparing for the Gen AI Era: Why Data Quality and Personalisation Are Key
Blog – Navigating Ofwat’s PR24: How Advizzo Empowers Water Companies to Succeed
Blog – Tackling Rising Water Costs: Customer Engagement and Consumption Reduction