Strategic use of AI could significantly reduce the financial impact of natural disasters on infrastructure systems, a new report by Deloitte suggests.
According to Deloitte AI for infrastructure resilience reportT, By 2050, natural disasters could be more than twice the annual average recorded over the past 15 years, resulting in losses worth around $640 billion to infrastructure around the world.
When used strategically, AI can prevent around 15% of these expected losses. It costs around $70 billion a year, the report notes.
“Considered and decisive action across stakeholders is critical to helping to build infrastructure systems for the challenges of a changing world,” Deloitte said. “We have a safer, smarter, more resilient future awaits us by fake ecosystems that could potentially go beyond the resilience stage and more recover from disruption with AI.”
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Providing impact
Areas where AI helps deliver impact can improve real-time monitoring and early warning systems so that planning can better identify risks and vulnerabilities and responses.
Recovery is another area where AI can play a key role, helping to accelerate damage assessment after disasters, support faster rebuilding and strengthen future infrastructure systems.
For example, AI applications can generate approximately $30 billion in annual savings related to storm damage and $20 billion in annual savings due to flood damage.
Strategic fantasies
“When deployed strategically, AI can help leaders identify risks faster, optimize resources, prevent costly failures and confusion, and accelerate time for response and recovery during natural disasters,” commented Jennifer Steinman, Deloitte Global Sustain Business Leader.
“Investing in both preventive and reactive AI-powered infrastructure solutions can help protect your economic value and increase your business's resilience.” Learn more here.
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