The strategic use of AI could significantly reduce the financial impact of natural disasters on infrastructure systems, a new report by Deloitte has suggested.
According to Deloitte’s AI for infrastructure resilience report, by 2050, natural disasters could lead to approximately $640 billion worth of annual losses to infrastructure worldwide, more than double the annual average recorded over the past 15 years.
If used strategically, AI could prevent around 15% of these projected losses – around $70 billion annually, the report notes.
‘Coordinated and decisive action across stakeholders is important to help build infrastructure systems, that are prepared for the challenges of a changing world,’ Deloitte noted. ‘By forging an ecosystem that can be more resilient to disruption and reinforced with AI across the phases of resilience, a safer, smarter and more resilient future awaits.’
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Delivering impact
Areas in which AI can help deliver impact include planning, with AI able to better identify risks and vulnerabilities, and response, with the technology improving real-time monitoring and early warning systems.
Recovery is another area in which AI can play an important role, helping to accelerate post-disaster damage assessments to support faster rebuilding, as well as strengthening infrastructure systems for the future.
For example, AI applications could generate savings of around $30 billion annually in relation to damage caused by storms and $20 billion annually for flood damage.
Strategic delployment
“If deployed strategically, AI can help leaders identify risks sooner, optimise resources, prevent costly failures and disruption, and accelerate response and recovery times during natural disasters,” commented Jennifer Steinmann, Deloitte Global Sustainability Business leader.
“Investing in both preventative and reactive AI-powered infrastructure solutions can help safeguard economic value and increase business resilience.” Read more here.
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