Deloitte: AI could Slash Natural Disaster Losses by US$110bn
AI could save US$70bn globally in direct costs from natural disasters every year by 2050, according to the Deloitte Center for Sustainable Progress.
Its 2025 AI for Infrastructure Resilience report says that improved AI capabilities could raise this figure to more than US$110bn per year.
“Strategically investing in AI-powered solutions like predictive maintenance and digital twins can help keep the power on and the roads open during natural disasters,” said Jennifer Steinmann, Deloitte Global Sustainability Business Leader, on LinkedIn.
However, the report says there are challenges to the widespread implementation of these technologies.
Why infrastructure resilience matters
The economic value of infrastructure could reach US$390tn by 2050, Deloitte’s research shows.
The report says that annual average losses to infrastructure caused by natural hazards could more than double by 2050, reaching around US$460bn.
Infrastructure is at risk from a wide range of sources including natural disasters, technical failures, cyber threats and social instability.
Floods, earthquakes, hurricanes and other natural disasters can cause sudden and extensive damage.
How AI can support infrastructure
Deloitte’s report says that the implementation of AI solutions for broad planning and timely response through real-time hazard detection and reaction can support conventional approaches to resilience.
This can help to reduce the vulnerability of infrastructure systems and potentially save billions of dollars.
For example, digital twins can be used to design storm-resistant infrastructure which helps to prevent damages.
AI-enhanced flood forecasts can help to reduce damages by supported preparedness and wildfires can be suppressed faster using detection technologies.
Deloitte’s sustainability capabilities
Deloitte offers end-to-end sustainability solutions and services to support the transition to net zero.
For example, GreenSpace Tech by Deloitte is an industry-leading initiative to accelerate sustainability through climate technology ecosystems.
Its GreenLight Solution is described as a true end-to-end system that unlocks a clear, actionable path to net zero emissions to start taking action in just weeks.
“Strategically investing in AI-powered solutions like predictive maintenance and digital twins can help keep the power on and the roads open during natural disasters."
Deloitte’s Sustainability Reporting Catalyst is a tool that enables an accelerated path to complying with the Corporate Sustainability Reporting Directive (CSRD), helping organisations to understand obligations and how much preparation is needed.
The company has experience across industries including life sciences, technology, financial services and energy.
Key sustainability leaders at Deloitte
Jennifer Steinmann, Deloitte Global Sustainability Business Leader, has held various leadership positions across the business for more than 25 years.
Her previous roles include Deloitte US Chief Talent Officer, Deloitte US Deputy CEO and Deloitte US Chief Transformation Officer.
Dilip Krishna is Deloitte’s Global Sustainability Chief Technology Officer with more than 25 years of consulting and industry experience.
He focuses on helping clients effectively apply new and disruptive technology to cause transformative business changes.
Geoff Tuff is Global Sustainability Industry Leader at Deloitte, leading its Sustainability, Climate and Equity work for clients in the energy and industrial sectors.
Geoff has more than 30 years of experience consulting to some of the world’s top companies in growth, innovation and adapting business models to manage change.
Vijay Sharma is the Chief Commercial Officer for the Deloitte Global Sustainability business, responsible for activating the Deloitte network to help build and globalise services and technology to help clients become sustainability leaders.
Previously, Vijay has held roles including Managing Director for Innovation and Global Growth and Investments Leader for Strategic Alliances.
