Harnessing Digital Technologies for Smarter Water Management in Agriculture 2025

Today, 2.2 billion people lack access to safe drinking water. Up to 700 million people could be forced to relocate due to water shortages by 2030.1 Increasing global temperatures, unpredictable weather patterns and the growing frequency of droughts further strain freshwater resources, disrupting food security and threatening lives and livelihoods. These pressures reflect a deeper systemic challenge: the global hydrological cycle itself being disrupted, amplifying existing vulnerabilities and destabilizing ecosystems. Agriculture accounts for over 70% of global freshwater withdrawals and plays a key role in addressing the global water scarcity challenge.2 However, many agricultural systems still rely on outdated irrigation methods and inefficient water practices, making them more vulnerable to climate-induced disruptions and reduced agricultural productivity. Meeting these challenges calls for a transition from reactive water management to forward-thinking, data-driven approaches to improve resilience and sustainability over the long run. Digital solutions offer a chance to bridge this gap by facilitating real-time monitoring, predictive analytics and precision irrigation methods that enhance water efficiency on a large scale. Without digital transformation, agriculture risks falling behind in addressing climate-induced water shortages. This report, in collaboration with Koç Holding, explores how digital technologies can advance agricultural water management. Through practical use cases and applied strategies, it showcases how artificial intelligence (AI), internet of things (IoT), remote sensing and other advanced technologies can work together to monitor water availability, optimize irrigation and guide crop selection strategies in agriculture. Drawing on the insights of industry leaders, academia and members of the World Economic Forum’s Tech for Climate Adaptation initiative, Water Futures Community and Food Innovation Hubs, the report is designed to help decision-makers navigate the intricacies of water management under climate change pressure. To that end, it presents actionable insights grounded in lived realities rather than theoretical models, as well as tools to advance implementation strategies and guide investment, policy and collaboration initiatives across the agricultural landscape. The integration of cutting-edge digital technologies with a well-defined, strategic, multi-stakeholder framework presents a promising avenue for enhanced efficiency in agricultural water management systems. By advancing robust data infrastructure systems, capacity building and coordinated regulatory initiatives, it is feasible to accomplish a notable decrease in water waste and improved efficiency in agricultural water management. Findings validate the importance of stakeholder engagement through collaboration and shared knowledge to build long-term resilience to future water stresses and shocks. Embracing this holistic approach creates the essential conditions for effective deployment of digital solutions, ensuring that technology, policy and operational expertise are aligned. By the conclusion of this report, policy-makers, business leaders and water management experts will be equipped with actionable recommendations to increase water efficiency, reduce waste and enhance sustainability, driving long-term water security for future generations. Harnessing Digital Technologies for Smarter Water Management in Agriculture June 2025 Foreword Helen Burdett Head, Technology for Earth, World Economic Forum Tania Strauss Head, Food and Water, World Economic Forum Hatice Yıldırım Digital Transformation Program Manager, Koç Holding Harnessing Digital Technologies for Smarter Water Management in Agriculture 3