Executive summary Digital technologies offer a pathway to enhance agricultural water efficiency, unlock water resilience and support long-term climate adaptation goals. The disruption of hydrological cycles as a result of climate change contributes to more severe and frequent droughts in certain geographies.3 Inefficient water strategies further drain natural water resources and undermine food security, putting immense pressure on major freshwater consumers. Agriculture sits at the heart of the crisis. Although the sector accounts for the majority of global freshwater withdrawals, inefficient irrigation, outdated infrastructure and poor visibility into water availability have historically resulted in significant waste and reduced resilience. Digital technologies pave the way for a transformative approach to optimize water use, minimize waste and build resilience against water scarcity across agricultural systems. By integrating digital tools and data analytics into agricultural practices, farmers can make better-informed decisions in real time, addressing critical inefficiencies in agricultural operations, for example through: –Monitoring and assessing water availability: Satellite imagery, IoT sensors and AI-driven analytics can help monitor soil moisture, groundwater levels and drought risks in real time. These technologies improve the visibility of water resources, enabling farmers to make data-driven decisions regarding irrigation and drought preparedness. –Optimizing irrigation: IoT-enabled precision agriculture, powered by AI-driven irrigation scheduling and remote sensing technologies, can minimize water waste through optimized irrigation practices while boosting crop yields. –Strategic crop planning: AI-powered satellite imaging can analyse climate, soil and hydrological data to match the right crops to water availability. Farmers can select their crops strategically by aligning crop types with water supply levels. –Rainwater harvesting optimization: With geographic information systems (GIS)-driven site selection, smart allocation decisions and predictive analytics, rainwater collection can be optimized through efficient capture, storage and distribution. Harvested rainwater can then be used more effectively by implementing advanced geospatial analysis, AI-driven monitoring and drones. Key building blocks accelerate the implementation of digital solutions for long-term resilience: –Data infrastructure: Building systems that achieve seamless data exchange among platforms, tools and stakeholders. –Broadband coverage: Guaranteeing continuous data access in remote locations through robust digital infrastructure. –Digital upskilling: Equipping farmers with the digital training and tools to comprehend and act on digital insights. –Affordable access: Overcoming financial barriers with public-private partnerships, financial incentives and shared infrastructure models. Water scarcity calls for urgent action at all levels. By implementing digital water solutions together, governments, agribusiness and technology providers can improve water efficiency, drive sustainable growth and secure long-term food production. Governments can foster enabling conditions through open-data regulations and infrastructure investment, while agribusiness and technology providers offer the tools, field knowledge and innovation required to scale-up the impact. Such public-private partnerships can accelerate access to advanced irrigation technology, increase digital literacy and lower technology expenditures for farmers. Continued collaboration at this level will unleash shared value, increase adoption and enhance water resilience in agriculture, ensuring that water and food ecosystems are sustainable and adaptable to climate change. Harnessing Digital Technologies for Smarter Water Management in Agriculture 4

Harnessing Digital Technologies for Smarter Water Management in Agriculture 2025