Deloitte: AI May Save the World $110 Billion in Disaster Damages

A new report from the Deloitte Center for Sustainable Progress reveals that artificial intelligence could become a powerful tool in reducing the cost of natural disasters worldwide. According to the study, AI has the potential to save as much as $ 70 billion annually by 2050 in direct costs associated with disasters. If AI capabilities continue to improve, the savings could climb even higher, exceeding 110 billion dollars every year. Despite the enormous opportunity, the report emphasises that there are still significant challenges in implementing these technologies at scale.

“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. 

Jennifer Steinmann, Global Sustainability Business Leader at Deloitte

By 2050, the global economic value of infrastructure is expected to soar to nearly 390 trillion US dollars. Alongside this growth comes risk. Deloitte’s analysis suggests that annual losses from natural hazards could more than double by mid-century, rising to around $ 460 billion.

Image Credit: Deloitte Center for Sustainable Progress/Deloitte Global analysis

The threats to infrastructure are varied. Beyond the obvious risks posed by earthquakes, floods, hurricanes, and other natural disasters, there are also dangers stemming from cyberattacks, technical failures, and even social instability. When a disaster strikes, the damage can be swift, widespread, and incredibly costly.

The report argues that AI can enhance conventional approaches to resilience by supporting broad planning and enabling rapid responses. Real-time hazard detection, combined with predictive technologies, can play a crucial role in reducing vulnerabilities across infrastructure systems.

For instance, digital twin technology enables the modelling and design of infrastructure that can withstand extreme weather events. AI-powered flood forecasting improves preparedness and limits damage. Wildfire detection systems, enhanced by AI, allow authorities to respond more quickly and suppress fires before they spread out of control. Together, these solutions demonstrate how technology can save both money and lives.

Deloitte continues to position itself as a leader in sustainability and climate-related innovation. Its GreenSpace Tech initiative helps accelerate the adoption of climate technology ecosystems. Another offering, the GreenLight Solution, provides organisations with a comprehensive pathway to net zero, guiding them from planning to execution in a matter of weeks.

The firm also developed the Sustainability Reporting Catalyst, a tool designed to help companies meet the requirements of the Corporate Sustainability Reporting Directive. This tool makes it easier for organisations to assess their obligations and prepare accordingly. Deloitte’s sustainability work spans industries including technology, life sciences, financial services, and energy.

Dilip Krishna, Global Sustainability Chief Technology Officer at Deloitte

Several experienced leaders spearhead the company’s sustainability efforts. Jennifer Steinmann, Deloitte Global Sustainability Business Leader, has been with the firm for over 25 years, previously holding senior roles, including Deputy CEO and Chief Talent Officer in the United States.

Dilip Krishna, Deloitte’s Global Chief Technology Officer for Sustainability, brings over two decades of experience in both consulting and industry, focusing on helping clients apply new technologies to drive transformative business change.

Geoff Tuff, Global Sustainability Industry Leader at Deloitte

Geoff Tuff serves as Global Sustainability Industry Leader, guiding Deloitte’s work in climate, sustainability, and equity for energy and industrial clients. He has spent over three decades advising major global companies on growth, innovatio,n and adapting to disruptive change.

Vijay Sharma, Chief Commercial Officer for the Deloitte Global Sustainability business

Vijay Sharma, Chief Commercial Officer for Deloitte Global Sustainability, leads the firm’s efforts to expand its services and technologies on a global scale. His previous leadership roles include Managing Director for Innovation and Global Growth, as well as Investments Leader for Strategic Alliances.