exci’s AI Detection: Reducing the Economic Burden of Bushfires

Bushfires pose a growing threat to Australia’s economy and environment. Their frequency and intensity have escalated from the devastating Black Saturday fires in 2009 to the catastrophic Black Summer of 2019 –2020, resulting in soaring economic losses. Although experts predicted rising costs under climate change scenarios, recent fires have already outstripped even the most cautious estimates.

The 2014 Productivity Commission report underscores a fundamental challenge: governments tend to focus too heavily on post-disaster recovery while underfunding mitigation efforts that could reduce bushfire risks. As a result, financial liabilities are rising. When suppression teams arrive, the size of a fire determines how well it can be controlled. Consequently, faster detection and response can prevent small fires from becoming uncontrollable, saving lives and money.

This post examines why Australia’s economic burden from bushfires will likely exceed earlier projections. In addition, we introduce exci’s cutting-edge AI-powered wildfire detection system, which identifies fires in their earliest stages. By enabling faster intervention, our solution prevents small fires from becoming devastating disasters, reducing environmental damage and economic costs.

The Black Summer Fires: A$100 Billion Wake-Up Call

During the 2019–2020 Black Summer fires, approximately 12 million hectares burned, over 3,000 homes were destroyed, and at least 33 lives were lost. In response, the Australian government pledged A$2 billion in emergency aid. However, experts like Professor John Quiggin from the University of Queensland argued in 2020 that the actual cost far exceeds these official figures.

The Treasury estimated that the fires reduced GDP by $4.6 billion, but economist Janine Dixon cautioned that “GDP does not tell the full story.” Indeed, conventional metrics like GDP can be misleading, as they treat recovery efforts—such as rebuilding and healthcare demand—as economic positives while ignoring the destruction and human suffering that necessitated them.

More comprehensive economic models reveal the full impact of disasters. These models account for firefighting costs, health impacts, displacement, asset losses, and long-term environmental damage. Additionally, they highlight secondary consequences, such as reduced tourism, weakened consumer confidence, and rising insurance premiums. Quiggin aptly summarised the challenge, calling the government’s A$2 billion aid package “a drop in the bucket” compared to the vast economic fallout.

Research from the University of Queensland, published in Environmental Research Letters in 2022, estimated the costs of restoring the fire-impacted native environment. Specifically, the researchers determined that restoring the environmental damage from the Black Summer bushfires will require $16 billion annually. While this investment could restore 65% of affected species’ habitats, fully restoring 95% would cost a staggering $73 billion annually. This research indicates that even Professor Quiggin’s estimate of $100 billion falls short.

Fire alarm by Nothing Ahead via pexels