AI AND THE ELECTRICAL CONTRACTING SECTOR: OPPORTUNITIES, RISKS AND THE ROAD AHEAD

Artificial Intelligence (AI) has quickly moved from being a topic of speculation to becoming a practical business tool. Across the globe, companies are using AI to improve efficiency, automate repetitive tasks and support decision-making. While South Africa may still be finding its footing in some areas of digital transformation, the technology is beginning to gain momentum across industries, including engineering, construction and infrastructure development.

To better understand how AI is being adopted locally and what it could mean for the electrical contracting sector, Wired spoke to Adrian Coetzee, Chief Technology Officer at iX engineers. Mr. Coetzee’s role centres on technology transformation and ensuring that the business remains at the forefront of digital innovation.

Embracing the Technology Shift

Mr. Coetzee’s move into a technology-focused leadership role was driven by a simple realisation: the future of business will be shaped by technology.

“The business realised that technology is going to lead the way of things,” he says. “We know that in business there are instances where there is repetition, doing the same thing over and over again. There is a game changer somewhere and we’re always on the lookout for it. AI has become a big player in many sectors of the world. We saw that maybe that was the game changer.”

When iX engineers established its technology department, Mr. Coetzee set himself a challenge.

“I gave myself six months and said to myself that if I do not see AI implemented in the company in those six months, then I’m not the right guy for the job.”

Six months later, the company had developed its first AI solution and was already seeing results. What started as an experiment has since evolved into a broader technology transformation journey.

South Africa’s Digital Transformation Journey

Although AI has become a familiar term in boardrooms and workplaces, Mr. Coetzee believes South African industries still have significant room for growth when it comes to digital transformation.

“I believe everyone is aware of AI and what it can do for us,” he says. “I do believe certain industries are a little bit behind because of resistance to change.”

He believes the engineering and construction sectors face a unique challenge. These industries have been built on proven methodologies, tested formulas and calculated decision-making.

“Engineers and construction contractors go back many years. They work on proven technologies, formulas and results. The resistance is therefore not anything else but rather wanting to make calculated decisions.” While he acknowledges the cautious approach, he believes the pace of adoption will continue to increase as organisations begin experiencing tangible benefits.

Learning from Global Trends

Globally, AI adoption within construction continues to accelerate, particularly in regions investing heavily in large-scale infrastructure development. Mr. Coetzee points to Saudi Arabia as an example. “If I compare what we do in South Africa versus Saudi Arabia, if you tender in Saudi Arabia, they will ask you how many autonomous construction vehicles you have.”

By contrast, South Africa’s construction environment is often shaped by broader social and economic realities. “South Africa focuses more on job creation and getting a driver behind a steering wheel to create a job. So, the focus in South Africa is a little different and that’s why it can be said we are a little behind.”

For electrical contractors operating in a competitive environment, these global trends provide an indication of where the industry may be heading in the coming years.

What AI Means for Electrical Contractors

For contractors, one of the most significant advantages of AI is its ability to process large amounts of information and identify patterns that may otherwise go unnoticed. Mr. Coetzee describes AI as an “enabling technology” rather than a replacement for professional expertise.

“It does not replace a registered engineer or contractor,” he says. “It is a tool that allows us to see things that we would not normally see.” He believes the technology will be particularly valuable in the energy sector, where data-driven insights can improve planning, monitoring and operational efficiency.

The opportunity for South Africa is not simply to automate existing tasks. It is to use AI to deliver infrastructure more intelligently: reducing water losses, improving road maintenance, strengthening project controls, supporting grid expansion and helping professionals make better decisions with limited resources. The road ahead is therefore not a choice between innovation and control. We need both.”

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Will AI Replace Jobs?

Few discussions around AI take place without concerns about employment. Mr. Coetzee approaches the issue candidly. “The short answer is yes, AI will replace a lot of jobs, but it will also create a lot of new jobs.” He believes the greatest impact will be felt in repetitive and administrative functions. “All the repetitive tasks that we do, those are the things that will be done by AI. Things we do daily that keep us from being productive will be replaced by an AI.” However, he does not see this as a threat to skilled professionals.

“It will allow a contractor to do what a contractor is supposed to do, more efficiently.” Rather than replacing expertise, AI is expected to free professionals from routine tasks, allowing them to focus on activities that create value, strengthen client relationships and grow their businesses.

“AI will strengthen professional judgement, not replace it”

Managing the Risks

While the benefits of AI are substantial, Mr. Coetzee believes organisations must approach the technology responsibly. “I’ve always said to people in our company, if you cannot verify something, then you cannot own it.” He warns against blindly accepting AI-generated outputs and stresses the importance of governance, accountability and proper data management.

“If you don’t have your guardrails and corporate governance in place, then anything you have is not controlled.” Data protection, intellectual property and verification processes will become increasingly important as AI becomes more deeply embedded within business operations.

Mr. Coetzee states, “AI’s real value begins when it starts identifying risks before people notice them.”

The Construction Site of the Future

Looking ten years ahead, Mr. Coetzee expects construction sites to look very different from those we see today. He foresees the following:

• fewer personnel on construction sites;

• increased use of autonomous equipment; and

• the possibility of construction activities being managed remotely.

He also predicts that design processes will become increasingly modular and AI-assisted, enabling projects to be delivered more efficiently.

For electrical contractors, this could mean:

• adapting to new technologies;

• embracing new workflows; and

• developing new skills to remain competitive in a rapidly evolving industry.

Those who embrace change early are likely to be best positioned to take advantage of the opportunities that emerge.  

“The real AI challenge in construction is not artificial intelligence. It is organisational intelligence.”

A Partnership Between Humans and AI

Despite his enthusiasm for the technology, Mr. Coetzee does not believe the future belongs to AI alone. “There’s a nice phrase I heard where people say there must be a harmonic dance between humans and AI,” he says.

“AI should not be without a human and we’re going to a point where humans should not be without an AI. We should stay together.” For Mr. Coetzee, the most successful future will not be one in which technology replaces people, but one in which people and technology complement one another. His final warning is perhaps the most powerful.

“If we allow singularity to happen, which is a point in the future where the AI overtakes the human, then we’re headed for trouble. So, AI and humans should work together.”

For South Africa’s electrical contracting sector, that may be the key takeaway. AI is not simply another software tool arriving on the market. It represents a fundamental shift in how businesses operate, how projects are delivered and how decisions are made. The challenge now is ensuring that the industry adopts the technology thoughtfully, responsibly and with people firmly at the centre of the process.

Written by: Florence Mabena

ECA(SA) Publications Manager

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