As artificial intelligence anxiety spreads across professional services, Montreal-based engineering giant WSP Global is drawing a sharp distinction between hype and reality.
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During the firm’s fourth-quarter and full-year earnings call Thursday, CEO Alexandre L’Heureux reassured investors that WSP’s business model is not at risk of disruption as the industry shifts from “AI euphoria to AI hysteria.”
The comments came amid broader market concerns that advanced AI systems could displace traditional consulting, engineering and design firms.
“In recent months, many actors have painted all professional services firms with the same AI brush, worrying that we are entering an era where advanced AI will replace firms like WSP,” L’Heureux told investors. “WSP’s recent share price performance was not immune to that sentiment.”
WSP shares recently touched a 52-week low before rebounding modestly following the earnings release.
L’Heureux emphasized that WSP’s value proposition lies in its physical-world expertise — not solely digital outputs. The firm employs roughly 83,000 professionals working across infrastructure, transportation, water, energy and environmental sectors.
“It represents service work that blends advanced domain expertise, inherent know-how, technical analysis, field execution and professional judgment, along with massive amounts of proprietary data, knowledge and experience that is not publicly available,” L’Heureux said. “In contrast, other industries to which WSP may be compared to, largely operate in the virtual sphere.”
In other words, while AI can assist with modeling, analysis and efficiency, it cannot independently assume responsibility for designing bridges, overseeing remediation projects or certifying public safety infrastructure.
The company reinforced that stance earlier this month by updating its internal AI policy, outlining governance principles and reaffirming human oversight as central to its operations.
Central to WSP’s approach is what leadership calls a “machine-in-the-middle” framework — using AI to augment, not replace, engineers and consultants.
“AI-generated outputs are always subject to rigorous human oversights, thorough quality control and professional accountability,” L’Heureux said. “Our clients require us to stand behind our advice and design with substantial professional liability insurance and the financial strength of a strong balance sheet.”
The emphasis on liability is key. Unlike purely digital firms, WSP signs off on complex, high-risk infrastructure projects that demand licensed expertise and insurance-backed accountability.
Chief Technology Officer Chadi Habib told analysts that WSP is selective about AI partnerships. While some competitors have opted for sweeping alliances — such as Turner Construction’s “wall-to-wall” AI collaboration with OpenAI — WSP balances external collaboration with in-house development.
“We’ll work with the ones that are willing to work with us on protecting our domain expertise while driving value to our clients,” Habib said. “In other cases, we’re building internally our own proprietary models that will remain within our parameters, so we can retain that IP and the value we bring to our clients.”
Habib added that startups frequently approach WSP seeking access to its domain expertise, underscoring the firm’s position as both an AI adopter and industry gatekeeper.
The firm’s financial results bolstered management’s argument that its diversified model remains resilient.
For the fourth quarter ended Dec. 31, 2025, WSP reported revenue of 4.85 billion Canadian dollars (approximately $3.54 billion), up about 4% year over year from CA$4.66 billion. Quarterly profit reached CA$256 million, a 54% increase from CA$167 million the previous year.
For full-year 2025, revenue climbed 13% to CA$18.3 billion, compared with CA$16.2 billion in 2024. Annual profit rose 42% to CA$964 million, up from CA$681 million.
Backlog hit a record CA$17.1 billion — a 10% year-over-year increase — providing visibility into future revenue streams.
“We entered the year from a position of strength. We run a resilient and diversified platform, we have a healthy backlog and pipeline of opportunities, and we remain focused on quality growth, operational efficiency, and disciplined capital allocation,” L’Heureux said.
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WSP’s comments reflect a growing divide in construction and engineering over AI’s role. Some firms are racing to automate workflows and embed generative AI into design processes, while others are emphasizing augmentation rather than replacement.
For engineering consultancies, the debate often centers on liability, intellectual property and client trust. Infrastructure owners typically require stamped drawings, regulatory compliance and long-term accountability — responsibilities that remain squarely human.
By positioning itself as a disciplined adopter rather than a disruptable target, WSP is signaling to investors that AI may reshape workflows — but not erase the need for licensed expertise, field execution and institutional knowledge.
As AI adoption accelerates, the firm’s “machine in the middle” approach suggests a hybrid future: technology at the core of operations, but humans firmly in control.
Originally reported by Matthew Thibault, Reporter in Construction Dive.
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