This briefing paper explores how Artificial Intelligence (AI) can significantly improve energy efficiency and demand-side management in South African municipal buildings, offering potential energy savings of 15–30%. It highlights global and local case studies, identifies key implementation barriers such as data gaps and funding, and provides a readiness framework to help municipalities adopt AI through pilots, partnerships, and policy alignment. AI is presented as a strategic tool to reduce costs, enhance grid stability, and support a just energy transition.