Project management is ready for a (r)evolution as advanced technologies that integrate artificial intelligence (AI) are increasingly applied in the field. Understanding the potential of this AI-powered paradigm shift is paramount if financial institutions are to protect and enhance their competitive advantage and to unlock new value. 

It has been estimated that $48 trillion is spent on new projects worldwide each year – but only some 35% of those projects will have a successful outcome. This high failure rate is attributed largely to the inadequacy of applications and technologies currently available and used to manage projects, with spreadheads, slides and other less sophisticated applications continuing to be widely used.

As with many areas of financial services, we see this space as primed for an evolution thanks to advanced AI-enabled technologies. Organizations have an opportunity to reap a range of benefits by preparing the people and the project managers of the future and embedding these modern tools in project management processes. Considering that achieving the smallest of improvements in project success results in considerable realized value and benefit, it is clear AI-driven disruption has a significant potential upside.

To date, the modernization of project management has been notably absent, and smart features are still seriously lacking – even though many core technologies for project management are either already readily available or swiftly becoming so. Yet the challenge remains as to how quickly the technologies that integrate AI can be effectively applied to project management.

What is Artificial Intelligence in Project Management?
In the context of project management, AI can be seen as sophisticated tools capable of organizing, overseeing, and completing project tasks and processes. These technologies are versatile, and can be integrated into most, if not all, project management processes to complement manual activities, enhancing overall project efficiency and effectiveness.

AI in project management is essentially an advanced form of automation used to carry out and complete repetitive, administrative tasks without or with minimal human involvement in a fraction of the time. However, it can also analyze vast project datasets to empower a project’s stakeholders in making significantly better decisions and deliver enhanced project outcomes by leveraging data-driven insights.

Generative AI and its subset of Large Language Models (LLMs) – of which ChatGPT is the most well known – could be utilized in areas such as the creation and analysis of intelligent and organization specific project planning and management documents (high level schedules, charters, etc.) and enabling the use of Virtual Project Assistants (chatbots). 

Areas of Project Management Most Impacted by AI
Advanced AI tools have the potential to play a vital role in enhancing many aspects of project management in the very near future, with many tools already available to practitioners. As noted earlier, the application of AI tools and technologies in project management can alleviate the burden of repetitive and mundane tasks, while simultaneously streamlining processes and fostering better team connectivity and increased collaboration across different geographic locations to achieve maximum productivity.

There are a broad range of areas where AI is expected to impact project management, of which we consider the following to be the most significant:

Virtual Assistants for Projects
Application and use of Virtual Assistants for projects will become a common practice in project management. Via the ability of these Virtual Project Assistants to learn from historical data and to understand the overall context of projects, they will be able to provide valuable project specific responses and information (text/voice).

PMO Support
Optimization and streamlining of the PMO is another area which will benefit because of the AI transformation and the application of more intelligent tools. Improvements will be seen in project progress monitoring, early anticipation of project problems, project reporting, compliance monitoring, and other automations.

Better Project Prioritization and Selection
Project prioritization and selection is another key area which will be greatly enhanced. Through detecting of patterns, and use of available project data, AI and ML can make predictions far more accurately than humans can. As a result, projects which have higher chances of success can be prioritized and executed, and therefore lowering the risk to the business. In essence, ensuring that greater value is realized by removing or minimizing human biases in project selection and prioritization.

Facilitation of better Project Planning and Reporting
With the increased ability to use ML and natural language processing, AI can in the near future be leveraged to achieve improved project planning and scope definition through the automation of the laborious analysis of user stories, and as a result quickly expose any inconsistencies and irregularities. Potential problems can be swiftly addressed and corrected as a result, early in the planning phase. AI can also effectively assist to better facilitate scheduling and to prepare project/resource plans. Finally, automated reporting (project status/slippage, benefits tracking) can be generated with real-time data, to replace presently labour-intensive manual activities that unfortunately produce frequently out of date reports.

Testing of software and systems
One of the most impacted areas which will result in substantial realized benefits once AI tools are applied to project management, will be testing of software and systems. Widely applied automated software and system testing will allow early detection of defects and potentially self-correction solutions, resulting in considerably reduced time-consuming manual testing activities and rework, ultimately resulting in improved continuous value delivery.

Final Thoughts
Accelerating the application and adoption of AI in project management looks set to be a necessity rather than a choice. AI is going to be disruptive to this function, and the way projects are managed will be revolutionized. Far too much benefit remains unrealized due to the low success rate of projects. At the same time, project resources are overwhelmed, and AI has the potential to help lift that burden, making space for fresh creativity.

On the current evidence, advanced AI can play a key role for decision makers and stakeholders in providing actionable insights by analyzing data in real-time. AI can be a boon to navigating the recognized constraints of project management (Cost, Time, Scope, Quality, Benefit and Risk) – through AI-powered automation, real-time insights, cost savings, and risk reduction, higher project success rates can be achieved, and other benefits and increased value unlocked for organizations.

Senior management will need to acknowledge that wider AI adoption will transform the role of project leaders and managers, as the shift to greater automation accelerates. AI’s ability to remove the burden of mundane tasks means project leaders will have enhanced capacity to focus on the organization’s strategic goals and more effectively realize value and benefits in line with those goals.

As AI is increasingly applied and integrated within the project management function, the project leaders and managers of the future will need to display higher levels of strategic thinking and business acumen – and an even stronger understanding of new AI tools and technologies.