How AI Will Impact Project and Portfolio Management

The use of Artificial Intelligence (AI) in project management is going to be a game-changer. It’s already starting. It’s a good thing and couldn’t come too soon.

The Standish Group indicates that over 31% of projects will be canceled before they ever get completed. More disheartening is that 53% of projects will cost 189% of their original estimate. Implementing AI in project management can change the game entirely — if applying AI and other technological innovations to project management could improve the success ratio of projects by just 25%, that equates to trillions of dollars of value and benefits to organizations, societies, and individuals.

The game is changing fast. According to Gartner research, by 2030, 80% of project management tasks will be run by AI. It’s not just project management that will benefit either. The entire PMO office will see a revolution. According to a Harvard Business Review article, six critical areas in project management and PMO will be disrupted:

1. Better selection and prioritization: Machine Learning (ML) can detect patterns that can’t be discerned by other means and can vastly exceed human accuracy in making predictions.
2. Support for the project management office: Data analytics and automation startups are now helping organizations streamline and optimize the role of the project management office (PMO).
3. Agile project management: AI algorithms can be applied to detect patterns of success within the Agile methodology, helping managers optimize the methodology in real time.
4. Intelligent resource allocation: AI algorithms can assist project managers in determining the optimal allocation of resources.
5. Predictive risk management: Machine learning algorithms can help project managers identify and mitigate potential risks early on.
6. Enhanced team collaboration and communication: AI can identify team collaboration issues and communication gaps, allowing project managers to address them proactively.

Some may view this as a sign that project management and PMO jobs will be lost, but I choose to view this as an opportunity. By embracing AI in project management, organizations can create better selection and prioritization, enhance the PMO role, improve Agile project management, allocate resources intelligently, improve risk management, and enhance team collaboration and communication.

This will give project managers and PMO directors a chance to focus more on higher-value tasks and everyone wins. Project management has a bright future, and AI is set to revolutionize it.