Effective project management is the recipe for a successful business. Organizations that undervalue project management see 70% of their projects fail. Conversely, when better management processes are implemented, the project failure ratio comes down to 20%.
However, many projects still face challenges such as delays, cost overruns, and decreased productivity. According to a Project Management Institute (PMI) report, 30% of projects are completed without meeting their objectives, and 20% fail to deliver expected benefits.
One way to overcome these challenges is to utilize AI in project management tools—many organizations are doing just that to enhance project management processes, as can be seen in the image below. AI can automate routine tasks, provide real-time insights, and predict potential project risks.
In this article, we’ll explore how AI tools are transforming project management—and how they can help your organization be more efficient and cost-effective.
Understanding AI in Project Management
Artificial Intelligence (AI) in project management refers to the application of intelligent machines and algorithms to automate, optimize, and improve project planning, execution, and monitoring. AI technology is capable of analyzing data, learning from patterns, and making predictions or decisions to support project success. After the AI revolution, most project management tools have incorporated AI in their tools, with varying focus on different areas.
Below are listed some key AI concepts in project management.
Key AI Concepts in Project Management
Machine Learning (ML)
AI algorithms learn from historical data, project trends, and real-time information to improve predictions and decision-making. For instance, a project manager uses ML to analyze historical data on project timelines, identifying a pattern of delays caused by different conditions. The AI tools—which are usually integrated into the project management tool these days—suggest adjusting the project schedule to account for potential delays. Tools like Asana, Jira, and Forecast use ML to suggest tasks, predict project timelines, and improve team communication.
Natural Language Processing (NLP)
AI-powered chatbots and virtual assistants understand and generate human-like language, facilitating communication and task automation. NLP enables project teams to interact with AI tools using natural language, making it easier to assign tasks, track progress, and provide updates.
“For project-based task automation, such as organizing standup meetings during agile project delivery, Geekbot and Standuply are some examples of AI-driven solutions,” recommends IPMA. But other tools, depending on the functionality you need, have equally made use of the NL.
Predictive Analytics
Another—and still evolving—concept is predictive analytics in project management. AI algorithms analyze data to forecast project outcomes, identify potential risks, and optimize resource allocation. Thanks to the datasets of previous projects, predictive analytics help project managers anticipate and prepare for potential issues, ensuring proactive decision-making. For example, a software development project manager uses predictive analytics to forecast project timelines and resource requirements. AI identifies a high likelihood of delay due to insufficient resources, ultimately prompting the manager to allocate additional team members.
AI in Project Management: Capabilities and Benefits
Artificial Intelligence (AI) technology enhances project management by analyzing data, learning from patterns, and making predictions or decisions to support project success. Per a survey, automating tasks is the top benefit of using AI tools (cited by 33% of project professionals), followed by effective resource allocations (32%) and getting more accurate metrics (27%).
Some key AI capabilities in project management include (but are surely not limited to):
Automation and Optimization
This has honestly made life easier for project managers—and other team members. AI-powered tools automate routine and repetitive tasks, optimize resource allocation, and streamline project workflows. Automation frees up resources by taking their attention away from monotonous, repetitive tasks so they could focus on strategic and high-value activities. Per Smartsheet, automation can increase productivity in project management tasks by up to 70%.
Data Analysis and Insights
AI algorithms process and analyze large datasets, identifying patterns, trends, and insights that inform project decisions. For instance, AI can analyze project timelines, resource utilization, and budget data to identify areas for improvement, as can be seen in the image below. It is no wonder that those organizations that use data analytics in project management reports have witnessed improved project outcomes.
Predictive Analytics
AI predicts project outcomes, identifies potential risks, and optimizes resource allocation. Predictive analytics enable project managers to anticipate and respond to project changes, reducing the risk of project failure. A study by McKinsey found that predictive analytics can improve project delivery times by up to 30%.
Risk Management
Coupled with predictive analytics is risk management—AI identifies potential risks and recommends mitigation strategies. AI-powered tools analyze project data, identifying patterns and trends that indicate potential risks. For instance, in the image above, to reduce the risk, it is recommended that Task B should be assigned to Resource Y to avoid any potential delay. At the same time, it warns that if you go with the existing plan, you may experience a delay of 4 days. You get the picture that how it can enalble project managers to manage risks and minimize project failures.
Team Collaboration
Per Walden University, poor communication is attributed to failures in 19% of projects. To roll out an efficient strategy, all players must be communicating effectively so that different elements don’t end up working at cross-purposes. AI-powered chatbots, co-pilots, and virtual assistants facilitate communication (for instance, analyzing the context and suggesting the next action) and task management. According to a report by Slack, real-time collaboration tools can increase team productivity by up to 30%.
With all of the capabilities mentioned above, if implemented the right way, organizations can achieve significant results, such as increased productivity, improved efficiency, better teamwork, and so on.
How Can DevEngine Help with AI Tools in Project Management?
We are a nearshore staff augmentation agency with a sole focus on the tech sector—software development, project management, data engineering, etc. Thanks to our presence and extensive talent pool in Latin America, we connect North American businesses with experienced nearshore project managers who possess the expertise to drive AI-driven projects forward. According to a 2024 Project Management Institute report, Artificial Intelligence and Project Management, Latin America has the highest AI maturity levels in the world and also spends the most effort on making sure employees are ready to use AI tools.
With hiring nearshore project managers, businesses not only get PMs who are proficient in project management but also well-versed in AI applications, especially when it comes to AI tools in project management. Our nearshore project managers bring a deep understanding of AI-driven project management, including AI analytics, predictive modeling, and automation. Additionally, hiring nearshore project managers can bring in specialized expertise, reduce costs, and bring new perspectives to the table.
At DevEngine, we have helped many businesses like yours get the best project managers from LatAm. If you want a project manager who can understand your vision, whether full-time or on a fractional basis, we can help you find the best talent.