Adapting to the Era of GenAI: Evolution of Project Management Practices
Project management success depends on effectiveness, efficiency, adaptability, and the ability to foresight and mitigate risks. These principles have not changed in the era of GenAI evolution. The advancements, more than the introduction of GenAI, are impacting project management and Project Management Offices (PMOs) in significant, productive and unexpected ways, promising to redefine their functions and responsibilities across industries.
But what does this entail?
It means that it is now the duty if project managers to understand the technology, its impact, and how it can enhance their role, whilst ensuring ethical and reasonable implementation.
Groundbreaking project management techniques are being introduced and accelerated by GenAI, an important milestone in AI. According to the World Economic Forum, the adoption of AI technologies is expected to soar, with approximately 75% of companies planning to integrate AI by 2027. This growth is further propelled by easily accessible chatbots.
1. Embracing GenAI in Project Management
How can organizations reach unparalleled levels of success? – by combining AI advancements with project management automations. Considering that organizations invest approximately $48 trillion in projects annually, but only 35% of them are considered successful (Forbes, 2023), it becomes evident how GenAI can be the much-needed game changer we have been waiting for.
GenAI mimics human intelligence to generate data, images, text, music, and more. By utilizing algorithms to identify patterns from vast amounts of existing data, it enables the creation of content that reflects the style and structure of the analyzed data. While GenAI- powered chatbots provide support as assistants, it is crucial for project managers to proceed with care to ensure project success.
By leveraging AI-driven insights and automating tasks, project managers can adeptly navigate complexities with agility and foresight. From choosing and prioritizing projects, to streamlining processes and improving decision making, AI enhances all aspects of project management, especially the administrative tasks. Thus, it is safe to say that GenAI is not here to eliminate project management but rather to empower project managers to focus on initiatives that require creativity and a human-approach, such as coaching their teams, managing stakeholder relationships and maybe even improving their leadership skills, as stated by PwC’s recent article (PwC, 2023). The time to invest in soft skills is now.
2. Revolutionizing PMO Operations
If your current PMO has the attribution of preparing reports, gathering project information and consolidating them to present them to senior leadership, then AI will be bringing massive challenges into your organization.
The role of the PMO is undergoing a transformation thanks to AI-powered analytics and automation. The era of project scoping and repetitive reporting is fading away. Why? By 2030, GenAI will be capable of handling 80% of project management tasks, powered by big data, machine learning, and natural language processing, as reported by Gartner.
With AI by their side, PMOs will not only be able to oversee project progress, optimize resource distribution and ensure compliance with regulations, but also empower teams to focus on initiatives that deliver value. By using machine learning and natural language processing, project managers can predict risks, allocate resources efficiently, and provide real-time insights that support informed decision making, fostering a culture of enhancement.
3. Unique Challenges for Project Managers
The adoption of GenAI poses challenges for project managers, including maintaining data quality and usage while addressing security issues and integrating AI into existing processes. Embracing a „human in the loop“ strategy, where human judgment supplements AI decision-making will be crucial in reducing risks and maximizing the potential of AI.
As AI relies on the availability of vast amounts of high-quality data for training and decision-making, project managers may encounter difficulties in obtaining clean and reliable data when integrating AI into their current workflows.
Moreover, AI models do not possess a “true understanding” of the content they create but rather an accumulated knowledge based on the data they were trained on. As a result, they may carry biases ingrained in their human-created training data. Project managers will assume the role of “outcome stewards”, ensuring fairness in AI applications.
4. Redefining the Role of Project Managers
As AI takes on a role in project management operations, the responsibilities of project managers undergo a transformation. In addition to handling duties, project managers now have a crucial role in fostering collaboration between humans and AI, utilizing the strengths of AI to drive innovation and align strategies. By developing skills, leadership qualities, and business knowledge, project managers confidently navigate this evolving landscape with resilience.
5. Empowering Virtual Project Assistants
Welcome to the age of virtual project assistants — AI driven companions that transform project management practices. From organizing tasks to offering progress updates, these digital aids enhance efficiency and facilitate more effective communication channels. By utilizing the capabilities of AI, project managers can assign tasks, freeing up time for higher value tasks that rely on human intelligence. For instance, GenAI may provide an answer on „how to convince resistant stakeholders”, but your soft skills will lead you to communicate in an effective and more empathic manner.
Getting Ready for the Age of GenAI Evolution
As businesses embark on this transformative journey, thorough preparation is essential. Success depends on careful planning and fostering a culture that embraces adaptability, from ensuring data readiness to upskilling the workforce. By embracing AI tools and empowering employees to harness their organizations, they can unlock opportunities for growth and sustainable development.
GenAI provides project managers with resources to enhance their skills, business acumen and work methodologies. Through its functionalities, project managers can improve communication efficiency, gain insights into industry trends, and optimize decision-making processes.
To sum up, the future of project management is closely intertwined with the progress of GenAI. Embracing AI-driven insights enables organizations to navigate challenges, while fostering innovation and achieving success. However, understanding its capabilities, limitations and ethical considerations is crucial for integrating it into project management tasks. By leveraging GenAI under proper supervision, project managers can navigate the complexities of modern project management with confidence and foresight.
GenAI Strategy
In this era of GenAI evolution, it is essential to consider incorporating AI-driven project management into our strategies, but that is only the beginning. Recent discussions about generative AI have shed light on a wide range of issues concerning its implementation. For instance, the CIO of a major healthcare company highlighted concerns about risk protocols, use case development, cybersecurity, ethics and bias, training and development, and many more.
These conversations have underscored the importance of having a clear GenAI strategy. Organizations are realizing that managing the AI risk/reward balance, aligning their GenAI strategy with their digital strategy, experimenting with scaling in mind, developing a productivity plan, putting people at the heart of their GenAI strategy, and working with their ecosystem are essential for success in this rapidly evolving landscape. As GenAI continues to revolutionize project management, it is imperative for organizations to embrace AI-driven insights and technologies, while also prioritizing the well-being and upskilling of their workforce (PwC, 2023b).
Authors:
Nicole Hackl, Senior Manager
Andrea Torres, Senior Associate
Portfolio- & Programme Management (PPM) and Change Management
Sources:
Harvard Business Review, 2023. How AI Will Transform Project Management
Forbes, 2023. AI Will Save, Not Kill, Project Management.
PwC: Strategy + Business, 2023. The art of leading in the AI age.
PwC: Strategy + Business, 2023b. Do you have an “early days” generative AI strategy?
