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Artificial intelligence and project management: Improving success rates
Posted by Grace Townsley
March 17, 2023
Projects are an integral part of every business in every industry — from large-scale government initiatives to small business operations. Despite the prevalence of projects across industries, the success rates for projects of every size and breadth remain abysmally low.
How low? According to the Standish Group’s annual CHAOS Report, only 35% of projects are considered successful. And with over $48 trillion invested in projects each year (and growing by the year), that’s a staggering amount of resources being wasted on systems, ideas and plans that just don’t pan out.
Outdated technology is partially to blame
One significant contributor to the poor success rate of everyday projects is outdated technology. Spreadsheets, slides, and project management software have changed little over the past few years — even as every other aspect of business has shifted.
A decade ago, traditional tools and methods may have been adequate for measuring project success. But today, they fall short when it comes to adapting to changing business landscapes. Hybrid work, global teams, expanding supply chains, and constantly shifting market conditions all put a strain on the tools project managers used to find success with.
As a result, organizations of every size have been unable to improve their project management processes and unlock the full potential of their investments.
Artificial intelligence (AI) offers a forward-thinking solution
AI-based project management systems can help organizations boost their success rates and streamline projects in a number of ways. By applying AI algorithms to traditional project management methods, organizations can increase efficiency, decrease costs, and improve performance with greater real-time accuracy than ever before.
According to Gartner researchers, 80% of the work today’s project managers complete will be handled by AI by the year 2030. Daily tasks like data reporting, tracking, analysis, and communications can easily be handled by an intuitive AI tool, allowing project professionals to focus on soft-skill tasks, like relationship-building between stakeholders, coaching team members, training departments, and presenting new ideas.
Startups and researchers are already developing advanced algorithms that harness the power of AI and machine learning to streamline simple projects. And considering how these tools can improve project success rates by 25% or more, it’s an exciting and profitable experiment.
AI adoption — sooner rather than later — offers businesses a host of streamlining benefits
The emergence of artificial intelligence (AI) is already revolutionizing how projects are managed. AI enables project managers to work faster and smarter, empowering them to optimize their efforts and deliver better results.
One of the most exciting benefits of integrated AI project management software is improved automations for real-time corrections. AI-driven systems can comb through large amounts of data quickly and accurately, giving project managers invaluable insights into the performance of their team and the progress of the project.
Thousands of data points, from due dates and participant morale to budgets and supply chain logistics can be closely monitored 24/7 — offering a continuously updated view into the real state of every aspect of the project. By automating tedious and time-consuming tracking tasks, AI frees up valuable time and resources that can be used on more productive activities such as research, planning, and strategizing.
In addition to automation, AI also brings enhanced accuracy to project management. Machine learning algorithms, which are AI-based systems that recognize patterns in data that humans tend to overlook, allow for more accurate predictions.
Better budgeting, tighter timelines, and smarter resource allocation are all made possible by increasingly accurate planning. This gives project managers even greater confidence and an improved ability to maximize every outcome.
A third significant benefit of using AI-based project management tools is the ability to identify potential problems before they end in project failure. AI’s predictive analytics capabilities allow the system to detect risks earlier and take actions sooner — often preventing problems before they start.
Now is the time to start preparing for AI adoption
If your business would benefit from more successful projects and greater accuracy, the time to prepare for AI-based project management tools is now.
To get ready for a new generation of tools and software, businesses should:
Gather and clean historical project data. This historical data will be plugged into your new tools and used to train the machine learning models built into your project management software.
Strengthen person-to-person connections. Focus on human interactions when training your teams in the new technology. Leveraging AI will push some team members out of their comfort zones, so it’s crucial to strengthen the relationships between your project managers and stakeholders before adopting new technology.
Establish a single transition leader. To successfully integrate a new project management tool into your business, it’s important to have a key point of contact for questions, support, and oversight. Establishing one project champion who has the authority to lead the transformation over the course of several months will help smooth out the changeover, while ensuring the tool is properly implemented.
AI is the future of project management — whether your business is ready for it or not. With less waste and more successful projects across every industry, every company has the potential to achieve significant growth and momentum, if they’re willing to adopt it.
Want more? Escalon has helped over 5,000 companies across a range of industries to optimize routine business functions, like taxes, accounting, HR and payroll, and operate more efficiently. Talk to an expert today.
This material has been prepared for informational purposes only. Escalon and its affiliates are not providing tax, legal or accounting advice in this article. If you would like to engage with Escalon, please contact us here.