Striking the Right Balance: Managing Benefits and Limitations of AI in Project Management

Companies turning to software with advanced artificial intelligence (AI) capabilities to assist their workforce are reporting its effect on efficiency and overall positive output—especially project managers (PMs). However, equally important is looking beyond the bells and whistles.

Capterra’s recent survey of 2,500 PMs across 12 countries finds that AI arms PMs with effective technology that makes work easier and 90% of PMs report it has delivered a positive return-on-investment (ROI) in the last 12 months. Although it’s important to consider its complexities and current limitations. For instance, an imbalance of AI and human oversight of the results is a common mistake that companies are making. AI requires considerable human involvement.

Also Read: AiThority Interview with Dr. Arun Gururajan, Vice President, Research & Data Science, NetApp

How AI Supports Today’s Project Managers

The early adopters of the latest AI-enhanced tools report considerable benefits, as 46% of the 2,500 PMs surveyed currently use AI in their project management tools. Of this group, 63% report increased productivity and efficiency as a top benefit of AI.

• AI-powered task automation saves time. PMs use AI to help with routine or predictable tasks, freeing up their time to focus on more strategic work and stakeholder management that requires human skills. Our research shows that 88% of PMs feel comfortable delegating tasks to AI.
• Risk management is the top-reported use case. PMs can use AI-powered software to identify and mitigate risks before they occur, saving both time and money. Some examples include running “what-if” scenarios, using natural language processing to analyze and extract insights from large volumes of unstructured data, or integrating data from various systems to identify risks.
• Given AI’s benefits, 94% of PMs are confident in their ability to lead AI implementation projects. From customer service chatbots to manufacturing robots, businesses looking to implement advanced AI systems need PMs who are prepared to lead the effort. Our research shows organizational buy-in is high, exemplified by the fact that PMs currently using AI in their project management practices say their business expects to increase AI investments by 36% in the next year.

Balancing AI’s Hype with Current Limitations

While PMs share AI’s benefits and potential, it’s equally important to ensure the technology isn’t viewed through rose-colored lenses. The term AI can imply capabilities of human intelligence. But these systems are following protocols programmed by people and lack reasoning skills and a grasp of our physical world. Overconfidence could jeopardize any potential gains, as seen in recent stories of a Canadian lawyer and a major airline company falling into legal troubles due to AI hallucinations.

PMs need to take a balanced approach that considers the technology’s current limitations. PMs whose company is using AI cite three common challenges of with the technology:

• Data quality: AI’s ability to comb through large quantities of data is often touted as a key benefit, but the top reported challenge today is with improving data quality. Data errors lead to misguided decisions that can have a significant impact on the business, including hallucinations, biased outputs, and extensive data dependencies. Unfortunately, less than half of PMs report their company monitors outputs for unwanted biases (48%) or audits training data and practices (40%).
• Employee adoption: While it’s been nearly three years since the general public became more aware of AI with the rise of ChatGPT, it’s still a new technology for many workers. PMs are especially taxed as they often work with stakeholders from many business units—each with their own learning curves and levels of resistance to change. According to Capterra’s 2024 Tech Trends Survey, 34% of U.S. businesses regretted a software purchase because they had difficulty onboarding or training new users.
• Data privacy and security risks: Feeding internal or confidential business data into external AI-powered tools can be a high security risk. Many current providers, especially in the generative AI space, aren’t transparent with their practices and protocols. Employees need to understand the risks and technology policies should clearly define the guidelines for their use. Some companies are leading efforts to develop internal AI, developed specifically to be a closed and secure system. Although the costs of maintaining and hosting these programs is still unclear and a stringent cost-benefit analysis should be done prior to greenlighting such a project.

Only half of surveyed PMs say their company has established policies regarding the design and use of AI. Clear guidelines and training are key tools businesses need to use to address these common challenges. Choosing software vendors that prioritize customer service post-sale, strict data security measures, and tangible product innovations can also help.

Also Read: More than 500 AI Models Run Optimized on Intel Core Ultra Processors

Steps for Successful Implementation and Adoption

PMs rate uncertainty of AI’s limitations and biases and misguided trust in its capabilities as the top detriments of the technology’s use in project management. Further education is key as 54% of PMs say their company trains employees on AI’s capabilities and limitations to help mitigate these detriments.

Workers often resist new technology such as AI because of the uncertainty surrounding its role in everyday work. In this case, many workers fear AI may make their jobs obsolete. Clearly distinguishing roles for AI and human workers can help mitigate these fears, and it also provides a better picture on how AI can benefit the organization.

Once workers understand how roles will be divided, it’s important to establish policies for how they should use AI. PMs play a critical role in this step of the implementation of new processes, but they should work with partners in HR and IT departments who developed the policies and can help guide the approach.

What’s Ahead

For PMs who need a place to start, research shows that project risk management, task automation, and predictive analytics are the current top uses for AI. This is where they may see the most—and quickest—ROI.

As AI continues to evolve and improve, PMs will continue to discover and explore its possibilities. This is evident in the expected growth in AI investment in project management in the coming year. Perhaps what makes this development most exciting for PMs using AI is greater ability to shift focus from being a taskmaster to a strategic business partner. The productivity and efficiency gains from this technology means PMs can leverage their expertise and grow their influence, which benefits not only the profession but ultimately their organizations.

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