Effective use of AI in project management
Artificial intelligence (AI) is scientifically defined as “the ability of a machine to imitate human abilities such as logical thinking, learning, planning and creativity”. AI enables technical systems to perceive their environment, process what they perceive and solve problems in order to achieve a defined goal. The integration of AI into the modern working world is changing it massively. As AI continues to evolve, the use of innovative technology will be incorporated into many job descriptions. Studies by renowned consulting firms have determined that around 80 percent of all project management tasks that are still performed by people today will be taken over by AI applications by 2030.
The complexity and multi-layered nature of projects continues to increase in a world characterized by innovation. As a result, efficient project management is constantly facing new requirements and challenges. Nowadays, AI-based solutions are already being used as standard in some areas such as marketing or customer support. They are specifically designed to increase both efficiency and effectiveness in project management. AI-based solutions enable a much more precise insight into project-specific data. AI solutions also help to improve communication and therefore collaboration within the team. This is a key success factor for the implementation of the project. At the same time, project progress can be monitored in real time.
AI solutions are being used more and more frequently in project management. It is necessary to distinguish between traditional AI solutions and solutions based on generative AI. The main difference is that traditional AI focuses on specific, clearly regulated tasks, while generative AI works more creatively. Nowadays, AI-based solutions can be used in every area of the company. In marketing, for example, traditional AI enables the development of campaigns and product recommendations, while generative AI is even able to develop advertising campaigns that are tailored to the target group. In production, on the other hand, traditional AI increases the quality and efficiency of production. Generative AI helps to optimize production processes or suggest new product designs.
AI is divided into several sub-areas, all of which can be used for different scenarios. Machine learning focuses on learning from existing data without the need for programming. It is used to solve classification, regression and cluster analysis problems. AI solutions for speech recognition and processing deal with the ability of computers to understand and process human speech. The third sub-area – artificial neural networks – uses artificial neurons to map learning processes and predictions. Methods such as deep learning and convolutional neural networks help to learn from data and make predictions. The deep learning method is used successfully in speech recognition and the natural sciences.
Effects of AI on the project roles
If AI is introduced into the management of a project, the various stakeholders benefit in a different way. AI is not intended to replace human activity, but to support the project participants in their work. For this reason, the possibilities of AI from which the various roles within the project specifically benefit are listed in more detail here:
Supporting the project manager
Solutions based on AI make a significant contribution to lowering the project costs incurred and reducing the implementation time of a project. Through the meticulous analysis of completed projects, AI also helps to reveal existing optimization potential.
Support for individual project team members
If project staff use AI solutions – for example to automate monotonous, tedious tasks – they free up time for other activities. At the same time, important tasks can be prioritized and clearly structured.
Support for the management
Managing directors can use AI to automatically generate reports on the current status of the project. At the same time, AI solutions can be used to identify risks that could jeopardize the project at an early stage. Once the project has been completed, AI helps to identify optimizations.
Support for external partners and freelancers
Even external service providers or freelancers can benefit from AI. Similar to team members, such solutions help to automate monotonous tasks. But it can also be used to improve collaboration and plan resources more precisely.
The possibilities that AI currently offers for project management will continue to grow in the future. Companies that want to benefit from AI should therefore get to grips with this future technology and keep their knowledge up to date. This is the only way to achieve major breakthroughs.
Advantages and disadvantages of using AI in project management
AI can already be used in project management for relatively simple tasks, such as creating documentation and descriptions. AI makes a tangible contribution to improving the project process and helps to design tasks in a targeted manner, thereby helping to improve the quality of the project outcome. The advantages of using solutions based on AI can be seen in the following points:
AI leads to an increase in productivity
AI can be used to automate time-consuming, monotonous tasks so that employees can concentrate on the strategic elements. In terms of the project, AI can improve reporting, monitor project progress in real time and lead to greater efficiency. This increases the profits that can be made and boosts customer satisfaction.
AI facilitates team collaboration
In project management, regular and effective communication is a key reason for project success. To ensure this type of communication, AI can streamline the communication requirements and help to promote team collaboration through regular and continuous communication.
AI helps to make better decisions
AI can be used to process immense amounts of data. Patterns and trends can be identified through analysis, helping to make the right decisions. At the same time, forecasts can be made and existing risks can be better assessed. In this way, projects can be better managed.
AI ensures that project risks are minimized
AI-based solutions support project managers in proactively reducing potential risks. In addition to identifying potential risks, AI also helps to determine the probability of risks and helps to assess the potential impact of such risks on the course of the project.
AI supports project monitoring
Tracking by AI can be carried out in real time, so that an update on the existing budget, schedule and task responsibility can be provided at any time. In this way, project risks can be kept in view and countered if they arise. This provides valuable support in avoiding delays in the project process and budget overruns.
AI optimizes task management and resource planning
AI can analyze the qualifications and availability of all employees who are to become part of the team. This allows upcoming tasks to be assigned to the best qualified employees. The individual strengths of the employee are always taken into account so that they can be optimally utilized.
In addition to the advantages just listed, the integration of AI in the company also entails disadvantages and risks. The main disadvantages for employees and companies are listed below and should always be taken into consideration:
AI can lead to difficulties with data protection
A high-quality AI must be “trained” with a large amount of data. However, the larger the amount of data, the easier it is for outsiders to misuse or steal this data. Companies that use AI in project management should therefore do everything they can to ensure their data security.
AI must only use correct data material
To avoid decisions being made on the basis of incorrect or distorted data, companies should do everything they can to ensure the accuracy and quality of the data used. Otherwise, this can lead to incorrect recommendations from the AI, which could (severely) jeopardize the success of the project. Ethical questions regarding the data must also be clarified.
AI needs human acceptance
A successful introduction of AI-based solutions in the company must meet with human acceptance – especially among those who will later work with the AI systems. This is particularly relevant as many employees fear that they will lose their jobs sooner or later due to AI.
Small and medium-sized companies in particular can be overwhelmed by the necessary investments in AI infrastructure. It is particularly important for them to keep an eye on the cost factor, especially as increases in efficiency and savings only become apparent in the medium to long term.
Introducing AI to project management in companies
The use of AI in project management can seem intimidating at first, but the right approach makes things much easier. In order to use AI solutions for work, the following steps should be followed successively. The first step is to select the right AI-based solution for project management and the appropriate tools. To do this, the first step is to determine the unique needs of your own organization. In order to make the right decision, suitable AI solutions that are available should be identified and compared. The focus should be on features such as predictive analytics, automated reporting and natural language processing.
The next step is to integrate the selected AI solutions into the existing system. The first step is to determine the interaction of the AI-based solutions with the system already implemented – such as customer relationship management (CRM), enterprise resource planning (ERP), software development or various communication platforms or messenger services. It is important to work with real IT professionals to ensure compatibility at all times and to address any integration challenges. Proper integration ensures that the AI used collects data from relevant sources and thus provides a holistic view of the ongoing projects.
Once the choice of AI-based software to be used has been made, the project team must be trained in how to use this AI and interpret the results. Training the project team is crucial in order to utilize the full potential of AI in project management. Training must cover both the technical aspects of using AI as well as skills for evaluating the insights generated by AI. This is the only way to ensure that those who deal with AI in their day-to-day work benefit optimally. Those involved in the project need to understand how AI can improve their work – whether it is automation or the provision of recommendations acts.
Another basic requirement is the quality of the data used so that it is secure and protected. In order to prevent unauthorized access to data, data breaches and data loss, solid IT security measures must be established in the company when using AI-based software. These include, for example, encryption, secure user authentication and should also include regular security audits. The AI products to be used should therefore comply with important industry standards and regulations, such as data protection rules like the European General Data Protection Regulation.
in order to protect personal and project-related data.
AI systems need to be continuously “fed” with additional, up-to-date project data to improve their accuracy and effectiveness. AI systems need a solid database and need to be continuously fed with more up-to-date information as the AI learns and improves in the longer term. Regularly reviewing and refining the data also helps the AI to adapt to the project environment, providing more valuable insights and information. More accurate and up-to-date data also enables the AI to predict trends, identify risks to the project at an early stage and recommend strategies that ultimately lead to better decisions.
How AI will change project management in the future
It can be assumed that AI-based solutions will continue to improve as a result of technical development and will therefore be able to take on more and more tasks in project management. As a result, AI will significantly change project management as it is organized today. Human intelligence and artificial intelligence will work together better and better to achieve more efficient and productive work results. To overcome the complex challenges of modern project management, AI-based solutions are primarily used to automate routine tasks and analyze big data.
In the future, AI-based solutions will help to further optimize efficiency within the project, in project management and in project activities. Constantly recurring processes will be optimized and, by analyzing complex issues, AI will also help to better understand even complex contexts. As technological developments continue to advance, AI-based systems within project management will make workflows more efficient and at the same time constantly improve the quality of work results.
