Artificial Intelligence (AI) is spreading its wings in the mainstream world, and Project Portfolio Management (PPM) is no exception. Groundbreaking AI systems like ChatGPT have demonstrated the potential to transform organizations. In the realm of PPM, AI can help achieve strategic organizational goals more effectively.
2023 began with the introduction of a groundbreaking AI, ChatGPT. Its impressive capabilities have the world buzzing with the potential to bring about change at the organizational level.
When it comes to PPM, it is pivotal to achieve organizational goals strategically. AI can be an immense help in today’s Project Portfolio Management. But how? Current PPM methods are proving futile as the volumes of data associated with organizations are exponentially increasing. AI can make it easier by bringing the theoretical concept of portfolio optimization into reality.
This article explores the role AI plays in PPM and how it will shape its future.
AI is a strong supporter of PPM, and it can help in PPM’s upcoming development in the following ways.
Portfolio planning solves half of the organizational dilemma. It provides prioritized data and resource deployment to facilitate faster and more precise project execution. Imagine the outcome when AI backs portfolio planning; it will indeed be the cherry on top. AI will not only accelerate the process but also assist in delivering projects on a much larger scale. AI-backed portfolio planning streamlines the allocation of resources and prioritization of projects, facilitating faster and more accurate project execution.
As per a study by MIT Sloan, adopting AI can bring about a massive cost reduction of around 63%.* By automating repetitive tasks and assisting management teams, AI promotes a balanced working environment where critical issues can be addressed more efficiently
AI improves efficiency by increasing accuracy and utilizing real-time data. AI has a higher accuracy rate in mitigating tasks with improved efficiency. AI can also apprehend and refine competitive intelligence, helping associated teams to remain updated with the operations in their external environment.
AI and Machine Learning (ML) can analyze and address project issues, providing proactive solutions and enhancing project management operations. In short, AI is the next-generation assistant that will boost the operations of project managers.
The root problem that organizations face is that they ignore identifying project dependencies and mapping them. This can have a negative impact on the project as a whole and delay its delegation. AI, in association with ML, can quickly identify potential dependencies between various assignments and help the associated project and portfolio managers address these issues.
In the current scenario, many organizations are already implementing AI for project planning and management. Several education institutes like The Project Management Institute and Northeastern University are demonstrating to their students the use of AI to automate and enhance data sets to optimize the value of an investment in any given project. Denoting higher customer success rates and improved customer relationships.
Project execution largely depends on assessing early warning signs. Machine learning and Artificial Intelligence can detect early threat warnings at many levels, including project managers, portfolio managers, project sponsors, and project management offices.
Artificial Intelligence (AI) is a deciding factor in the future of Project Portfolio Management. Soon, it will be the backbone of organizations and supervise tasks at various levels. AI and ML can reduce associated expenditures and improve organizational efficiency drastically. As AI continues to be more deeply integrated into human resources, organizations must be mindful of its potential and utilize it strategically and responsibly.