AI in project management benefits Aussie businesses in 3 key areas

Australian project managers (PMs) identify three areas where artificial intelligence (AI) in project management (PM) benefits their company: task automation, predictive analytics, and risk management. Find out how AI is applied to project management examples in Capterra’s latest project management report.

PMs are seeing significant boosts to productivity and efficiency with artificial intelligence, but it's easy to underestimate its complexity and run into problems. Our data shows that leveraging AI within project management for task automation, predictive analytics, and risk management forge the best path to early return on investment (ROI).

Artificial intelligence (AI) is the ability to replicate human intelligence with technology. AI applies logic-based techniques to interpret events, automate tasks, and complete actions with limited human intervention. Specific AI applications include natural language processing (NLP), machine learning (ML), and speech recognition.

In Capterra’s 2024 Most Impactful Project Management Tools survey, we surveyed 2,500 project managers globally who are currently using AI, including 200 Australian respondents.* We’ll examine the adoption, use cases, and benefits of AI-driven project management tools among the Australian-based project managers.

Positive ROI means more investment in AI tech in project management is forecast 

AI is embedding itself into organisations across all sectors and is transforming decision-making. The capabilities of the technology can help streamline business processes and this has created an interest in terms of investment. This demand is evident in Australia, where the AI market is projected to reach US$6.24 billion this year, with an expected annual growth rate of 16%. [1]

Most Australian project managers who use AI-enabled project management software report success in their current AI investments, with 88% reporting a positive ROI in the last 12 months. This high level of success is likely encouraging increased confidence in the technology, as these project managers expect their businesses to increase AI investments by an average of 37% by 2025.

As AI adoption continues, so will the benefits. Today, 57% of PMs say they feel that increased productivity and efficiency are the top benefits of AI in project management. These boosts can come from automation and task delegation as AI can be “assigned” tasks typically performed by the PM.

Comfort in delegating important tasks to AI is high, with 75% of PMs feeling confident to do so. This delegation not only improves productivity and efficiency but also allows PMs to focus on more strategic aspects of project management, such as decision-making and stakeholder management. This blend of confidence, comfort, and awareness is driving momentum for further investment in AI, highlighting its role as an important tool in modern project management.

However, scepticism towards AI remains…

The majority (86%) of surveyed Australian PMs feel confident in their ability to lead AI-implementation projects. But with only about half of them expressing scepticism toward AI, there’s indication that a considerable portion might underestimate the complexities and limitations associated with AI. Particularly the black-box nature of the inner workings. 

Unless your business has created a custom AI-driven tool from scratch, the reality is you don’t know the limitations of the tool you’re using. Popular vendors in the AI space are not necessarily providing the design details for their models. From the source and type of training data used to the ethical guardrails in place, these existing tools are a black box, meaning the risks should be carefully considered and cybersecurity protocols and policies should be put in place.

The possibility of AI-powered tools such as generative AI giving misleading information can impact the integrity of PM practices. Therefore, it is important to train PMs to increase their understanding of AI's rate of hallucinations, propensity for biases, and data dependencies. This education is crucial to help them effectively oversee AI implementation projects, make informed decisions, and manage the inherent risks.

3 key areas of AI in PM with examples

Current AI capabilities can be effective at automating repetitive tasks, providing more accurate forecasts, and providing PMs with deeper insights into potential risks. So it makes sense we see these as the top current use cases of AI by project managers that are using it. Together, these AI-driven improvements can lead to more efficient project management and increased project success rates, ultimately helping drive business growth and competitiveness.

Let’s take a look at examples of what these top three use cases can look like. 

1. Task automation

The capabilities of AI can empower companies to automate repetitive tasks and streamline routine processes, liberating human resources for more strategic endeavours. AI can handle repetitive tasks such as project status updates, task notifications, and generate reports which are usually resource and time dependent. Automation allows the team to focus more on critical, high-value activities, thereby accelerating project timelines and improving overall output.

• For example, a marketing agency’s PM tool might automatically update the project status and task assignments based on data received by integrating the workflow management software and customer communication platforms. When a client reviews a deliverable and indicates their approval, the AI-enhanced PM tool will know to move the project forward.

2. Predictive analytics

AI-driven predictive analytics can help you design an effective project plan and identify potential risks before they happen. These tools can forecast potential timeline and budget overruns by analysing historical data and finding trends and patterns. This foresight helps you plan more accurately, allocate resources better, and ultimately, execute projects with fewer disruptions.

• For example, construction project managers can use AI to predict the likelihood of price increases in key materials based on market trends and historical data. The system could receive information on a rate increase on materials, such as steel, and notify the PM, allowing them to plan for contingencies and adjust budgets accordingly.

3. Risk management

AI tools can analyse historical data to predict potential project risks and suggest mitigation strategies. By identifying and mitigating potential issues early, you and the project team can address risks proactively and avoid costly delays. 

• For example, let's say you’re starting a construction project. When you input the plan into your PM tool, the system identifies that a materials supplier you’re planning to use has historically delivered late and over budget. The system can bring this to your attention so you can make the determination if a change in supplier is needed or if a risk mitigation strategy would be acceptable.

The role of AI in project management practices

It’s not just popular generative AI tools, such as ChatGPT, that are helping PMs. In fact, genAI and large language models (LLMs) are just one area of artificial intelligence. Let’s take a closer look at the ways project managers can use these tools and the various other types of AI in project management.

Predict and mitigate scheduling risks

29% of PMs predict that AI will have the greatest impact on planning and scheduling in the next 12 months, compared to other areas of project management. PMs can simulate various what-if scenarios—also known as risk modelling—by changing project variables such as due dates, budget, and resource allocations to see the impact they could have. 

• An AI-enhanced scheduling feature might evaluate the impact of a potential delay in a critical supplier's delivery by adjusting the project schedule accordingly and predicting downstream effects on overall project completion. 
• Generative AI can be used to ideate various risks your project might see, help you prepare to discuss the risks with key stakeholders, and provide guidance on mitigation strategies.

Unstructured data analysis

Leverage natural language processing (NLP) to analyse large volumes of unstructured data, such as emails and meeting notes, for task automation and potential risk identification. In fact, 30% of PMs think generating status reports will be greatly impacted by AI in the next 12 months and NLP capabilities could be a key part of this.

• NLP-powered software can identify tasks discussed in a meeting and then go on to create and assign that task for you.
• These tools can also scan through project-related communications to identify warning signs of potential risks, such as frequent mentions of "delays" or "resource shortages."

Scan multiple data points for insights

39% of PMs think predictive analytics is one of the areas AI will have the greatest impact in the next 12 months. When integrated with other systems, AI tools can use data from various sources, such as budget reports and team performance metrics, to generate predictive analytics. 

• For example, AI could combine data from your project management software, enterprise resource planning (ERP), and market research tools to forecast potential budget overruns due to rising material costs. 
• Project timelines and the scheduling of tasks can be improved when AI has access to multiple data sources, such as your email system, time tracking, and/or risk management tools.

These use cases of AI can help you also reap the benefits reported by your peers. It could save you hours, perhaps days, of gathering information and analysing all the different possible outcomes on your own.

PMs expect AI to advance project management practices

As AI technologies continue to advance, PMs report expecting significant advancements in task automation, predictive analytics, and project planning in the next 12 months. If you’re planning to start or increase investment in AI for your project management, we suggest focusing on these three areas for now. These AI-enhanced features will help PMs to focus their time on strategic decision-making and creative problem-solving, anticipate and mitigate risks with greater precision.

AI can save you time and identify ways to optimise project resources, timelines, and outcomes. By preparing for these advancements and actively integrating AI into existing workflows, businesses can empower project managers to deliver projects more successfully.