AI in Project Management Market

The global AI in Project Management Market is projected to grow from USD 2.5 billion in 2023 to USD 5.7 billion by 2028, at a CAGR of 17.3% during the forecast period. Platforms utilizing AI and machine learning have the ability to increase the commercial visibility of projects throughout. Project management teams may take speedier action before hazards threaten project completion because of AI’s ability to recognize and anticipate issues far sooner. For better, quicker decision-making, AI in project management employs machine learning and predictive data analytics to deliver more accurate insights into potential outcomes.

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Market Dynamics

Driver: Increase in need to enhance the success rate of projects

Project management software and methodologies such as critical path analysis, Gantt charts, and risk management techniques have been used in organizations for centuries. These tools and techniques have been refined over time and have proven to be effective in managing projects across businesses. However, according to project management experts, only 35% of projects hit production and were completed successfully within time, budget, and planning. Major reasons for project failure are inadequate resources, poor project planning and management, lack of stakeholder engagement & communication, and changing project requirements. Organizations can implement AI-based solutions for effective project management that automates routine tasks. The use of AI in project management has the potential to significantly improve project outcomes, reduce costs, increase efficiency, and reduce costs.

Restraint: Increase in concerns over data privacy and security

Data is often regarded as the most crucial organisational asset, necessitating cyber threat defence. Businesses that adopt new, cutting-edge digital technology expose their corporate data to risk. An organisation will always struggle to defeat these dangers, regardless of how well-prepared it is to cope with cybercrimes. Every innovation that promises to enhance company processes also increases the access points for hackers and thieves into IT systems. This is the main obstacle preventing businesses from adopting solutions for project management that are based on Al. Small and medium-sized businesses can readily utilise the affordable public cloud services (SMEs). These services, however, are more vulnerable to cyberattacks and security issues, whilst small businesses cannot afford a private cloud owing to financial restrictions. Also, the accessibility of project management tools on mobile devices makes them more vulnerable to data leaks and cyberattacks. Thus, it may be concluded that businesses in highly regulated industries are reluctant to embrace cutting-edge Al-based project management systems because to financial limitations or information security concerns.

Opportunity: Cost optimization

In today’s competitive business landscape, cost optimization has become a critical focus for organizations looking to improve their bottom line. One area where businesses can find significant opportunities to optimize costs is project management. Using AI-based project management tools, organizations can identify cost-saving opportunities and improve overall project efficiency. AI-based project management tools can help organizations optimize costs by analyzing historical project data to identify areas where they can reduce spending. AI can analyze data on resource utilization, procurement, and project schedules to identify inefficiencies and cost-saving opportunities. This can help businesses allocate resources more effectively, streamline procurement processes, and reduce project delays, all of which can lead to significant cost savings. In addition to cost optimization, AI-based project management tools can also improve overall project efficiency. By automating routine tasks, such as data entry and reporting, project teams can focus on more value-added activities that can drive better project outcomes. Additionally, AI can provide predictive analytics that helps organizations make data-driven decisions, which can lead to more accurate project forecasting and better overall project outcomes.

Challenge: Selecting the right solutions that align with the organizations’ business needs

As there is no one-size-fits-all PPM solution, it can be quite difficult for project-intensive firms to choose the appropriate solution among the options available to suit their unique business objectives in order to remain competitive and afloat in an environment that is becoming more volatile and more competitive. Furthermore, there is no established method for evaluating a PPM solution's capabilities or service standards. Giving control of business data is a crucial issue that still needs to be addressed even after choosing the solution. Companies working on complicated projects in a regulated environment are highly wary about their data because a data loss might cost the company millions of dollars and damage its reputation.  Also, if the adopted solution doesn't take into account any of the factors, it will have an effect on businesses' everyday operations and lower worker productivity, which could lead to financial losses. 73% of firms do not have enough resources to satisfy demand, and 55% report that their projects and resources are not well-aligned with business objectives, according to Planview's 2017 Project and Portfolio Management Study.

By application, risk management to register at the highest CAGR among applications during the forecast period

The market for AI in project management by application is segmented into project scheduling & budgeting; data analytics, reporting, and visualization; project support & administration; project data management; risk management; resource allocation, planning, and forecasting; project task management, automation, and prioritization; project monitoring; and others (performance tracking and KPI management). The risk management application is projected to grow at the highest CAGR during the forecast period. The activity of detecting, assessing, and preventing or minimizing risks to a project that have the potential to affect the desired outcomes is known as risk management in project management. Typically, project managers are in charge of supervising the risk management procedure throughout the whole course of a certain project. Project managers need a comprehensive grasp of their goals in order to spot any potential obstacles that can limit the team’s capacity to achieve outcomes. This is necessary for successful risk management.

By solution, predictive analytics segments to projected to be the largest market size during the forecast period

Predictive analytics is being used by a greater number of sectors to boost their profitability and competitiveness. Organizations may use predictive analytics to assess variance and variation, regularly improve predictions, and monitor projections alongside past performance. Service teams are given the information they require when needed by making this forecasting data visible and accessible. This strategy can assist businesses in overcoming several obstacles. This involves maintaining the projects within their allotted scope, money, and time.

North America to account for the largest market size during the forecast period

North America is expected to have the largest market share in AI in project management. Project managers are among the roles that artificial intelligence (AI) is beginning to take over in more conventional commercial contexts to supplement or help. Artificial intelligence (AI) has the unique capacity to swiftly evaluate huge volumes of business data, identify patterns, make conclusions from them, and make predictions. AI in project management is essential for organizations due to its ability to estimate project outcomes and monitor particular patterns quickly and correctly.

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Key Market Players

The AI in project management vendors have implemented various types of organic and inorganic growth strategies, such as new product launches, product upgradations, partnerships and agreements, business expansions, and mergers and acquisitions to strengthen their offerings in the market. The major vendors in the global market for AI in project management IBM (US), Oracle (US), Hitachi (Japan), Adobe (US), Microsoft (US), TIS (Japan), ServiceNow (US), Atlassian (Australia), Alice Technologies (US), Aitheon (US), PMaspire (Singapore), Forecast (UK), ClickUp (US), Zoho (India), ProofHub (US), Azeendo (France), Bubblz (France), Lili.ai (France), RationalPlan (Romania), ClearStrategy (Ireland), Saviom (Australia), CodeComplete (Japan), monday.com (Israel), ImageGrafix (UAE), Orangescrum (US), Smartsheet (US), PSOhub (Netherlands), Bitrix24 (US), Asana (US), and Wrike (US).

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Scope of the Report

This research report categorizes the AI in project management market based on component, application, deployment mode, organization size, vertical, and region.

By Component:

• Solutions
  • Robotic process automation
  • Chatbots & intelligent virtual assistants
  • Predictive analytics
  • Speech recognition
• Services
  • Consulting
  • Deployment & integration
  • Support & maintenance services

By Application:

• • Project scheduling & budgeting
  • Data analytics, reporting, and visualization
  • Project support & administration
  • Project data management
  • Risk management
  • Resource allocation, planning, and forecasting
  • Project task management, automation, and prioritization
  • Project monitoring

By Deployment Mode:

• Cloud
• On-premises

By Organization Size:

• Large enterprises
• SMEs

By Vertical:

• Banking, financial services, and insurance
• Retail & eCommerce
• Healthcare & life sciences
• Government & defense
• IT & ITeS
• Energy & utilities
• Telecommunications
• Manufacturing
• Construction & engineering

By Region:

• North America
  • US
  • Canada
• Europe
  • UK
  • Germany
  • France
  • Italy
  • Spain
  • Rest of Europe
• Asia Pacific
  • China
  • Japan
  • India
  • South Korea
  • Australia & New Zealand
  • ASEAN
  • Rest of Asia Pacific
• Middle East & Africa
  • UAE
  • Kingdom of Saudi Arabia
  • Israel
  • Turkey
  • South Africa
  • Rest of the Middle East & Africa
• Latin America
  • Brazil
  • Mexico
  • Rest of Latin America

Recent Developments:

• In February 2023, Hitachi launched the next-generation TXpert Hub to digitalize the transformers. The TXpert Hub enables monitoring by aggregating, storing, and analyzing the information received from the transformer’s digital sensors.
• In January 2023, TIS Inc. announced a capital and business alliance with Vector Consulting Group. Vector would provide its clients with value-added consulting services to build innovative models that enhance the long-term competitive advantage of clients.
• In December 2022, IBM announced an agreement to acquire Octo, a US-based IT modernization and digital transformation services provider exclusively serving the US federal government, including defense, health, and civilian agencies.
• In November 2022, Oracle NetSuite announced updates to NetSuite Analytics Warehouse. The latest updates enhanced the first and only prebuilt data warehouse and analytics solution for NetSuite customers by making it easier for customers to blend relevant data sets and introducing new prebuilt visualization capabilities.
• In October 2022, Microsoft launched Microsoft Syntex, a content AI integrated into the flow of work. It put people at the center, with content seamlessly integrated into collaboration and workflows, turning content from a cost into an advantage. Syntex would automatically read, tag, and index high volumes of content and connect it where needed—in search, in applications, and as reusable knowledge.

Frequently Asked Questions (FAQ):

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