Will the PMO Become the Center of AI Adoption in Organizations?
| Artificial intelligence is reshaping how organizations plan, prioritize, and manage projects. While much of the discussion focuses on new technologies, the real organizational question is governance, and determining how AI is used effectively and responsibly in project environments. Increasingly, that responsibility will fall to the Project Management Office (PMO). Project portfolio management has always been about making informed decisions under constraints such as limited resources, competing priorities, and uncertain outcomes. AI strengthens this process by analyzing historical and operational data to identify patterns, predict risks, and support portfolio prioritization decisions. Machine learning models, for example, can estimate project value, forecast potential risks, and highlight relationships between projects that may create strategic interactions. When combined with optimization methods, these insights support better portfolio selection and resource allocation decisions. Research shows that while AI technologies such as machine learning, expert systems, and decision-support tools are increasingly applied to project environments, organizations often lack structured frameworks for integrating these technologies into management processes. The PMO is uniquely positioned to act as the organizational bridge between technology capabilities and decision-making processes. Rather than treating AI as a purely technical tool, the PMO can integrate AI insights into portfolio governance structures. For example, AI can support project prioritization, resource allocation, scheduling, and risk analysis across the portfolio, while the PMO ensures that decisions remain aligned with strategic objectives. Governance, interpretability, and accountability remain essential components of responsible AI adoption. In practice, this means the PMO will need to take on several new responsibilities. 1. Establish governance frameworks that define how AI models are used in project decision processes. 2. Ensure transparency and interpretability so that portfolio decisions remain explainable to executives and stakeholders. 3. Help build organizational capability by promoting data standards, training project managers to work with AI tools, and ensuring that models are used appropriately. As organizations continue to implement artificial intelligence, the PMO's role will evolve from administrative oversight to strategic orchestration. In an AI-enabled environment, the PMO will manage the interaction between human judgment, data, and intelligent systems to improve the quality of project decisions. |
Posted on: May 18, 2026 08:00 AM
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Project Manager Accountability in the Era of AI
| Artificial intelligence is rapidly reshaping how projects are planned and delivered. Today’s AI solutions optimize schedules, allocate resources, predict risks, and recommend budget adjustments with impressive speed. The results can look precise, data-driven, and highly convincing, but there is an important condition that is easy to overlook. Is AI optimizing part of a project without considering unintended consequences to other aspects? Projects normally have many constraints, and when one element is optimized, others can be affected, sometimes in subtle ways. Scope, schedule, and cost are standard project constraints. When one of these changes, there is likely to be an impact on one or both of the others. A resource optimization model might improve utilization but overload key team members, reduce quality, or increase risk. A cost reduction plan may inadvertently limit scope or reduce stakeholder value. These are not failures of AI. They are the natural consequences of optimizing without project manager oversight, which maintains the overall project-level perspective. Projects may also have interdependencies with other projects in a portfolio or with external factors that may interact dynamically as the project is delivered. Skill availability, environmental concerns, or new industry regulations may all contribute to change. AI can only be considered a comprehensive solution if it accounts for potential unintended consequences. Otherwise, AI-based results must be treated as inputs into a decision process. AI analysis should occur within a wider perspective of the total project and project environment. Project managers need to be leaders who take responsibility for ensuring AI processes benefit the project. |
Posted on: May 11, 2026 09:54 AM
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Reference Class Forecasting Depends on How You Define “Similar”
| Reference Class Forecasting (RCF), popularized by Bent Flyvbjerg, is used to address optimism bias in project cost and schedule estimation. The logic is simple: compare your project to similar completed projects and adjust expectations based on their actual outcomes. It is one of the most influential forecasting innovations in project governance. But a foundational question that requires more attention is: how is similarity defined in the first place? In practice, reference classes are often formed using broad administrative categories such as “light rail,” “metro,” or “heavy rail.” Yet these similarity criteria are frequently underspecified, even though they determine the empirical distribution from which percentile uplifts are calculated. Before any statistical adjustment occurs, a methodological decision has already shaped the forecast. In my recent study using a dataset of U.S. mass transit projects, I examined the sensitivity of RCF to alternative reference class formation. Rather than relying on predefined categories, I applied unsupervised clustering techniques to construct alternative reference classes based on structural attributes such as track length, number of stations, underground proportion, and rolling stock. Cost and schedule outcomes were excluded to preserve the outside-view logic. The results showed that changing similarity groupings altered cost and schedule distributions. Percentile-based uplifts shifted, dispersion patterns changed, and the implied contingency requirements varied across alternative clusters. In other words, RCF outcomes proved structurally contingent on how similarity was operationalized, not merely on statistical adjustment. This does not undermine RCF. The behavioral foundations established by scholars such as Daniel Kahneman and Amos Tversky remain essential. The outside view is still one of the strongest correctives to optimism bias in major projects. However, the findings suggest that the credibility of RCF depends not only on selecting the appropriate percentile (P50, P80, etc.), but also on transparently justifying how the reference class was formed. For practitioners and governance bodies, this has important implications. Reference class formation should be treated as a methodological decision requiring documentation and testing. Specifically:
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Posted on: May 04, 2026 08:00 AM
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The AI Readiness Problem in Project Management
| A mismatch is emerging in many AI-enabled project environments, and it’s not a technology problem. It’s a readiness problem. Today’s AI tools are impressive and accelerating in capability. We can model complex trade-offs, optimize schedules across thousands of constraints, cluster historical projects into meaningful reference classes, and flag budget risks earlier than any human. From a technical perspective, many remarkable capabilities are already available. Are organizations ready to take advantage of the technology? AI is advancing faster than the normal project decision process. Teams are given powerful models, only to be surrounded by old governance structures, incentives, and habits that existed long before AI appeared. The predictable result is that sophisticated analytics collide with an outdated decision environment. A common example is how AI outputs are framed. Many tools present a single “best” answer, represented as the optimal schedule, the lowest-cost plan, or the recommended portfolio priorities. This approach may be technically defensible, but it is behaviorally risky. When results are framed as answers rather than inputs, discussion shuts down. Judgment is replaced by deference, and responsibility quietly shifts from the decision maker to the algorithm. Another gap in organizational readiness lies in expectations. Organizations often expect AI to remove uncertainty, bias, or political tension from decisions. In reality, AI tends to expose these factors. Models surface uncomfortable trade-offs, inconvenient comparisons, and outcomes that challenge prior commitments. If leaders aren’t prepared for that friction, the model gets ignored or worse, selectively used to justify decisions already made. There’s also a skills mismatch. Not technical skills, but decision skills. Many teams are trained to use analytical tools rather than to interrogate assumptions, compare scenarios, or explain why one option was chosen over another. AI doesn’t eliminate the need for those capabilities. It makes good decision-making skills even more critical. The irony is that none of this requires better algorithms. It requires better integration, clear decision ownership, and explicit governance. Organizations need a cultural shift that treats AI as a strong opinion rather than a verdict. The real challenge with AI in projects isn’t what the technology can do. It’s about whether organizations are ready to let it inform judgment rather than replace it. Closing the gap between capability and readiness is where organizations can unlock the greatest value from AI. |
Posted on: April 27, 2026 08:00 AM
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Why Blocking AI in the Workplace Doesn’t Work
| Some organizations still attempt to block large language models (LLMs) like ChatGPT from their networks in an effort to control the use of artificial intelligence (AI) at work. While the intention may be to reduce risk, the reality is that this approach rarely works. AI is simply too accessible. If an employee cannot access AI tools on their work computer, they can easily use them at home or on a personal device such as a smartphone. Many generative AI tools are free or offer free versions. A professional facing a complex problem, whether writing a report, analyzing data, or brainstorming solutions, can open a browser at home and ask an AI system for help in seconds. The same dynamic exists in machine learning. Programming languages such as Python are free (Open Source) and software development environments like Anaconda allow anyone to install powerful analytics tools in minutes. Reusable code for neural networks and clustering algorithms can be found online, and LLMs can be used to quickly generate functional software. Even within organizations, advanced analytics capabilities are already embedded in software applications. Statistical platforms such as IBM SPSS Statistics and Minitab now include neural network modelling, clustering, and other machine-learning capabilities directly in their menus. In other words, AI is already present in the tools that many organizations use every day. Given this reality, trying to keep AI out of an organization is not a realistic strategy. A more effective approach is governance, education, and responsible adoption. Employees need guidance on when and how AI should be used, what data can and cannot be shared with external tools, and how to critically evaluate AI. Training also helps professionals understand the limitations of AI systems, including bias, data quality issues, and the importance of human judgment in decision-making. Organizations can also reduce risk by deploying internal large language models trained only on approved corporate data. These internal systems allow employees to benefit from AI while keeping sensitive information within controlled environments. AI is already part of the professional landscape. The question organizations face is whether employees will use AI responsibly. That responsibility begins with leadership, governance, and education. Rather than blocking access, organizations should focus on guiding responsible AI use. Note: This content is based on confidential interviews with project managers |
Posted on: April 20, 2026 08:00 AM
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