Incorporating AI and digital transformation into project management

The study, commissioned by the Association for Project Management (APM), investigated the methods and skills required for project delivery in the AI era, examining the evolving landscape of project management in response to shifts in technology. 

The research team, including Dr David Baxter, Dr Hao Dong, Dr MKS Al-Mhdawi, Dr Ranga Abeysooriya and Dr Yixue Shen, conducted a literature review, surveyed more than 500 project professionals and carried out 40 in-depth interviews to identify several key trends on data driven decision-making, agile practices, digital tools and strategic leadership.

Data-driven decision-making has improved project oversight, with 61% of professionals reporting enhanced decision processes through AI integration. 

Southampton’s study emphasises that effective data governance remains critical as organisations adopt AI solutions, and that successful implementation requires ensuring the data is accurate, consistent, complete and timeless.

The research revealed that while the majority of professionals consider digital tools vital for success, they also emphasise that ‘projects are run by people, not by tools or data’.

This balance between technological innovation and human-centred approaches represents an important consideration for project professionals, requiring a strategic blend of digital competencies and leadership skills.

Southampton’s research provides a clear digital skills classification for project professionals, outlining 6 essential competency areas, from foundational digital literacy to strategic digital leadership. 

For organisations implementing digital transformation initiatives, the findings present evidence-based strategies to optimise decision-making, leverage agile methodologies and position strategic leadership effectively within the AI landscape. 

The research findings are also influencing policy development, particularly in public sector organisations seeking to modernise project delivery while maintaining appropriate governance and regulatory compliance.

However, whilst digital skills are increasingly essential, interpersonal and strategic capabilities remain equally crucial, according to the outcomes of the research.

Nicholas said, “Project managers need both technical expertise and strong leadership abilities, and the most effective professionals will balance data-driven insights with human-centred leadership, navigating digital transformation whilst preserving the people-focused core of successful project delivery”.