AI in Project Management Market Size, Share, and Trends 2024 to 2033

AI in Project Management Market Size and Forecast

The global AI in project management market size was USD 2.58 billion in 2023, calculated at USD 3.03 billion in 2024 and is expected to reach around USD 12.75 billion by 2033. The market is expanding at a solid CAGR of 17.32% over the forecast period 2024 to 2033. As organizations recognize the potential benefits of AI in improving project efficiency, reducing costs, and enhancing decision-making, the demand for the AI in project management market is expected to grow.

AI in Project Management Market Key Takeaways

• The North America AI in project management market size reached USD 950 million in 2023 and is expected to attain around USD 4,780 million by 2033, poised to grow at a CAGR of 17.53% between 2024 and 2033.
• North America dominated the market with the largest revenue share of 37% in 2023.
• Asia Pacific is expected to expand at a solid CAGR of 23.81% in the forecasted years.
• By component, the solution segment has generated more than 73% of revenue share in 2023.
• By component, the service segment is projected to grow at the fastest CAGR of 18.32% during the forecast period.
• By deployment, the on-premises segment has held a major revenue share of 65% in 2023.
• By deployment, the cloud segment is expected to register significant growth in the market over the forecast period.
• By organization size, the large organization segment has accounted more than 75% of revenue share in 2023.
• By organization size, the SME segment is expected to grow at the fastest rate in the market during the projected period.
• By application, the project scheduling & budgeting segment has captured the biggest revenue share of 23% in 2023.
• By application, the project support & administration segment is expected to grow at the fastest rate in the market during the projected period.
• By industry vertical, the BFSI segment dominated the market with the highest revenue share of 23% in 2023.

U.S. AI in Project Management Market Size and Growth 2024 to 2033

The U.S. AI in project management market size was exhibited at USD 670 million in 2023 and is projected to be worth around USD 3,370 million by 2033, poised to grow at a CAGR of 17.53% from 2024 to 2033.

North America dominated the AI in project management market in 2023. North America has led the way in adopting AI across multiple industries, including project management. The region has seen a notable rise in AI-driven project management tools and platforms. The emphasis has been on using AI for automation, predictive analytics, and decision support to improve risk management, project planning, resource allocation, and project success.

• In December 2022, IBM revealed an agreement to purchase Octo, a U.S.-based provider of IT digital transformation and modernization services that only works with the US federal government, including defense, health, and civilian agencies.

Asia Pacific will be considered the fastest-growing AI in project management market in the forecasted years. The AI in project management market in the Asia Pacific region has experienced rapid expansion. Nations like China, India, Japan, and South Korea have made substantial investments in AI technologies for project management. AI-driven project management platforms have enhanced project workflows for better communication and collaboration and optimized the use of resources.

• In March 2024, Microsoft launches new initiatives to skill and scale AI transformation in Singapore. Moreover, Microsoft is reinforcing its commitment to advancing AI capabilities for businesses and employees through new skilling initiatives with SkillsFuture Singapore (SSG) and NTUC Learning Hub.

Market Overview

A system is introduced into the project management cycle to support human work by leveraging machine learning vast processing capabilities to extract meaning and aid decision-making. The primary aim of AI in project management is to add value throughout the project. AI can analyze project needs, resource availability, and team capabilities to optimize resource allocation, assign tasks, and define priorities intelligently.

AI in project management market can assist businesses or project managers in job distribution and resource allocation, match the right staff with the necessary skills and responsibilities. It aids businesses in evaluating resource utilization, skill sets, and availability to enhance resource allocation across different projects as well as in recruitment by selecting the best candidates for the project.

AI in Project Management Market Growth Factors

• Organizations' rising use of data-based insights is expected to drive the growth of the AI in project management market.
• AI's ability to identify and predict concerns at a considerable rate can positively impact the AI in project management market.
• The ongoing need for better and more efficient project management solutions can fuel the AI in project management market growth further.
• The growing need to increase project success rates can boost growth of the AI in project management market.

AI in Project Management Market Scope

AI in Project Management Market Dynamics

Driver

Rising demand for cost optimization across various industries

AI-based project management systems can improve overall project efficiency and reduce costs. By automating repetitive tasks like data entry and reporting, project teams can focus on more valuable activities, leading to better project outcomes. Additionally, AI can provide predictive analytics to help businesses make data-driven decisions and improve overall project results and forecast accuracy. The significant cost reduction benefit of AI has received positive feedback from various industries, promoting the rapid adoption of AI technologies and driving the AI in project management market.

• In May 2024, Persistent Systems announced the launch of SASVA, a pioneering, manageable, and secure enterprise AI platform leveraging Large Language Models (LLMs) and Machine Learning (ML) to accelerate software releases with faster time-to-market and improved efficiency.

Restraint

Ethical concerns

The AI in project management marketraises several ethical concerns, including bias in decision-making, transparency, and accountability. AI systems can unintentionally perpetuate existing biases in the data they are trained on, leading to unfair or discriminatory outcomes. Furthermore, the opaque nature of certain AI algorithms can make it difficult to understand and justify their decisions. Addressing these ethical issues is essential for building trust and acceptance of AI technologies.

Opportunity

Intelligent assistance and decision support

The AI in project management market provides real-time support and advanced decision-making. AI-powered analytics generate real-time contractor project data, which enables project managers to receive immediate feedback on project performance and potential issues. These systems can often determine the optimal course of action by offering real-time match quoting. As a result, project managers can make quick and accurate decisions regarding critical project information.

• In April 2024, Deltek launches the Gen AI tool Dela for smarter project management. Consultants using Deltek technology to run their projects now have a new intelligent companion at their side, Dela, an AI-powered assistant that can provide guidance and operational support.

Component Insights

The solution segment dominated the AI in project management market in 2023 and is projected to sustain its position throughout the forecast period. A system is introduced into the project management cycle to support human work by leveraging machine learning's vast processing capabilities to extract meaning and aid decision-making. The primary aim of AI in project management is to add value throughout the project. AI can analyze project needs, resource availability, and team capabilities to optimize resource allocation, assign tasks, and define priorities intelligently. These models continuously learn from new data, improving their accuracy over time.  AI-powered intelligent virtual assistants are gaining popularity in project management.

The service segment is expected to grow at the fastest rate in the AI in project management market during the forecast period. Organizations can enhance processes, boost productivity, and reduce costs by adopting AI project management services. These services help to minimize managerial errors, automate tedious tasks, save time and money, and provide actionable insights. The growth of this segment is driven by the increasing number of companies providing AI project management solutions.

• In October 2023, The EY organization and IBM announced the launch of EY.ai Workforce, an innovative HR solution that helps enable organizations to integrate artificial intelligence (AI) into their key HR business processes. This marks a pivotal next step in the collaboration between the companies and a significant milestone in the role of AI in increasing productivity within the HR function.

Deployment Insights

The on-premises segment dominated the AI in project management market in 2023. On-premises deployment allows organizations to control their data and infrastructure fully by maintaining stringent security standards. This is crucial for those with strict regulatory requirements or sensitive data projects. Moreover, on-premises AI solutions often integrate with existing project management tools, such as task management, collaboration, and time-tracking software.

The cloud segment is expected to register significant growth in the AI in project management market over the forecast period. Cloud deployment involves hosting AI-powered project management systems on external cloud platforms. In this model, businesses access software and services via the Internet without maintaining the underlying infrastructure. Benefits include scalability, flexibility, automatic software ease of installation, and lower initial cost updates.

• In April 2024, Cloud Software Group Inc. and Microsoft Corp. announced they are deepening their collaboration through an eight-year strategic partnership agreement. The agreement will strengthen the go-to-market collaboration for the Citrix® virtual application and desktop platform and support the development of new cloud and AI solutions with an integrated product roadmap.

Organization Size Insights

The large organization segment dominated the AI in project management market in 2023. This is due to large organizations increasingly embracing AI solutions in project management to enhance efficiency in managing complex and large-scale projects. These AI solutions automate repetitive tasks, analyze extensive datasets, and optimize project workflows. As a result, they contribute to improved productivity, accelerated project delivery, and cost reduction.

The SME segment is expected to grow at the fastest rate in the market during the projected period. This trend is fueled by the growing accessibility of cost-effective and user-friendly AI tools, as well as the necessity for small and medium-sized enterprises (SMEs) to improve their project management capabilities to compete with larger organizations and enterprises. Companies are collaborating with service providers to deploy and oversee AI solutions in project management.

Application Insights

The project scheduling & budgeting segment dominated the AI in project management market in 2023. The focus of this segment is on leveraging AI technology and solutions to monitor project progress, assist project teams, and automate administrative tasks. Enhancing project management efficiency, promoting collaboration, and ensuring effective project oversight are all facilitated by the application segment for project monitoring, support, and administration.

The project support & administration segment is expected to grow at the fastest rate in the AI in project management market during the projected period. AI algorithms can suggest the best resource allocation strategies by analyzing project needs, resource availability, and skills. This maximizes resource use, minimizes conflicts, and ensures that tasks are matched with appropriate resources. Additionally, AI-driven NLP tools can enhance communication effectiveness in project management.

Industry Vertical Insights

The BFSI segment dominated the AI in project management market in 2023. The technological advancements have enabled AI to transform industries worldwide, such as BFSI, manufacturing, and healthcare. AI algorithms can analyze large amounts of data. This includes regulatory requirements and risk indicators. Such practices ensure that regulations are adhered to and potential risks are identified. The increasing use of artificial intelligence in the BFSI industry streamlines compliance processes, enhances risk management, and improves overall project governance.

AI in Project Management Market Companies

• Atlassian
• Adobe Inc.
• ALICE Technologies Inc.
• Amazon Web Services Inc.
• Google LLC
• IBM Corporation
• Intel Corporation
• Microsoft Corporation
• Oracle Corporation
• ServiceNow
• TIS Inc.

Recent Developments

• In March 2023, for its major capital projects, ALICE Technologies partnered with The Beck Group, a building and architecture firm. Using the power of generative AI, ALICE Technologies’ building pioneering platform helps general contractors and owners around the world plan, bid, and carry out their large-scale infrastructure and commercial projects more successfully and at a lower risk.
• In May 2023, IBM announced it would offer in-kind grants worth $5 million to support school cybersecurity resiliency in response to the growing danger of ransomware attacks against educational institutions worldwide. The IBM Education Security Preparedness Grants program has grown significantly since it was established in 2021.
• In October 2022, Atlassian announced a partnership with Accenture, a professional services company, to allow organizations to drive more value from technology investments, enhance employee and customer experiences, embrace change, and create new business value through enterprise agility services.

Segments Covered in the Report

By Component

• Solution
• Services

By Deployment

• Cloud
• On-premise

By Organization Size

• SMEs
• Large Organizations

By Application

• Data Analytics, Reporting, & Visualization
• Project Task Management, Automation, & Prioritization
• Project Scheduling and Budgeting
• Risk Assessment and Management
• Project Data Management
• Resource Allocation and Forecasting
• Others (Project Quality Management, Project Communication Management, Project Support and Administration, Project Monitoring, Etc.)

By Industry Vertical

• BFSI
• Healthcare
• Manufacturing
• Government and Defense
• Retail & E-commerce
• IT & Telecom
• Energy & Utilities
• Others (construction, Media & Entertainment, etc.)

By Geography

• North America
• Asia Pacific
• Europe
• Latin America
• Middle East & Africa