Ethical, Legal, and Governance Challenges of Project Management Using Artificial Intelligence

Abstract

Artificial intelligence (AI) is reshaping project management by enabling predictive, prescriptive, and adaptive capabilities that address the limitations of traditional, static methodologies in complex and uncertain project environments. This manuscript examines the ethical, legal, and governance challenges that emerge as AI increasingly influences high-impact project decisions across planning and scheduling, risk management, and financial control. The study synthesizes key AI paradigms relevant to project management, machine learning, deep learning, natural language processing, and reinforcement learning, while emphasizing that organizational AI maturity, readiness, and robust data governance are critical prerequisites for reliable and defensible AI deployment. In AI-enabled planning and scheduling, continuous optimization and dynamic resource allocation improve responsiveness but raise concerns related to transparency, explainability, and baseline control. In risk management, AI-driven identification, prioritization, and early-warning systems enhance foresight yet require safeguards against bias, false alarms, and overreliance on automated signals. In project finance, AI-supported cost estimation, budget monitoring, cash-flow forecasting, and earned value management improve financial discipline but intensify requirements for auditability, accountability, and regulatory compliance. Overall, the manuscript concludes that responsible AI adoption in project management depends on embedded governance frameworks that ensure fairness, security, transparency, and clear human accountability across the AI life cycle, positioning AI as a decision-augmentation capability rather than an autonomous authority.