TL;DR
Despite billions invested in AI, most organizations report little impact because projects falter from poor alignment, weak governance, and lack of skills. PMOs are critical to bridging this gap: providing portfolio visibility, managing risks, aligning resources, and ensuring disciplined execution so AI initiatives deliver real business results.
Companies Are Investing Billions Into AI
Last week, The New York Times published a story online with a headline that every project leader should take notice of: “Companies Are Pouring Billions Into A.I. It Has Yet to Pay Off.”
What stood out in the reporting was not just the size of the investments — IDC estimates enterprise spending on AI will jump 94% this year to nearly $62 billion — but the results: McKinsey & Company found that 8 in 10 companies are experimenting with generative AI, yet just as many report no bottom-line impact.
The article cites data from analytics firm S&P Global that the percentage of companies abandoning AI pilots has soared from 17% in 2023 to 42% in 2024.
And those realities, as the reporting made clear, aren’t just about the technology itself. Many projects stumble because of human factors: resistance from employees and customers, lack of skills, or poor alignment with organizational priorities.
For those of us in project management, this rings true. These are the same challenges that can derail digital transformations, M&A integrations, or compliance initiatives. The difference now is that project success and failure are no longer an inside conversation — they’re front-page news.
This is why the role of the Project Management Office (PMO) has never been more critical.
Why PMOs Are Central to AI’s Next Chapter
Every AI initiative is, at its core, a project management challenge. These programs span business functions, compete for scarce resources, and unfold under heightened executive and regulatory scrutiny. Without strong governance, portfolio-level visibility, and disciplined execution, they risk joining the growing list of abandoned pilots.
History shows us this pattern. In the 1980s, companies invested heavily in PCs. In the 1990s, the internet. In the 2000s, cloud computing. Each wave eventually transformed industries, but only after years of careful adoption and thoughtful execution. AI will follow the same trajectory. The organizations that cross the gap first will be those that manage their projects best.
The lesson is clear: AI will not deliver results on its own. It will only deliver results if the projects around it succeed.
That is the opportunity — and the mandate — for PMOs.
Far from being administrative, PMOs are the strategic enablers of transformation. Their role is to:
- Keep high-stakes initiatives on track
- Anticipate and manage risks across complex programs and portfolios
- Align scarce resources with the most critical priorities
- Provide leadership teams with clarity to make confident decisions
At Prism, we see this every day as PMOs use our platform to bring visibility and accountability to their most complex initiatives — whether AI, digital transformation, or regulatory compliance.
The New York Times article by Steve Lohr captured the paradox of today’s AI investments. For PMO leaders, it’s also a reminder: the spotlight is on. Project success and failure have gone mainstream. And that means the work of the PMO has never been more important.
AI will transform industries. PMOs will determine how fast. The question is: how ready is your organization to deliver?