and the AI-Stakeholders
FEATURED PAPER
By Massimo Pirozzi
Rome, Italy
ABSTRACT
The advent of Generative Artificial Intelligence (GAI) is reshaping the landscape of project management and stakeholder dynamics. This paper explores the multifaceted impact of AI on traditional stakeholder relationships, examines how AI can enhance stakeholder management, and proposes strategies for effectively “managing” AI as a stakeholder itself, i.e. an AI-Stakeholder. Furthermore, it deepens into the ethical considerations surrounding AI’s role in stakeholder interactions and concludes by summarizing the risks and opportunities presented by this technological and relational revolution. As AI becomes increasingly integrated into project management processes, understanding its influence on stakeholder perspectives is crucial for successful project outcomes and organizational adaptation in an AI-driven future.
THE IMPACT OF AI ON TRADITIONAL STAKEHOLDER DYNAMICS
In general, AI impacted traditional stakeholder dynamics because it not only redefined the stakeholder roles, but also caused shifts in power dynamics, changes in stakeholder communication and engagement, evolutions in stakeholder expectations, and challenges in stakeholder identification and analysis.
In fact, first, the integration of GAI into project management processes redefines traditional roles and responsibilities. GAI can perform tasks that were once the domain of human stakeholders, such as data analysis, risk assessment, and even decision-making support. For instance, AI-driven tools can analyze large datasets to identify patterns and trends, providing project managers with actionable insights. This shift not only enhances efficiency but also allows human stakeholders to focus on more strategic and creative tasks. In the context of project management, the traditional roles of stakeholders are evolving due to the capabilities of GAI. Project managers and teams are now able to delegate routine and repetitive tasks to AI systems, freeing up time for more complex and strategic activities. This transition requires a rethinking of how tasks are assigned and the roles each team member plays. AI’s ability to process and analyze data at unprecedented speeds means that project managers can make more informed decisions quickly, which can significantly impact the project’s direction and outcomes.
For example, AI can assist in project scheduling by predicting potential delays based on historical data and current project progress. This predictive capability allows project managers to proactively address issues before they escalate. Similarly, AI can help in resource allocation by analyzing team performance and workload, ensuring that resources are used efficiently and effectively. As a result, the role of the project manager is shifting from a focus on administrative tasks to a more strategic role that emphasizes leadership and decision-making.
The integration of Generative Artificial Intelligence (GAI) into project management has then profoundly altered the traditional landscape of stakeholder dynamics. Historically, stakeholders were, and obviously still are, defined as human entities – individuals, groups, or organizations with vested interests and influences in a project’s outcomes. However, the emergence of sophisticated AI systems has introduced a new dimension to this framework. Indeed, AI now occupies a unique position in the stakeholder ecosystem. While not a stakeholder in the conventional sense – being not human and intrinsically lacking personal interests or direct stakes in outcomes – AI systems significantly influence project trajectories, decision-making processes, and ultimately, project success. This influence stems from AI’s capacity to process vast amounts of data, generate insights, and provide recommendations that shape project direction and stakeholder interactions.
The redefinition of stakeholder roles in the AI era manifests in several ways:
- AI as an Influencer: GAI systems, through their analytical capabilities and recommendation engines, can sway project decisions much like influential human stakeholders.
- AI as a Mediator: in complex multi-stakeholder scenarios, AI can serve as an impartial arbiter, analyzing conflicting interests and proposing balanced solutions.
- AI as a Stakeholder Proxy: in some cases, AI systems may represent aggregated stakeholder interests, especially in scenarios involving large-scale data analysis of customer preferences or market trends.
- AI as a Team Member: when integrated into project teams, AI assistants function as pseudo-stakeholders, contributing to discussions and influencing outcomes without traditional stakeholder motivations.
This evolving role of AI then necessitates a reevaluation of how we define and categorize stakeholders in modern project management frameworks, and we will deepen this issue in one of the next sections.
In addition, the introduction of AI into stakeholder ecosystems has led to a significant shift in power dynamics. Traditionally, power within stakeholder networks was often distributed based on factors such as financial investment, strategic importance, or regulatory authority. The advent of AI has introduced a new power center – one based on data control and analytical capability. Key aspects of this power shift include:
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How to cite this paper: Pirozzi, M (2024). The Stakeholder Perspective in the Generative Artificial Intelligence Scenario and the AI-Stakeholders; PM World Journal, Vol. XIII, Issue VIII, August. Available online at https://pmworldlibrary.net/wp-content/uploads/2024/08/pmwj144-Aug2024-Pirozzi-Stakeholder-Perspective-in-Generative-AI-Scenario-and-AI-Stakeholders.pdf
About the Author
Massimo Pirozzi
Rome, Italy
Massimo Pirozzi, MSc cum laude, Electronic Engineering, University of Rome “La Sapienza”, Project, Program and Portfolio Manager, Principal Consultant and Educator. He is a Member of the Executive Board and an Accredited Master Teacher, of the Istituto Italiano di Project Management (Italian Institute of Project Management). He is certified as a Professional Project Manager, as an Information Security Management Systems Lead Auditor, and as an International Mediator. He has Credentials in Generative AI, in Data Landscape of GenAI for Project Managers, in Prompt Engineering for Project Managers, and in Sustainable Project Management.
He is a Researcher, a Lecturer, and an Author about Stakeholder Management, Relationship Management, and Complex Projects Management, and he authored or coauthored more than 50 papers in 5 different Countries. In particular, he is the Author of the Book “The Stakeholder Perspective: Relationship Management to enhance Project value and Success”, CRC Press, Taylor & Francis Group, Boca Raton (FL), U.S.A., October 2019. Due to the acknowledgement of his comments on stakeholder-related issues contained in Exposure Draft of The Standard for Project Management – 7th Edition, he has been recognized as one of the Contributors and Reviewers of the PMBOK® Guide – Seventh Edition, and he received the Certificate of Appreciation for Excellence for his volunteer contributions to the Project Management Institute and the project management profession in 2020.
Massimo Pirozzi has a wide experience in managing large and complex projects, programs, and portfolios in national and international contexts, and in managing business relations with public and private organizations, including multinational companies, small and medium-sized enterprises, research institutes, and non-profit organizations. He worked successfully in several sectors, including Defense, Security, Health, Education, Engineering, Logistics, Cultural Heritage, Transport, Gaming, Services to Citizens, Consulting, and Web. He was also, for many years, a Top Manager in ICT Industry, and an Adjunct Professor in Organizational Psychology. He is registered as an Expert both of the European Commission, and of Italian Public Administrations.
Massimo Pirozzi is an Accomplished Author and an International Editorial Advisor of PM World Journal. He received three 2020 PM World Journal Editor’s Choice Awards for his featured paper “Project Management for Evidence Based Medicine” (co-authored with Dr. Lidia Strigari), for his Article “Project communications 1.0 and 2.0: from information to interactivity” and for his report from Italy titled “The fight against Coronavirus disease (COVID-19) from the perspectives of projects and of project management”. He received also two 2019 PM World Journal Editor’s Choice Awards for his featured paper “Stakeholders, Who Are They?”, and for his report from Italy titled “PM Expo® and PM Maturity Model ISIPM-Prado®”, and a 2018 PM World Journal Editor’s Choice Award for his featured paper “The Stakeholder Management Perspective to Increase the Success Rate of Complex Projects”.
Massimo can be contacted at max.pirozzi@gmail.com.
