ARTIFICIAL INTELLIGENCE CAPABILITY AND PROJECT SUCCESS: THE MEDIATING ROLE OF AI-ENABLED PROJECT DECISION-MAKING

Abstract

Pakistani organisations are investing in artificial intelligence (AI), but many projects in construction, IT, banking and public sector delivery continue to go over budget and schedule. In this study, we propose and test a model in which AI capability mainly improves project success by improving project decision making. Based on resource-based view, dynamic capabilities theory and decision-making theory, it connects four variables: AI capability (independent), AI-enabled project decision-making (mediator), project success (dependent) and top management support (moderator). Five hypotheses are put forth. H1: AI capability is expected to increase project success. H2: AI capability is expected to reinforce AI-enabled decision making. H3: AI-enabled decision making is expected to increase project success. H4: AI-enabled decision making is expected to mediate the capability–success link. Top management support is proposed to strengthen the capability-to-decision-making path (H5). The study is a cross-sectional survey of project managers and team leads in Pakistan’s IT, banking, telecom, construction and public-sector project environments, to be analysed using partial least squares structural equation modelling (PLS-SEM). This paper contributes by providing a context-specific model, a measurement plan and a reporting template. Moreover, this paper provides practical guidance to project-based organisations in Pakistan on how to build AI capability to reach the decision, not only the dashboard.