Project portfolio management in the age of artificial intelligence: A review of challenges, key features, and future research directions

The rapid advancement of artificial intelligence (AI) has revolutionized project portfolio management (PPM), as it has in many other areas, by introducing data-driven methods that improve decision-making, risk assessment, and strategic alignment. Unlike traditional project management, which emphasizes individual project execution, PPM requires balancing multiple initiatives to optimize value creation and resource allocation. This paper presents a systematic review of scientific research on the integration of AI techniques into PPM, focusing on their applications, benefits, and challenges. The review synthesizes findings from 73 peer-reviewed studies covering a wide range of AI methodologies, such as machine learning, deep learning, neural networks, reinforcement learning, natural language processing, and hybrid optimization models. These approaches have been applied in diverse fields, including information technology, construction, healthcare, defense, energy, and telecommunications. Analysis shows that AI significantly improves project portfolio performance by predicting project outcomes, identifying interdependencies, optimizing resource allocation, and supporting adaptive strategies in dynamic environments. In addition, advanced AI tools provide project portfolio managers with predictive and prescriptive analytics, transforming PPM from reactive monitoring to proactive governance. Despite these advances, challenges remain regarding data quality, organizational readiness, and interpretability of AI-based models. Concerns about transparency, ethical implications, and integration with existing management frameworks also hinder wider adoption. However, recent developments indicate a growing trend toward hybrid systems that combine AI with traditional decision-making models, increasing both accuracy and practical applicability. This review contributes to theory and practice by synthesizing current knowledge, highlighting research gaps, and identifying emerging directions such as the use of large language models, ensemble methods, and sustainability-focused project portfolio optimization. The findings highlight the transformative potential of AI in advancing PPM and provide valuable insights for researchers and practitioners seeking to design smarter, more adaptive, and more sustainable project portfolio management strategies.