The Future of Enterprise Portfolio Management in the Age of Generative AI

Abstract

Starting today and due to the advent of generative AI, traditional enterprise portfolio management (EPM) is seriously disrupted, creating new opportunities for organizations to accelerate strategic alignment, optimize resource allocation, and foster innovation. This paper explores how generative AI will have the transformative power to create actionable insights and improve decision-making in EPM. Therefore, organizations can surpass traditional portfolio management's limitations and adapt to dynamic and real-time adjustments enabled by the use of predictive analytics and scenario modeling through AI-driven tools. AI's role in enhancing portfolio optimization, risk management, and project prioritization is discussed in this article, alongside challenges centered on data quality, workforce, and ethical considerations. It further explains the integration between AI and the existing enterprise system to provide a more encompassing, flexible approach to portfolio management. The paper applies generative AI in the real world through case studies from some leading organizations, which show how generative AI has been used to optimize portfolio performance, manage risks, and allocate resources efficiently. The paper ends with the vision for the future of EPM through generative AI, where generative AI powers more agile and data-driven decision-making processes. With each growing step of AI technology, it follows that businesses need to invest money to benefit from AI tools and train their staff for the transformation of AI-enhanced portfolio management.