The 2025 Industry Report on Cost, Schedule, and Risk

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AI Readiness in Project
Planning: What’s Real, What’s
Not, and What to Do Next

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Executive Summary

AI is dominating boardroom agendas. But behind the strategy decks, estimation teams are still relying on spreadsheets, outdated data, and disconnected systems. This gap between ambition and reality is one of the most urgent risks facing cost, schedule, and risk planning today.

In Galorath’s recently published 2025 Industry Report on Cost, Schedule, and Risk, most organizations state that AI is a strategic priority. But adoption remains limited; integration is patchy, and confidence in outputs is low. The result? A growing disconnect. Executive teams expect fast returns from AI adoption, but the delivery teams responsible for estimation often lack the tools, data, and the support needed to meet those expectations. This report breaks down that disconnect and shows how to close it.

For executive leaders overseeing large-scale project planning, the disconnect between strategy and execution is no longer theoretical. It is a barrier to both operational outcomes and business performance. Closing that gap requires deliberate action. Leaders must stop waiting for AI to mature and start building readiness across systems, data, and teams on their own terms.

The core insight is clear: Leaders must act deliberately to turn AI potential into results. Building the right foundation across systems, data, processes, and workforce capabilities is essential to realizing measurable impact.

Key insights from the 2025 survey:

Limited AI Adoption
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0%

of organizations use AI in cost, schedule, or risk workflows

Low Automation Maturity
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0%

automate less than half of their project & cost estimates

Automation as Primary Need

0%

want AI to automate repetitive tasks in cost & schedule workflows

Confidence Crisis

0%

of professionals are “very confident” in their current cost estimation accuracy

Strategic Belief in AI

0%

say AI is important to their long-term estimation strategy

Data Access as Top Blocker

0%

cite poor access to quality data as a leading barrier to improving estimation

The State of AI in Project Planning

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Despite the buzz, most organizations are working to discover how to implement AI.

AI has become a central talking point in strategic planning conversations, but most organizations are still in the early stages of adoption, and few have fully defined where AI fits within core project workflows. Moreover, even fewer have built the technical infrastructure or cross-functional alignment needed to realize its value.

Only 37% of organizations currently use AI in cost, schedule, or risk workflows. Even among those adopters, implementation tends to be shallow. AI tools are most commonly used for visualization, reporting, and simple dashboard generation. These applications can improve clarity, but they do not fundamentally change how organizations model uncertainty, allocate resources, or adjust to shifting timelines.

Automation trends follow a similar pattern. Nearly three-quarters of respondents automate less than half of their project and cost estimates. This includes 45% who report automating between 26% and 50%, and 28% who automate less than 25%. Only 4% have achieved automation above the 75% threshold.

Why Most AI Tools Fall Short

Most AI tools in use today are not built for cost, schedule or risk estimation. Common limitations include:

Built for generic enterprise analytics, not estimation logic.

Focused on reporting dashboards, not forecasting accuracy.

Cannot parse work breakdown structures or scope logic.

Not integrated with project controls or cost models.

Lack built-in assumptions aligned to project lifecycle phases.

Without this alignment, AI remains peripheral. It does not shape how project decisions are made or how risks are mitigated. Instead, estimation continues to rely on spreadsheets, manual calculations, and historical assumptions that are often out of date. These methods are familiar, but they are not scalable. They lack the flexibility and speed that today’s project environments demand.

Getting the full value of AI requires more than deploying new software. Organizations must invest in systems integration, model transparency, and role-based workflows that reflect how planning actually happens. Until AI is embedded within estimation and forecasting, not just attached to reporting, its impact will remain limited.

Strategic Importance vs. Operational Readiness

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Ambition is high. Confidence is not.

The gap between what leaders want from AI and what teams are currently equipped to deliver is one of the most urgent challenges in cost, schedule, and risk planning.

In the 2025 survey, 57% of respondents said AI is either “somewhat important” or “very important” to their long-term estimation strategy. This reflects the strong executive belief that AI can improve accuracy, accelerate decision-making, and surface risks earlier in the project lifecycle.

But belief is not the same as readiness.

Only 12% of professionals surveyed said they are “very confident” in the accuracy of their organization’s current cost estimates. A majority, 54%, said they are only “somewhat confident.” This cautious posture highlights an underlying truth. AI strategy may be taking shape at the leadership level, but it has not yet reached a point of operational maturity.

That disconnect comes with consequences. When executives assume AI is delivering better forecasts, but estimation teams are still using manual tools or inconsistent data, the risk of misalignment grows. Projects are more likely to exceed budgets, miss timelines or experience change order volatility. These problems are not caused by a lack of interest in AI. They are symptoms of unclear priorities, outdated workflows, and gaps in communication between strategic and technical teams.

The survey also revealed that confidence in estimates did not correlate directly with tool availability. In some cases, even teams that had access to advanced tools lacked the training or governance needed to use them effectively. This reinforces the idea that tools alone do not improve estimation. What matters is whether the organization has invested in enabling its people to use those tools in the right context, with the right data, and toward clearly defined goals.

Strategic intent must now be matched with operational execution. AI cannot close the confidence gap on its own. It must be part of a larger shift toward consistent practices, shared metrics, and real-time collaboration across teams. Leaders who understand this distinction will be better prepared to turn their AI strategy into measurable project outcomes.

Barriers to Adoption

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Five structural problems that keep AI from delivering.

Most organizations are not rejecting AI. They are struggling to implement it effectively. The issue is not awareness or curiosity. It is a series of structural barriers that prevent estimation tools from delivering value.

According to the 2025 survey, professionals identified five main blockers to improving cost and schedule estimation:

Each barrier touches a different layer of the organization. Data issues prevent AI tools from generating reliable outputs. Integration gaps isolate information across departments, preventing coordinated planning. Strategic misalignment leads to confusion about where to apply AI, and outdated tools introduce friction and manual rework into otherwise scalable processes. Finally, training shortfalls leave teams unprepared to interpret or act on AI-driven insights.

The survey’s open responses confirmed that these problems are not isolated. Many professionals reported limited support for training, lack of role-specific guidance, and widespread use of legacy platforms that require manual data cleanup. Others described confusion over leadership priorities or frustration with tools that failed to match actual workflows.

Taken together, these issues form a kind of invisible ceiling on AI performance. Even when new tools are available, they cannot operate effectively without clean data, well-integrated systems, a clear use case, and a skilled workforce. Most organizations today lack some combination of those elements.

Where the Process Breaks: Survey responses point to recurring friction points:

Teams are siloed, causing breakdowns in process flow.

Estimates rely on outdated, fragmented tools.

Leaders set goals but don’t define how AI fits.

Training programs are inconsistent or nonexistent.

Clean data is not available when needed for modeling.

The implication for leadership is clear. If these barriers are not addressed directly, AI will remain on the margins of project planning. It will be used for isolated reporting tasks or dashboard enhancements, rather than becoming a driver of forecast accuracy, risk modeling, or decision support.

Organizations that want more from AI must invest first in the conditions that allow it to succeed.

What Leaders Want from AI

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Practical expectations, not innovation theater.

The demand for AI in cost, schedule and risk estimation is not driven by hype. It is driven by pain points. Most teams are not looking for futuristic features or speculative capabilities. They are asking for targeted, practical support that improves day-to-day planning.

When asked what capabilities would make AI truly valuable,
respondents identified four clear priorities

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Automating repetitive tasks

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Enhanced reporting capabilities

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Integration with existing systems

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Real-time data integration

These are not abstract goals. They reflect operational gaps that exist today. Manual tasks continue to dominate estimation workflows, forcing teams to spend time on data entry, formatting, and reconciliation. Real-time data remains out of reach for many, with updates flowing slowly across disconnected platforms. Predictive modeling is used inconsistently, if at all, and simulation-based estimation is still considered aspirational in most environments.

The survey responses reveal a workforce that is not resistant to AI — it is underserved by existing systems. Teams are asking for tools that help them react faster, model uncertainty more effectively, and reduce the risk of late-stage surprises. These needs are tightly linked to business performance. When estimates are accurate and dynamic, projects are more likely to stay on budget and on schedule.

The fact that automation and integration top the list is especially important. It suggests that AI is viewed not as a solution in search of a problem, but as a way to solve problems that have already been defined. Estimators and program managers do not want AI to take over. They want it to reduce low-value effort, close visibility gaps, and support better judgment.

What is missing is not demand. It is delivery.

Most current platforms do not offer these capabilities out of the box. Generic tools may support trend analysis or provide high-level visualizations, but they are rarely designed with cost breakdown structures, risk contingency modeling, or program phase alignment in mind. As a result, the most valuable features remain difficult to access or scale. 

This Is Not a Wish List: These are baseline expectations, not moonshots

Automate repetitive and manual entry.

Model risk before it causes rework.

Connect data across project, finance and procurement.

Simulate budget or schedule impacts using real assumptions.

For AI to move from experimental to essential, organizations will need to invest in platforms that reflect how teams actually estimate. That means solutions tailored to real planning logic, integrated with upstream and downstream systems, and supported by teams who understand both the data and the domain.

Recommendations for C-Level Action

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AI impact starts with strategic ownership, not technical upgrades

Leaders believe AI can transform how cost, schedule, and risk are managed. But without deliberate action, that transformation will stall. Teams need more than software. They need direction, infrastructure, and support from the top.

These six recommendations are designed to help C-level leaders close the gap between AI’s potential and its actual impact:

Use domain-specific AI, not generic tools 

Platforms made for finance or BI won’t cut it in project estimation. Look for tools that understand scope logic and lifecycle modeling.

Fix data flow before scaling automation 

AI relies on clean, structured, real-time data. If systems are fragmented or inconsistent, automation efforts will struggle to scale or deliver usable results.

Make security foundational to every deployment 

AI systems that handle project or cost data must include role-based access, tamper-evident logs, and alignment with standards like NIST 800-53 or IRS PUB 1075. Leaders must insist on zero-trust architecture, explainability, and human oversight as baseline requirements, not optional features. 

Define high value use cases and align to real workflows 

Start with areas where AI can add value without disruption. Pick repeatable use cases, such as refund issue triage, eligibility detection, or audit prioritization, that reflect real business priorities and support measurable outcomes. 

Enable your people, not just your platform 

AI does not replace expertise. Train your teams, document best practices, and define oversight models. The goal is to make people more effective, not to remove them from decision-making. 

Measure success with trust and accuracy, not just speed 

AI is only valuable if its outputs are reliable. Prioritize confidence in forecasts, explainability of decisions, and transparency across the lifecycle over raw processing speed or volume. 

These steps do not require an overhaul. Most organizations already have the urgency and partial infrastructure in place. What is missing is coordinated ownership of security, workflows, and workforce enablement.

Leaders who act now can embed AI into the operational fabric of project planning. Those who wait may inherit gaps in trust, transparency, and accountability.

Self-Assessment Scorecard

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Is your organization ready for AI in cost, schedule, and risk planning?

AI adoption in project environments is not binary. It is a maturity journey. Some organizations are still evaluating. Others are piloting tools with limited use cases. A few have reached integration, using AI to improve estimation speed, accuracy, and transparency.

AI Readiness Checklist

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We have structured, centralized data sources that support cost, schedule & risk analysis

Our estimation systems are integrated with upstream and downstream workflows

We have defined specific use cases where AI supports decision-making or automation

Our teams receive regular training on cost estimation tools and modeling techniques 

We measure estimation success based on trust, accuracy and variance reduction 

We have internal champions or working groups focused on AI integration 

Our leadership has prioritized AI investment in cost, schedule and risk environments

AI outputs are validated against historical data and used to inform future estimates 

Cross-functional teams collaborate when building or refining estimation models 

We are actively replacing manual processes with rule-based or model-based automation 

This checklist is not a technical audit. It reflects how prepared your organization is to move beyond experimentation. The goal is not to check every box on day one. It is to understand where you are today and where to invest next.

Organizations that treat AI as a strategic capability will make faster, more confident decisions. Those that treat it as a plug-in will struggle to demonstrate value.

This report is part of a deeper look at how cost, schedule, and risk planning are evolving. Access the full 2025 Industry Report on Cost, Schedule, and Risk to see where the biggest gaps and opportunities exist.

Access The Report