The adoption of artificial intelligence (AI) in professional service automation is transforming the industry by automating manual processes and increasing efficiency. The global IT professional services market, valued at $870.05 billion last year, is expected to grow at a 9.5% annual rate from 2024 to 2030. Rocketlane, a SaaS startup, leads this shift with AI-driven solutions that enhance project delivery and customer collaboration. Recently securing $24 million in funding, Rocketlane aims to further develop its AI-enhanced platform, integrating time tracking, resource management, and project accounting. CEO Srikrishnan Ganesan highlights that AI is designed to assist, not replace, human project managers, maintaining ethical standards and improving productivity.

COVINA, Calif., July 2, 2024 /PRNewswire-PRWeb/ -- The adoption of artificial intelligence (AI) in professional service automation and project deliveries is revolutionizing the industry by replacing manual processes with automated, efficient, and productive solutions. Last year, the global IT professional services market size was valued at $870.05 billion and is expected to grow at a compound annual growth rate of 9.5% from 2024 to 2030. (1) The industry is experiencing a significant shift towards AI and automation, necessitating project managers to adapt. Companies like Rocketlane, a SaaS startup serving professional services teams in the U.S., India, and Europe, are at the forefront of AI development, enhancing project delivery through innovative AI-driven solutions. Srikrishnan Ganesan, CEO and Co-founder of Rocketlane, emphasizes the transformative impact of this revolutionary technology "We are integrating AI to enhance the efficiency of project delivery teams. Rocketlane is broadening its capabilities to support seamless execution and customer collaboration throughout the entire customer journey."

In this context, Rocketlane has recently secured $24 million in funding to supercharge its AI-enhanced platform, enabling enterprises to optimize staffing, streamline project deliveries, and maximize profitability. The all-in-one PSA platform consolidates essential functions such as time tracking, resource management, project accounting, document collaboration, and communication into a single, efficient solution.

AI's Impact on Professional Services
The growing presence of AI in professional services is met with a mix of optimism and caution. A significant portion of professionals (44%) are hopeful or excited about AI's impact, while 35% are hesitant and 18% are concerned. Most respondents (81%) believe AI can be applied to their work, though only 54% think it should be. (2)

In the ever-transforming field of project deliveries, technological advancements and changing demands are driving significant disruptions. These include the automation of repetitive tasks, enabling project managers to focus on critical decision-making and value-driven activities. This shift is complemented by the adoption of agile methodologies, which enhance adaptability and improve project outcomes.

While AI technologies are poised to disrupt various aspects of project management, they are viewed as tools that augment rather than replace human project managers. AI in project management, particularly through AI-powered Professional Services Automation (PSA) software, brings several transformative benefits, including:

• Enhanced Selection and Prioritization: Machine learning accurately predicts project success, enabling quicker identification of viable projects and a well-balanced portfolio.
• Support for Project Management Offices (PMOs): AI tools streamline project monitoring, automate reporting, assess risks, and ensure compliance, freeing PMOs to focus on strategic initiatives.
• Improved Project Definition and Planning: AI automates tasks such as scoping, scheduling, and reporting, providing real-time insights and reducing manual effort.
• Virtual Project Assistants: AI-powered assistants manage routine tasks, offer instant updates, and optimize resource allocation, enhancing efficiency and decision-making.
• Advanced Testing Systems: AI-driven testing identifies defects early, minimizes rework, and ensures high-quality project outcomes, particularly in complex projects.
• Evolution of Project Manager Roles: Project managers will evolve into strategic leaders, emphasizing soft skills and leveraging AI to optimize project outcomes and team performance.

Adopting AI in project deliveries could potentially raise project success rates by 25%, unlocking significant value across organizations. Embracing these technological advancements is crucial for organizations aiming to maintain competitiveness. (3)

Ganesan, emphasizes that AI in project deliveries is not about replacing humans but rather assisting them. "I think it's about implementing AI in your software in a way that it's not completely taking control out of a human's hand, but instead assisting them, recommending things, or doing things on their behalf that they can come in and confirm," he states. "That way, people see it as an aid for them rather than as something that's taking away their control".

Challenges in AI Adoption for Project Management
Organizations embracing AI in project management must address several critical challenges and risks, including:

• Data Privacy and Security Concerns: AI systems in project management require access to extensive sensitive data, including personal employee information and confidential project details. The risk of data breaches and the ethical handling of such information are critical issues. Implementing robust security protocols is essential to protect against cyber threats.
• Ethical Implications and Bias: AI decision-making, based on machine learning models, can unintentionally perpetuate biases present in their training data. This can lead to unfair outcomes in project management decisions such as resource allocation and task prioritization. Organizations must focus on designing and training AI systems to be both efficient and ethically sound.
• Lack of Human Judgment: AI lacks the contextual understanding and intuition that project managers possess. Overreliance on AI without considering human expertise can lead to suboptimal decisions and missed opportunities. A balance between AI insights and human judgment is necessary.
• Overreliance and Misinterpretation: AI's insights should be critically analyzed and validated. Project managers must understand AI algorithms' limitations and use them as tools for informed decision-making.
• Implementation Complexity: Implementing AI requires specialized knowledge, infrastructure, data integration, and staff training. Poor planning or execution can result in cost overruns, delays, and project failure.

Rocketlane's Ethical AI Strategy Enhances Efficiency and Control
Ganesan advocates for AI as an assistant, offering recommendations and pre-populated content for users to review and modify, fostering trust and control. He addresses ethical concerns and biases, emphasizing human oversight and user-optimized outputs, and ensures data privacy by isolating customer data. Ganesan highlights that Rocketlane's AI enhances productivity and effectiveness without replacing humans, keeping the human element central to project management and decision-making.

Ganesan outlines how Rocketlane aims to effectively and safely implement AI in its PSA systems by adopting a strategy that emphasizes AI as a supportive tool rather than a replacement for human input. He categorizes AI application in Rocketlane into four main areas:

• AI in Operations: AI assists with tasks like resource management, where it can suggest optimal team configurations for upcoming projects based on user-defined criteria (e.g., workload balance, margin optimization). This allows users to see the impact of staffing decisions before confirming them.
• AI in Project Delivery: Ganesan explains that AI in project delivery focuses on automating mundane tasks, such as drafting emails, capturing meeting minutes, and creating status updates. The AI acts as an assistant that prepares drafts and recommendations for human review and approval, ensuring that users retain control over final communications and project documentation.
• AI in Governance: AI helps identify potential risks in projects early on by monitoring various indicators, such as stakeholder engagement and project update patterns. This early warning system helps prevent projects from suddenly failing without prior warning, thereby enhancing project governance.
• AI in Insights: AI enables users to gain insights from project data through natural language queries. This capability helps users understand project performance, identify trends, and make informed decisions based on the data.

Rocketlane Secures Funding to Advance AI-Powered PSA Platform
Ganesan highlights the importance of professional services teams in delivering projects on time and within budget but notes their reliance on multiple tools can delay projects and cause client anxiety. That's why Rocketlane's has developed it all-in-one PSA platform, to replace various tools like time tracking, resource management, project accounting, document collaboration, and communication.

The Series B funding allowed Rocketlane to raise $24 millon. Co-led by 8VC, Matrix Partners India, and Nexus Venture Partners, will enable Rocketlane to enhance its PSA platform with AI capabilities. The startup plans to introduce AI for capturing client meeting signals and AI templates for emails and documents. Additionally, Rocketlane is upgrading its client portal to provide a more consistent brand experience for enterprises.

"We are thrilled to have the support of our investors as we continue to grow and innovate in the client project delivery space," said Ganesan. "We are excited about our upcoming innovations–especially the very unique AI capabilities and the first-of-its-kind dynamic client portal in this space–that will expand the gap between Rocketlane and the competition."

The growing presence of AI in professional services is reshaping project management by automating repetitive tasks and enabling project managers to focus on critical decision-making. Rocketlane ensures its AI solutions support and enhance productivity while maintaining ethical standards.

About Rocketlane:
Rocketlane is an innovative PSA and client onboarding platform designed to help businesses deliver predictable outcomes, accelerate time-to-value, and boost project profitability. By replacing legacy PSA tools with a unified, client-centric platform, Rocketlane redefines service delivery for modern teams. It integrates onboarding, implementation, and professional services workflows, enabling efficient collaboration and on-time project delivery. With improved communication, collaboration, and project visibility, Rocketlane enhances customer satisfaction and profitability. This transformational tool equips teams with trends and benchmarks to optimize processes, making it the ultimate solution for achieving world-class delivery performance. Learn more at http://www.rocketlane.com.

References
1. "IT Professional Services Market Size Report, 2019-2025." grandviewresearch.com, Grand View Research, grandviewresearch.com/industry-analysis/it-professional-services-market.
2. "Genai in Professional Services: The Future Is Automated." Thomson Reuters Institute, 17 Apr. 2024, thomsonreuters.com/en-us/posts/technology/genai-professional-services-2024/.
3. Millawati, Novita. "Artificial Intelligence in Project Management: Disruptions, Risks, and Adaptation." Institute of Project Management, 13 Dec. 2023, instituteprojectmanagement.com/blog/artificial-intelligence-in-project-management-advantages-disruptions-and adaptation/#:~:text=Introducing%20AI%20in%20project%20management%20may%20face%20resistance,address%20concerns%2C%20build%20trust%2C%20and%20ensure%20smooth%20adoption.

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SOURCE Rocketlane