Hello Project AI enthusiasts,

Welcome to another edition of Project Flux, where we cut through the noise to bring you the AI insights that matter for project delivery.

We’ll take a closer look at:

Strategy & ROI: PwC’s finding that 56% of CEOs see zero returns on AI spending reframes AI risk as a delivery failure rather than a technology gap, underscoring that execution now matters more than investment.

Workforce & Capability: Anthropic’s prediction that up to 50% of entry-level roles may disappear within five years signals a structural shift for project teams, forcing a rethink of task design, talent pipelines, and progression.

Delivery & Evidence: Two major industry reports move AI in project delivery from experimentation to scrutiny, highlighting governance, skills, and process maturity as the real differentiators.

Platforms & Agents: Procore’s acquisition of Datagrid AI points to the rise of agentic intelligence inside construction platforms, where coordination, autonomy, and trust become central delivery challenges.

Data & Memory: ChatGPT’s extended memory capability raises new governance questions around persistence, consent, and data scope, particularly for project environments handling sensitive commercial information.

In This Edition

Flux check-in

56% of CEOs See Zero Returns on AI: Is Your Organisation Burning Cash on Digital Theatre?

A PwC survey reveals a sobering reality: more than half of chief executives report zero return on investment from AI spending despite massive capital allocation. This isn't a technology problem—it's an execution problem. Organisations are investing heavily in AI tools without the foundational change management, skills development, or process redesign necessary for success. Project managers are uniquely positioned to change this. Read the full breakdown →

What Does This Mean for Me?

For project professionals, the 56% figure validates something you've likely observed: organisations are acquiring AI capabilities without implementing them strategically. The gap between tool acquisition and value realisation is precisely where project management disciplines create competitive advantage. Successful AI transformation requires stakeholder alignment, risk management, phased delivery frameworks, and measurable benefits realisation—all core project competencies. This is your moment to lead. Project teams that develop structured AI implementation approaches, establish clear success metrics, and manage change rigorously will deliver results whilst competitors burn cash on digital theatre. The profession must shift from responding to AI adoption to actively shaping it.

Key Themes:

  • Implementation over investment: Technology adoption without strategic change management, skills development, and process redesign fails

  • Project management advantage: AI success requires exactly the capabilities project professionals offer

  • Profession-defining moment: The 56% figure should galvanise development of AI-specific delivery frameworks

  • Value realisation focus: Success hinges on structured approaches, clear criteria, and realistic timelines

Down the Rabbit Hole:

Anthropic's CEO Predicts 50% Entry-Level Job Losses Within Five Years. What Does That Mean for Project Teams?

Dario Amodei, CEO of Anthropic, warned at Davos that AI could simultaneously drive 10% GDP growth and 10% unemployment—creating what he called a "dystopian" scenario. For project professionals already grappling with construction's skills shortage, this prediction demands urgent attention. The question isn't whether displacement will happen, but whether the industry will prepare for it. Read the full breakdown →

What Does This Mean for Me?

We believe Amodei's prediction is a wake-up call the industry cannot ignore. The construction sector, already facing skills shortages and graduate recruitment challenges, cannot afford complacency. However, we challenge the narrative that this is purely dystopian. For project managers, this represents an opportunity to fundamentally rethink project delivery models. If AI handles routine coordination, estimation, and scheduling, what becomes of the project manager's role? The answer lies in strategic value creation: stakeholder management, complex problem-solving, and ethical decision-making. Project-based industries must urgently develop AI-augmented career frameworks that prepare emerging professionals for hybrid human-AI teams. The alternative risks creating a generation whose skills are obsolete before mid-career.

Key Themes:

  • Dystopian or opportunity: Simultaneous GDP growth and unemployment challenges construction's skills shortage response

  • Role redefinition: AI handling coordination, estimation, and scheduling shifts project managers to strategic value creation

  • Graduate pathway crisis: 50% entry-level unemployment threatens professional development and recruitment pipelines

  • Adaptation imperative: Ignoring AI-driven displacement risks creating a generation with obsolete mid-career skills

Down the Rabbit Hole:

Unlock the Future of Digital Construction

The DTSA micro-credential gives young people and career changers barrier-free access to digital twin education – a first for the UK construction industry. Built on 32 months of work at the University of Cambridge’s CDBB, it opens doors to cutting-edge skills in safer, smarter, and more sustainable project delivery.

With portfolio-based assessment (offered as part of an Apprenticeship) and real industry insight, the course creates a clear pathway into digital construction for site teams, aspiring architects, engineers, surveyors, and project owners / funders. In partnership with the Digital Twin Hub and OCN London, the DTSA is shaping the next generation of talent and helping position the UK as a global leader in digital construction and innovation.

Sign up by emailing [email protected]

From Windsor Castle to the QS Coal Face: Two Reports Tackling AI's Role in Project Delivery

Two industry reports—the Windsor Project Summit white papers and the AI4QS (AI for Quantity Surveying) Report—represent a significant milestone in elevating project management discourse. By bringing together Chief Executives, Senior Leaders, and sector experts, these initiatives have created platforms for strategic conversations about the future of the profession. For project professionals, these reports provide essential frameworks for understanding AI's implications at both board level and operational level. Read the full breakdown →

What Does This Mean for Me?

The Windsor Summit's focus on board-level expectations signals that project management is finally gaining recognition at the highest organisational levels. For project professionals, these white papers provide ammunition for conversations with leadership about AI transformation, future-proofing strategies, and the evolving role of projects in driving organisational success. The AI4QS report's emphasis on responsible AI adoption and governance addresses critical gaps where construction has historically lagged. Project managers can learn from the quantity surveying profession's structured approach to understanding AI's implications for professional practice, skills development, and service delivery. Our perspective is that these reports demonstrate how professional communities can collectively navigate technological change whilst maintaining standards and ethics. This is thought leadership with genuine practical application for the project community.

Key Themes:

  • Dual-level approach: Windsor addresses C-suite strategy; AI4QS tackles functional implementation in quantity surveying

  • Thought leadership with application: Expert-led discussions bridge boardroom expectations and delivery realities

  • Adoption barriers matter: Organisational and cultural challenges transcend technical capabilities

  • Sector-specific insight: Detailed functional analysis complements broader industry AI initiatives

Down the Rabbit Hole:

Procore Acquires Datagrid AI: What Agentic Intelligence Means for Construction Project Management

Procore Technologies' acquisition of Datagrid AI signals a fundamental shift in construction technology strategy—from passive data collection to autonomous decision-making. The combination of Procore's project management data with Datagrid's agentic AI could genuinely transform project delivery by automating submittal reviews and RFI responses. However, project professionals should approach this with healthy scepticism about vendor consolidation, data ownership, and professional liability. Read the full breakdown →

What Does This Mean for Me?

We have been saying for a while that platform consolidation often promises seamless integration but frequently delivers vendor lock-in instead. The key concern is whether agentic AI in construction management will genuinely augment project managers' capabilities or simply automate tasks whilst removing professional judgement from critical decisions. For project professionals, this acquisition raises important questions: Who owns the data? How transparent are the algorithms? Who bears responsibility when an AI agent makes a scheduling decision that leads to delays? The technology sector's "move fast and break things" approach doesn't align with construction's risk-averse culture and contractual frameworks. Project managers must demand clarity on how these AI systems make decisions, what data they use, and how recommendations integrate with existing professional workflows and responsibilities.

Key Themes:

  • Platform consolidation risk: Integration promises often deliver vendor lock-in rather than transformation

  • Augmentation vs. automation: Key concern is whether AI enhances or replaces professional judgement

  • Liability and transparency: Unclear responsibility when AI scheduling decisions cause project delays

  • Cultural misalignment: Tech sector's 'move fast and break things' clashes with construction's risk-averse frameworks

Down the Rabbit Hole:

ChatGPT Remembers Conversations from a Year Ago: Project Professionals Beware

ChatGPT's extended memory feature now allows Plus and Pro users to retrieve conversations from a full year back—instantly searchable and permanently stored. While this enhances AI utility for long-duration projects, it creates urgent questions about data governance and professional liability when discussing commercially sensitive project information, design decisions, and stakeholder concerns. Read the full breakdown →

What Does This Mean for Me?

ChatGPT's memory feature is a double-edged sword. The ability to maintain year-long conversational context could genuinely improve how you manage complex projects—but only if your organisation has clear data governance protocols. Storing commercially sensitive information in ChatGPT's permanent memory creates exposure to data breaches and violates client confidentiality obligations under GDPR. The construction industry's tendency to adopt consumer AI without governance frameworks is creating significant liability. You need training not just on AI capabilities, but on professional boundaries when using persistent-memory AI assistants. Your organisations must establish clear protocols: what information can be shared with AI, how memory features are managed, and when data must be purged. The feature demands urgent policy development around AI tool usage.

Key Themes:

  • Transformative utility: Year-long conversational context enables AI assistance across complex, long-duration projects

  • Data governance crisis: Commercially sensitive project information permanently stored raises GDPR and confidentiality concerns

  • Policy development urgency: Organisations need clear protocols for AI tool usage, memory management, and data purging

  • Professional responsibility: Project managers need training on professional boundaries and data protection obligations

Down the Rabbit Hole:

The pulse check

Tip of the week

The Middle Manager AI Paradox: More Tools, More Burnout

Middle managers are caught in a contradiction they can't resolve. They're tasked with championing AI adoption whilst their own roles face automation. They must keep teams motivated through an existential threat they're experiencing themselves. And the data reveals a brutal pattern: the harder they embrace the tools, the faster their engagement collapses.

What the numbers show:

  • Manager engagement dropped from 30% to 27% in 2024—the sharpest decline across any worker category [Gallup 2025]

  • Young managers (under 35) saw five-point drops; female managers dropped seven points [Gallup 2025]

  • 20% of organisations will use AI to eliminate over half their middle management by 2026 [Gartner]

  • 60% of workers believe AI will eliminate their jobs, creating the very resistance managers must manage [MIT Work of the Future]

This isn't about weak resilience or poor stress management. When you hand managers responsibility for both people and machines without adequate support, clear boundaries, or time to master either, burnout is structural and predictable.

For project leaders navigating this: Your credibility comes from supporting your team through uncertainty—not from implementing tools flawlessly. Protecting time for genuine leadership and team development matters more than adoption velocity. That distinction separates leaders who build trust from those who just drive change.

Governance & Security

The past week highlighted critical tensions between AI capability deployment and governance readiness. Google withdrew a medical AI product amid concerns about accuracy and safety in healthcare applications, highlighting the challenges of deploying AI in regulated industries. This cautionary development underscores why Miles Brundage, former OpenAI policy chief, launched AVERI (AI Verification and Evaluation Research Institute) with $7.5M to push for independent safety audits of frontier AI models, arguing AI labs shouldn't 'grade their own homework'.

For project professionals, the governance gap is immediate and material. Our perspective is that organisations deploying AI—whether in construction planning, cost estimation, or risk management—must establish independent verification frameworks before production use. The emerging playbook from Brundage and AVERI suggests third-party audits of model accuracy, bias, and failure modes should become standard practice. Project managers implementing AI tools carry professional liability for algorithmic decisions; independent safety audits provide necessary accountability mechanisms.

Robotics

  • AI Transforms Construction Industry: AI estimation tools reduced takeoff time by 76% in construction, while autonomous robots now print floor plans onto concrete with 1/16" accuracy, marking significant progress in the second-least-digitized industry. Link

  • Nvidia's Jensen Huang: Nvidia CEO Jensen Huang called AI robotics a “once-in-a-generation” opportunity for Europe, arguing it could combine the region’s industrial manufacturing strength with AI to leapfrog the U.S.-led software era. European firms including Siemens, Mercedes-Benz, Volvo, and Schaeffler have announced robotics initiatives, as robotics companies raised a record $26.5 billion in 2025. Link

  • Sunstall Launches Robotic Solar Installation Platform SunRobi: Sunstall unveiled SunRobi, a technology-agnostic, robotic-assisted platform for utility-scale solar construction that augments—rather than replaces—human crews. It combines GPS-guided pile driving, AI-enabled site intelligence, machine-assisted material handling, and digital terrain mapping to improve precision, reduce rework, and increase consistency. Link

  • John Deere's AI See & Spray Covers 5M+ Acres: John Deere's See & Spray AI technology covered 5M+ acres in 2025, saving farmers 31M gallons of herbicide by precisely targeting weeds. Link

Trending Tools and Model Updates

  • Claude Knowledge Base Functionality — Anthropic is working on knowledge bases for Claude Cowork, described internally as persistent knowledge repositories that Claude can reference for relevant context and incrementally update with new information such as user preferences. These enable topic-specific memory management without expanding the main conversation context. Explore Knowledge Bases in Claude Cowork

  • Anthropic Launches Claude Health Integrations — Anthropic launched four health integrations for Claude (Apple Health, Health Connect, HealthEx, Function Health), while Amazon debuted Health AI for One Medical members, marking AI's expansion into healthcare. Project professionals can now integrate personal health data for productivity analytics. Anthropic and Amazon Healthcare AI Announcements

  • Google Stitch Upgrades Released — Google released upgrades to Stitch, its AI-powered development tool, improving code generation and integration capabilities. Enhanced tooling for construction estimation and project planning workflows. Google Stitch Development Tool Updates

  • Claude for Excel Now in Beta — Claude for Excel is now available in beta with support for pivot tables, charts, and file uploads, plus a shortcut to quickly open the full Claude app. Direct integration for project cost analysis and scheduling in Excel. Claude for Excel Beta Access

  • Anthropic Skills Directory Expansion — Skills are now easier to deploy, discover, and build with organization-wide management for Team and Enterprise plans, a directory of partner-built skills, and an open standard (Agent Skills) so skills work across AI platforms. Pre-built workflows for project-specific tasks. Claude Skills and Agent Skills Documentation

  • IBM Granite 4.0 Solves Memory Problem — IBM’s Granite 4.0 uses a hybrid architecture that applies KV cache only on select layers, cutting the memory footprint and inference time by ~10×. This efficiency allows enterprise-grade reasoning to run on consumer laptops instead of costly GPUs. Read further

  • DeepSeek's Engram Decouples Reasoning from Recall — DeepSeek’s Engram stores static knowledge in system RAM instead of GPU memory, achieving ~97% accuracy on long-context benchmarks versus ~84% for standard models and reducing GPU load for recall tasks. Its V4 model, due mid-February 2026, will integrate Engram with enhanced coding and long-context generation. Deeper perspective here

  • Pathway's Baby Dragon Hatchling — Post-Transformer Architecture — Pathway introduced Baby Dragon Hatchling (BDH), a post-Transformer architecture that continually learns like a biological brain with real-time memory adaptation, marking a departure from static Transformer weights toward adaptive, brain-inspired learning systems. Explore the detailed news

  • Anthropic Rewrites Claude’s Constitutional AI — Anthropic is overhauling Claude’s foundational constitution, shifting from simple rule-following to teaching the model why it should behave certain ways and explicitly acknowledging uncertainties about potential consciousness or moral status, hinting at a more reasoning-based alignment strategy. Click for more

  • Claude Opus 4.5 Released as Most Powerful Frontier Model — Anthropic launched Claude Opus 4.5, its most capable frontier model to date, featuring context window compaction for effectively infinite length conversations and a beta for Claude for Excel with pivot tables, charts, and uploads. Details here

Links We are Loving

  • Claude Cowork Explained — Anthropic's community team breaks down Claude Cowork's self-aware AI collaboration capabilities in accessible terms, showing how AI tools can now modify and build on their own work.

  • AI Capability Overhang: Democratising Access — OpenAI outlines the gap between what AI can do and what people and businesses are actually using it for; why democratising access through free tiers and developer APIs matters for widespread adoption.

  • ChatGPT Age Prediction Rollout — OpenAI introduces age-verification for enhanced ChatGPT safety; uses selfies and IDs though trials show accuracy concerns around privacy and potential mislabeling.

  • Identifying Risks in Construction with AI — How AI is transforming predictive risk identification in construction; what contractual frameworks must address regarding liability and foresight expectations.

  • Memory Chip Shortage Unprecedented — Micron reports AI-driven memory shortage is "unprecedented" and extends beyond 2026; critical supply chain bottleneck for AI infrastructure scaling.

  • Baseten Raises $300M at $5B Valuation — AI inference company Baseten reaches unicorn status with Nvidia's backing, signalling momentum in AI infrastructure for multi-model deployment.

  • Apple vs OpenAI: Hardware Competition Intensifies — Apple and OpenAI both exploring dedicated AI devices and chips; competition heating up in hardware-level AI deployment.

  • Anthropic Partners with Teach For All — Anthropic announces training program for 100,000+ educators across 63 countries on AI tools for classrooms; focus on equitable access to AI literacy.

  • Claude Code Sparks 'Selfware' Era — Claude Code represents new autonomous development capability where AI systems build and modify themselves; implications for software development workflows.

  • OpenAI CFO Plans Revenue Share with AI Agents — OpenAI CFO reveals strategy to take percentage cut from transactions built on its platform, signalling shift toward agent-based monetisation.

  • AI Superagents to Transform HR in 2026 — AI superagents poised to disrupt human resources functions; automating recruitment, onboarding, and employee management.

Community

The Spotlight Podcast

Mark Enzer: "If We Don't Define the Future, Someone Else Will"

This week's conversation with Mark Enzer (Prime Minister's Council for Science and Technology) and Gavin Spencer (Association for Project Management) explores a stark paradox emerging from the APM's Windsor Project Summit: individual AI productivity gains aren't translating into organisational returns.

Most organisations haven't defined what they're trying to achieve with AI. Enzer warns the profession risks "sleepwalking into a future" where technology dictates terms rather than serving human needs. His framework is outcome-first: a three-horizon approach anchoring decisions to purpose, federation over centralisation, and starting with decision-critical data rather than attempting to clean everything at once.

Both speakers emphasise the irreplaceable work is unglamorous—data readiness, security, access standards—but it's what separates success from failure. Spencer underscores that humans will always remain central to project delivery, equipped with skills to oversee AI decision-making and maintain control. The future isn't predetermined. It will be shaped by the choices professionals make today.

Catch the complete episode on the Project Flux podcast.

Event of the Week

AI & Big Data Expo Global 4–5 February 2026 | Olympia London, United Kingdom

The AI & Big Data Expo Global brings together 8,000+ enterprise technology professionals, 200+ industry speakers, and 150+ exhibitors across two days of intensive learning. Spanning seven co-located events (AI & Big Data, Intelligent Automation, Cyber Security, IoT, Digital Transformation, Edge Computing, and Data Centre), the expo features keynotes from leaders at Jaguar Land Rover, Deutsche Telekom, Visa, and Citi. Key agenda tracks cover enterprise AI adoption, ethical AI, data governance, AI-driven transformation, and the augmented workforce—all grounded in real-world implementation strategies and live product demonstrations.

For project leaders navigating AI deployment across enterprise infrastructure, this expo cuts through theoretical hype with practical case studies across manufacturing, supply chain, government, and digital transformation. Details here Register for AI & Big Data Expo Global

One more thing

Temporal reasoning continues to be a challenge for AI: Google Gemini is facing the heat!!

That’s it for today!

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See you soon,

James, Yoshi and Aaron—Project Flux 

All content reflects our personal views and is not intended as professional advice or to represent any organisation.

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