Abstract:
This research investigates the current state of project governance structures within Sri Lanka's software industry and assesses organizational readiness for Artificial Intelligence (AI) adoption in project governance. It addresses the misalignment between existing governance practices and the transformative capabilities of AI, which can lead to inefficient AI integration and missed opportunities. Through qualitative methodology, including semi-structured interviews with ten professionals from Sri Lankan software companies, the study identifies challenges and barriers limiting the effective integration of AI tools into existing governance frameworks. The findings inform actionable recommendations for enhancing AI-driven project governance, aligning with Sri Lanka's unique socioeconomic context and globally recognized best practices. The study contributes critical insights enabling Sri Lankan software firms to effectively integrate AI into their project governance frameworks, fostering sustainable digital transformation and enhancing global competitiveness. Furthermore, this study addresses gaps in the existing literature by providing empirical evidence on AI adoption challenges specific to the Sri Lankan software industry. It offers practical guidance for aligning project governance frameworks with AI capabilities, which is essential for software firms in emerging economies aiming to leverage AI for improved project outcomes. The research also contributes to the broader understanding of organizational readiness factors that influence successful AI integration in project governance.