IPM’s Data Digest: August 2025 – Prompt Engineering for Project Managers: Unlocking AI’s Potential

Introduction

Artificial Intelligence (AI) has swiftly become a game-changer in the world of project management. Yet, to fully harness its potential, project managers need more than just awareness—they need a new skill: prompt engineering.

Prompt engineering is the art and science of crafting effective instructions (or “prompts”) for AI tools like ChatGPT, Gemini, or Claude. These tools are only as good as the questions or commands they receive. This makes prompt engineering one of the most important emerging skills for project professionals looking to stay ahead of the curve.

Whether you’re managing Agile workflows or leading a Waterfall-based project, understanding how to guide AI with precision can unlock unprecedented efficiency.

What is Prompt Engineering?

At its core, prompt engineering involves designing and refining inputs to AI systems to receive useful, relevant, and accurate outputs. Think of it as the way you talk to your AI assistant—just like a briefing to your team, your message needs to be clear, contextual, and goal-oriented.

For example, instead of asking a vague prompt like “Create a plan,” a project manager skilled in prompt engineering might write: “Create a detailed, five-phase project implementation plan for a software development project using the Waterfall methodology. Include timelines, resource estimates, and risk considerations.”

This specificity allows AI to return results that are far more actionable.

The Role of Prompt Engineering in Project Management

Importance of Prompt Engineering for Project Managers

As AI becomes embedded in project management platforms—like Asana, ClickUp, and Jira—project managers must learn how to communicate effectively with these systems. Prompt engineering empowers PMs to:

• Get better-quality reports.
• Identify risks quickly.
• Automate repetitive tasks intelligently.

The ability to formulate high-quality prompts is rapidly becoming a competitive edge.

How Prompt Engineering Enhances Project Efficiency

Prompt engineering boosts efficiency by reducing the back-and-forth typically required when working with AI tools. When project managers ask the right questions the first time, they get better answers—faster.

This translates to better time management, smoother stakeholder updates, and stronger project outcomes.

Techniques for Effective Prompt Engineering

Crafting Clear and Specific Prompts

Clarity is king. Start by identifying the who, what, where, when, and why of your request. Instead of asking, “Help me manage my project,” ask: “Summarise key deliverables and milestones for a six-month marketing campaign targeting the UK healthcare sector.”

Iterative Refinement of Prompts

Even seasoned users don’t always get perfect answers on the first try. Prompt engineering is an iterative process. Test, tweak, and improve based on the AI's responses.

Tip: Use follow-up prompts like “Make it more concise” or “Add examples” to refine outputs.

Using Context and Examples for Better Prompts

Context-rich prompts yield context-rich results. Including previous data, KPIs, or stakeholder needs can guide the AI more effectively. Examples also act as anchors for consistency.

Applications of Prompt Engineering in Project Management

Improving Project Planning and Organisation

AI can generate timelines, work breakdown structures, and stakeholder maps. Prompt engineering makes these outputs sharper and more usable.

Example Prompt: “Create a RACI matrix for a construction project involving an architect, contractor, and local council.”

Enhancing Communication and Reporting

Tired of writing weekly reports? Prompt AI to draft summaries based on your notes or meeting transcripts.

Example Prompt: “Summarise this meeting transcript into a project update report with bullet points and action items.”

Supporting Decision-Making with AI Prompts

Prompt engineering can help you explore scenarios or model risks. Example Prompt: “List pros and cons of outsourcing development for an app launch in Q4, considering budget constraints and time-to-market.”

Explore the IPM AI Project Professional® course to build strategic decision-making skills powered by AI.

Best Practices for Writing AI Prompts

1. Keeping Prompts Clear and Concise: Avoid ambiguity. Break down long instructions into shorter parts. Don’t overload the AI with multiple objectives in a single prompt.
2. Providing Sufficient Context for Better Results: Give AI the context it needs—project size, industry, timeframe, and tools involved. This reduces assumptions and increases output relevance.
3. Specifying Desired Outcomes in AI Prompts: Define what kind of output you expect: report, checklist, timeline, slide deck. The format matters.

Common Mistakes to Avoid in Prompt Engineering

Overloading Prompts with Excessive Information

While context is helpful, stuffing your prompt with too many variables confuses AI models. Keep it digestible.

Bad Example: “Write a report covering timelines, costs, team conflicts, software choices, launch delays, competitor analysis, and marketing plans.”

Split complex prompts into multiple, manageable ones.

Lack of Context and Clear Instructions

The opposite mistake: being too vague.

Poor Prompt: “Fix this.”

Better: “Rewrite this project status update to sound more optimistic and suitable for a C-suite audience.”

Benefits of Mastering Prompt Engineering for Project Managers

Improving Decision-Making and Efficiency

With well-crafted prompts, project managers can explore options faster, generate insights instantly, and reduce uncertainty in planning.

Optimising Task Automation and Reducing Errors

Prompt engineering enables smarter automation. Instead of “automate this task,” you can instruct:

“Create an automated email sequence to alert stakeholders every Friday if project milestones are not updated.”

This level of detail helps AI act like a skilled assistant, not just a tool.

Conclusion

Prompt engineering is more than just a tech buzzword—it’s a core skill for modern project managers. Whether you're optimising Agile sprints or delivering complex infrastructure projects, mastering how you prompt AI tools can transform how you work.

At the Institute of Project Management, we believe the future of project success lies in mastering the interface between humans and AI. Our IPM AI Project Professional® programme is designed to equip professionals with the tools and thinking needed to thrive in this AI-powered era.