Amidst rapid technological advancements, AI’s application in project management remains underexplored, particularly at the governance level. This study builds on the Task-Technology Fit theory to construct a governance-by-AI framework that aligns AI capabilities with key project governance functions. The proposed framework explains the AI potential for enhancing decision-making, risk management, and stakeholder alignment, improving the effectiveness of project outputs and outcomes. By integrating empirical examples and theoretical insights, this paper contributes to academic literature by providing a framework of how AI allow to detect, predict and simulate in portfolio and project management. We also offer practical guidance for organizations aiming to harness AI’s potential. The findings suggest that strategic implementation of AI can lead to substantial improvements in managing complex projects, providing a roadmap for future research and practical applications in the field.