6 Stages to Run a Successful AI Project
What are the artificial intelligence stages in a project, and how do you run an AI project well? Check out our proven, step-by-step methodology that helps project leaders manage each stage of the AI lifecycle with clarity and confidence. From data prep to operationalization, these six stages turn complexity into action so your AI project can deliver value—not just models.
Written by Kathleen Walch, CPMAI, Ron Schmelzer, CPMAI • 11 June 2025
Successfully running an AI project takes more than tools and talent. It takes structure. This article introduces the key stages of AI project execution—helping teams move from business alignment to real-world impact. Whether you're managing your first AI initiative or refining your approach, these six stages will keep your team focused, adaptive, and delivering value.
Why AI projects need their own methodology
AI projects bring unique challenges. They’re iterative by nature, driven by data quality, and influenced by shifting variables—from training data to model behavior in production.
Traditional project management approaches provide a solid foundation through clear scoping, stakeholder alignment, and risk management. But AI projects also require flexibility, experimentation, and continuous learning that benefit from an additional layer of structure.
The CPMAI™ methodology complements traditional project practices by introducing a structured, six-stage approach tailored to the realities of AI and ML implementations.
Not sure if your organization is ready to start an AI project? Here’s what needs to be in place before you begin.
These stages guide your team from business alignment to real-world deployment. While they’re presented in order, they’re meant to be iterative. Your team may move back and forth as new insights or challenges arise.
Phase 1: Business understanding
Define the problem. Clarify goals. Determine whether AI is the right solution.
This phase ensures alignment between business needs and technical direction, starting with identifying the most relevant pattern of AI for the problem you’re solving. It sets expectations early and prevents wasted effort.
Phase 2: Data understanding
Explore the data landscape: What data exists? Is it accessible? Does it reflect the real-world context of the problem? Strengthening data governance practices early can help avoid surprises downstream.
This phase helps teams identify data limitations early and make adjustments as needed.
Phase 3: Data preparation
Prepare the data for modeling. This includes cleaning, labeling, standardizing, and deduping as needed.
Data quality has a direct impact on model performance. Remember: garbage in is garbage out. Investing time here reduces downstream risk.
Phase 4: Model development
Select the appropriate model. Train and tune the model using the data you’ve just prepped.
The model development phase should be driven by measurable goals established in earlier phases, not just experimentation for its own sake.
Phase 5: Model evaluation
Evaluate the model against business and technical criteria. Does it perform reliably? Does it align with project goals?
This is the phase where AI quality assurance plays a key role by evaluating performance, fairness, and alignment with a trustworthy AI framework.
Phase 6: Model operationalization
This is where you put the model into the real world. Integrate it into business workflows. Establish monitoring and feedback loops.
This final phase ensures that AI delivers real value and that your AI solution can adapt as data, priorities, or conditions change. It also demands leadership across disciplines, alignment between technical and business stakeholders, and confidence in change management.
That’s why the right skills for AI project managers are essential—not just to launch the model, but to guide it through the real-world complexities of scale and iteration.
Why iteration matters
These six phases aren’t one-and-done. AI projects often require adjustments as data shifts, goals evolve, or models behave unexpectedly.
That’s why this step-by-step approach supports iterative development, letting teams revisit and refine each phase as they learn.
What happens without a clear process?
AI projects that skip steps—or start with model selection before aligning on business goals—risk failure. Missed expectations, siloed teams, and poor model performance often trace back to execution gaps.
For common pitfalls and real-world lessons, see Why AI Projects Fail: Overpromising and Underdelivering.
Start by aligning on business needs, defining your success criteria, and using a proven framework like CPMAI to guide each phase.
Following a step-by-step methodology like CPMAI helps ensure that AI projects are not only technically successful, but strategically valuable. Keep these six stages in focus, and you’ll be better equipped to turn innovation into impact.
Get Your Team Ready for AI Project Success
Take the free CPMAI™ course to understand the phases, frameworks, and foundations of successful AI project delivery.

Project Management Institute
Author | PMI
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