The integration of artificial intelligence (AI) into project management (PM) is reshaping how projects are planned, executed, and monitored across industries. Despite increasing global adoption, empirical evidence from developing contexts, particularly within Africa’s construction sector, remains limited. This study examines the influence of AI on the PM lifecycle, alongside associated challenges and sustainability outcomes, using Ghana’s construction industry as a case. A quantitative approach was employed, with data collected from project managers and construction design teams within D1K1 firms. The findings reveal a positive but weak relationship between AI adoption and PM lifecycle performance (r = 0.297, p < 0.01), indicating incremental rather than transformative effects. Descriptive results show moderate agreement on AI-related challenges (composite mean = 3.741), with skill gaps emerging as the most significant constraint (mean = 3.845). In contrast, AI demonstrates a strong contribution to sustainable construction practices (composite mean = 4.005), particularly in waste reduction (mean = 4.214) and sustainability evaluation (mean = 4.095). These findings suggest that while AI enhances efficiency and sustainability, its full potential is constrained by organisational and capability-related factors. The study highlights the need for targeted skill development, strategic investment, and stronger industry–academic collaboration to support effective AI integration in emerging economies.