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The rapid advancement of artificial intelligence (AI) systems has had a profound impact on various aspects of business and technology. One area greatly influenced by AI is innovation project management, which plays a critical role in driving organizational growth and success. The purpose of the paper examines the erosion of competencies in innovation project management as a consequence of the increasing reliance on AI systems. The object is innovation project management relying on the expertise, experience, and decision-making capabilities of human managers. However, the introduction of AI systems in project management processes has brought about significant changes. AI-powered tools and algorithms can automate tasks, analyse vast amounts of data, and provide valuable insights and recommendations. While this presents numerous benefits, it also raises concerns about the diminishing role of human competencies in managing innovation projects. AI systems require vast amounts of training data to operate effectively. In the process, they might overlook or undervalue the tacit knowledge and domain expertise possessed by human project managers. The results emphasize the need for project managers to develop new competencies, such as understanding AI capabilities, interpreting AI-generated insights, and effectively integrating AI systems into project workflows. To mitigate the erosion of competencies, organizations should invest in training programs that equip project managers with the necessary skills to work alongside AI systems. Recognizing these challenges and proactively addressing them through training, collaboration, and a balanced approach to human-AI interaction is crucial for organizations seeking to leverage AI while maintaining a high level of project management expertise. [ABSTRACT FROM AUTHOR]