AI-Enabled Contractual Knowledge and Risk Governance in EPC Projects: A Conceptual Framework and Research Agenda

Artificial intelligence (AI) is transforming the way project-based organizations create, interpret, and use knowledge for decision-making purposes. In the context of complex engineering, procurement, and construction (EPC) projects, where contractual ambiguity and risk allocation present significant challenges, AI technologies such as large language models, retrieval-augmented generation, and knowledge graphs present new opportunities for improving contractual knowledge management and governance. This study presents a theory-driven framework that explains how AI capabilities contribute to the acquisition, integration and application of contractual knowledge. This framework strengthens contractual risk management, improves decision quality, and ultimately enhances project performance. Based on the Knowledge-Based View, Dynamic Capabilities, and Socio-Technical Systems theory, the framework identifies the mechanisms through which AI generates organizational value, as well as the factors that influence its effectiveness, including contract complexity, trust in AI, and data/model governance. The study formulates six theoretical propositions and proposes an agenda for empirical validation, positioning AI as an enabler of governance and learning in the digital transformation of project management.