Project management plays a critical role in ensuring project success and organizational competitiveness, particularly in Saudi Arabia’s rapidly evolving construction sector. Artificial intelligence (AI) has emerged as a transformative technology with the potential to improve project performance through enhanced operational processes and managerial decision-making. This study examines the impact of AI integration on construction project outcomes (PO), with operational efficiency (OE) and managerial decision-making (MDM) acting as mediating variables. A quantitative research approach was adopted, and data were collected from 216 professionals working in Saudi Arabia’s private construction sector. The data were analyzed using Partial Least Squares Structural Equation Modeling (PLS-SEM). The findings supported all proposed hypotheses, demonstrating that AI integration has a significant positive effect on PO. Furthermore, OE and MDM were found to significantly mediate the relationship between AI integration and PO. The structural model explained 65% of the variance in PO, indicating substantial explanatory power. The findings contribute to the growing body of knowledge on AI adoption in construction project management and provide practical insights for organizations seeking to enhance PO through AI-driven digital transformation initiatives in support of Saudi Vision 2030.