The rise of hybrid work models has transformed project management, requiring leaders to balance technological advancements with emotional intelligence (EI) to maintain team cohesion, morale, and productivity. This chapter explores the intersection of artificial intelligence (AI) and EI in project management, focusing on how AI-driven tools can enhance team dynamics, sentiment analysis, and conflict resolution in distributed work environments. While AI can offer valuable insights into employee well-being and collaboration patterns, it cannot fully replace the human touch in leadership. Through case studies and real-world applications, this chapter highlights how project managers can integrate AI-powered analytics with EI-driven decision-making to foster trust, engagement, and high performance in hybrid teams. Additionally, ethical considerations and the future of AI-augmented leadership are explored, offering practical strategies for navigating the evolving role of technology in project environments while preserving human connection and empathy.