HOW MANAGERS MAKE SENSE OF AI INTEGRATION: A SENSEMAKING STUDY OF ORGANIZATIONAL TRANSITION

Abstract

This qualitative study examines how managers construct meaning and navigate organizational transitions during artificial intelligence (AI) integration processes. Drawing on Weick's (1995) sensemaking theory, this research explores the cognitive and social processes through which 24 middle and senior managers from Malaysian manufacturing and service organizations interpret, understand, and respond to AI implementation challenges. Through semi-structured interviews and thematic analysis, this study reveals that managers engage in retrospective interpretation, social construction of meaning, and identity negotiation as they reconcile technological disruption with established organizational practices. Findings indicate that successful AI integration depends not merely on technical capabilities but on managers' ability to create coherent narratives that bridge past experiences with future technological possibilities. The study identifies four critical sensemaking patterns: technological frame alignment, adaptive identity work, collaborative meaning construction, and strategic ambiguity management. These findings contribute to organizational change literature by illuminating the micro-processes through which managers mediate between technological imperatives and human organizational realities, offering practical implications for managing AI-driven transitions.