Managerial sensegiving during AI adoption in professional service firms

Abstract

The introduction of artificial intelligence (AI) in organisations is not just a technological innovation, but also has a broad impact on decision-making, management practices, and the organisation of work, as well as the process of making decisions. AI also challenges professional service firms, as it can change how value is created and captured. Previous research into the adoption of AI has focused on technological and organisational aspects. However, less attention has been paid to how managers can influence their employees' understanding of AI and its adoption.

The objective of this study is to deepen our understanding of how managers perceive the adoption of AI, how they lead this change, and how they influence their employees' interpretation of this change. The research questions focus on how managers make sense of the adoption of AI in their organisation and how they use sensegiving to promote the adoption of the new technology among employees. The theoretical framework of the study is built on the analysis of leadership as a process of creating and sharing meaning and on the literature on the adoption of AI in organisations. The creation and sharing of meaning in this study is based on the concepts of sensemaking and sensegiving. Sensemaking refers to the process by which leaders create understanding of new technology for themselves, while sensegiving describes how they communicate this understanding and influence employees' interpretations of change.

The study was conducted as a qualitative case study within a Nordic professional service firm in the legal sector that was already applying generative AI solutions. The data was gathered through eight semi-structured thematic interviews with organisational managers who led the work of professionals in teams and projects. The interviews were analysed using a data-driven content analysis approach based on the Gioia methodology, which provided a systematic way of identifying key themes in the managers' sensegiving processes.

As a result of the analysis, three main themes were identified that describe how managers lead the adoption of AI and their role in providing meaning in this context. The first relates to the leader's visionary role in driving the adoption. The second relates to their role in creating practical conditions. The third relates to their role in building human support and fostering a climate of safety. The analysis also revealed how managers themselves make sense of AI adoption and its importance for the organisation.

The results show that managers construct meaning in AI adoption not only at the strategic and organisational levels, but also at the level of individual experience. Leaders' sensegiving activities include making AI visible, structuring team roles, and fostering a culture that supports experimentation and innovation. The study highlights that sensegiving is not just a top-down process, but a continuous, interactive effort in which leaders' attitudes and behaviour influence employees' attitudes.

The research suggests that successful AI adoption in a professional service firm requires leadership that aligns the technological change with the values, identity, and experiences of the organisation. It concludes that AI adoption requires managers to stay abreast of developments and to lead in a communicative and human way. The thesis highlights the key role of managers in the success of AI deployment, where managers act as creators of meaning and agents of change, building understanding, trust, and positive attitudes towards new technology through their own actions. The study complements previous research on technological change processes from a more human and experiential perspective. The results also provide practical guidelines for managers leading AI-related changes in professional organisations.