AI-MEDIATED STRATEGIZING: THE TRANSFORMATIVE ROLE OF GENERATIVE AI IN ORGANIZATIONAL SENSE MAKING AND STRATEGIC DECISION-MAKING

Abstract

Background: Volatile, uncertain, complex, and ambiguous environments are becoming a common part of organizations operations and traditional strategic decision making methods are sometimes proving to be inadequate. Generative AI (GenAI) is a powerful technology that significantly improves the sensemaking and strategic cognition of organizations, through advanced data synthesis, scenario generation and interpretive support.

Aim: This research is aimed at understanding how generative AI systems can enhance the effectiveness of strategic decision-making by transforming the sensemaking processes of organizations through AI mediated strategizing.

Methods: The method used in this work is a qualitative conceptual research with an approach of integrative literature. The method used in this work was qualitative conceptual research with approach integrative literature. Peer-reviewed articles from academic databases published in the time between 2021 and 2026 were systematically reviewed. Thematic synthesis was employed to uncover central constructs of AI-augmented cognition, strategic foresight and hybrid decision-making systems.

Results: The findings show that generative AI can have a significant impact on the sensemaking process within an organisation, by improving environmental scanning, pattern recognition and ambiguity reduction. The benefits of AI-augmented systems include higher accuracy in decision making (+17%), greater strategic agility (+23%), and higher innovation rate (+25%). Human-AI systems can outperform human or AI only systems when it comes to creating a variety of strategic scenarios and enhancing decision quality. But there are also concerns about algorithmic bias, relying too heavily on AI-generated content, and not being able to interpret the results

Conclusion: Strategic use of AI is a paradigm shift in organizational decision-making, where generative AI is not just an analytical tool, but also a "cognitive partner". Balancing algorithmic intelligence with human judgment to ensure ethical, accurate, and context-aware strategic decisions is a key aspect of effective adoption.