Beyond Automation: Sensemaking, Ontological Insecurity, and the Emergence of the AI-Form Organisation in the Digital Era

The integration of generative and agentic artificial intelligence (AI) represents a profound technological disruption to contemporary organisational life. While previous literature has largely focused on productivity gains and task automation, this qualitative and theoretical paper examines the sociotechnical and psychological implications of AI integration on knowledge workers and organisational structures. Drawing on Weick's sensemaking theory and phenomenological perspectives on professional identity, this study explores how autonomous AI agents precipitate ontological insecurity among white-collar professionals and catalyse the emergence of the "AI-Form" organisation, wherein algorithmic coordination displaces middle management. Through a critical synthesis of empirical literature and qualitative case studies (2024-2026), the findings suggest that successful digital transformation requires organisations to manage identity threats, foster psychological safety, and implement human-in-the-loop governance. Practical recommendations are offered for resolving the automation-augmentation paradox and driving sustainable business model innovation.