Generative AI and Organizational Sensemaking: Why Increased Intelligence Can Reduce Understanding

This research investigates the paradox of Narrative Entropy™ in AI-augmented organizations. While generative AI increases content volume, it often erodes collective understanding and brand alignment. Through controlled enterprise pilots, this study identifies a 41% reduction in narrative alignment when AI-generated content exceeds a 60% production threshold. The paper introduces Provenance Architecture™—incorporating the MAHI Index™ and The Marketing Agent Decay Model (MAD-M™)—as a systemic framework to restore organizational sensemaking and ensure strategic coherence in AI-mediated environments.