Background: Artificial Intelligence (AI) is a prominent topic of conversation in both societal and organizational spheres. This technological revolution signifies a reconfiguration in how we organize, operate, and innovate. AI is seen as a collaborative partner, impacting organizational culture and dynamics. Middle managers are uniquely positioned to influence organizational strategy and drive change. This transition presents challenges for leaders in managing change and aligning organizational capabilities with strategic objectives, requiring a reassessment of leadership approaches and a new set of skills to drive AI transformation effectively. 

Purpose: Although literature on AI transformation is extensive, it remains fragmented and provides limited insights into middle managers' leadership, often overlooked by the focus on top management and front-line roles in literature. This study aims to investigate how middle managers in the manufacturing industry actively lead and navigate changes brought by AI.

Method: This study adopted a qualitative interview-based design framed within a critical realism philosophy and guided by an abductive approach. Data collection involved semi-structured interviews with middle managers from four manufacturing companies in the Jönköping region of Sweden. The analysis employed the Gioia Methodology, enabling a data-centric and theory-informed exploration of emerging themes.  

Conclusion: Our study highlights the critical role of middle managers in AI transformation, revealing four dimensions: (1) Developing Personal Readiness as a Leader, (2) Human Centric Leadership, (3) Leading with an Adaptive Approach to Individual Learning, and (4) Middle Managers as Translators and Cultural Brokers. Middle managers enable AI transformation by acting with agility, translating strategic goals into daily operations, fostering cross-functional collaboration, promoting a culture of continuous learning and experimentation, and ensuring psychological safety for meaningful employee engagement with AI.