Organizations strive to innovate with Artificial Intelligence (AI) to tap new value potentials and outperform their competition. However, despite the enormous expectations associated with AI, incorporating the latter induces novel uncertainties and can even result in business value destruction. Therefore, organizations innovating with AI must manage these AI-induced uncertainties in their sensemaking process. Drawing on an exploratory case study, we investigate organizational sensemaking in two AI-based digital innovation projects at a globally leading automotive manufacturer. We account for the properties by which AI differs from traditional information systems and carve out how distinct AI properties unfold in AI-based digital innovations. We deduce four AI sensemaking mechanisms (i.e., cognition, interaction, regulation, and concretization) to understand better how AI challenges digital innovation endeavors in organizations.