Building on Coase’s theory of the firm, this chapter analyzes how enterprise social media, enhanced by Artificial intelligence(AI), reduces transaction costsTransaction costs and breaks down internal silos. It examines how AI-powered tools, such as intelligent Q&A platforms, can surface hidden expertise, automate knowledge routing, and facilitate more efficient internal communication. The chapter also critiques the bureaucratic structures that impede knowledge flow and explores how AI can shift traditional power dynamics by enabling upward communication and broader participation. By examining how algorithmic systems influence who contributes and who is heard, it raises critical questions about the democratization of organizational knowledge. Ultimately, it proposes ways that AI-driven digital tools can unlock buried expertise, making organizations not only more efficient but also more adaptive.