AI-based technologies have changed the nature of the symbiosis between humans and AI, and so strategic management of human-AI interaction in organizations requires deeper ethical considerations. Aligning AI with human values requires a systematic understanding of the ethical management of human-AI interaction. We conduct a theoretical review, from a sociotechnical perspective, and analyze ethical management of human-AI interaction through the lens of sociomateriality. Our systematic approach helps explain and clarify the interdependencies between two ethical perspectives – duty and virtue ethics – in sociotechnical systems. We also provide a theoretical framework that leads to seven avenues for future research.