Gayathiri G.

Type of the article: Research article

Abstract
Artificial intelligence can be strategically integrated into human resource management to enhance employee well-being in the information technology (IT) industry. The paper deals with a quantitative approach using structural equation modeling (SEM) to examine the relationships between AI-enabled HR practices, employee engagement, and well-being. Data were collected through an online survey conducted between October 2024 and February 2025, employing a stratified random sampling method to select IT professionals across various roles and levels from leading IT companies in Chennai, India, a major hub for technology-driven enterprises. A standardized questionnaire was administered to collect data from 323 IT employees. The results indicate that AI-enabled training and development, performance appraisal, compensation, and reduced workload significantly and positively impact employee engagement (β = 0.560, 0.351, 0.366, 0.292; p = 0.000, 0.001, 0.000, 0.000), which in turn has a significant effect on employee well-being (β = 0.451; p = 0.001). Moreover, these HR practices directly enhance employee well-being (β = 0.253, 0.258, 0.330, 0.241; p = 0.000). Employee engagement was found to significantly mediate the relationship between AI-enabled HR practices and well-being (β = 0.194, 0.149, 0.121, 0.132; p = 0.000, 0.003, 0.000, 0.000), while technology readiness positively moderates the relationship between AI practices and engagement (β = 0.252, 0.158, 0.165, 0.212; p = 0.002, 0.000). These findings demonstrate AI’s positive impact on employee well-being and provide practical guidance for HR professionals in Chennai’s IT sector to effectively leverage AI technologies for a healthier, more engaged, and productive workforce.

Type of the article: Research Article

In the era of digital transformation, organizations are increasingly integrating digitalization and artificial intelligence to enhance employee behavior and organizational outcomes. This study examines the associations among digital leadership, AI-based performance assessment, employee empowerment, work engagement, and organizational performance in a Chennai-based IT company in India. Specifically, the study investigates the direct and indirect effects of digital leadership and AI performance assessment on organizational performance through employee empowerment and work engagement. Data were collected from 373 IT employees using an online survey conducted between June and August 2025 and analyzed using partial least squares structural equation modelling (PLS-SEM). A stratified random sampling technique based on organizational job levels (entry, mid, and senior) was adopted to ensure adequate representation of hierarchical positions within the organization. Hypothesis testing revealed that digital leadership and AI performance assessment significantly enhance employee empowerment and work engagement (β = 0.490, 0.415, 0.527; p < 0.001), which in turn positively influence organizational performance (β = 0.383, 0.477, 0.195, 0.287; p < 0.001, 0.033). Furthermore, employee empowerment and work engagement significantly mediate the relationships between digital leadership, AI performance assessment, and organizational performance (β = 0.135, 0.199, 0.265, 0.244; p < 0.001). In addition, a multi-group analysis was conducted to examine differences across employee hierarchical levels. The findings highlight that transformations in modern workplaces and digitalized HR practices contribute to organizational performance across the workforce, while ensuring that employees from different hierarchical levels are adequately represented in the sample.