Chapter 10: AI in Action: Decoding the Employee Experience Connection to Boost Engagement

Change brings about uncertainty, apprehension, nervousness, and optimism. The recent introduction of artificial intelligence (AI) to the workspace has brought about tremendous change in the workplace, affecting employee experience (EEX) and, hence, their engagement at a professional level. The Banking Industry is no exception to this phenomenon. This chapter attempts to identify and explore the effects of AI on the engagement level of employees through a recently researched construct of “Employee experience” in the banking sector of the Delhi-NCR region of India. This phenomenon in the banking sector is studied by administering an adapted structured questionnaire to 530 public and private sector bank employees using Partial Least Squares Structural Equation Modeling (PLS-SEM). SMART-PLS V4.1 is employed to run the tests and for analysis purposes. Results reveal a strong association between AI and Employee Engagement (EE), partially mediated by EEX, in the banking sector. The chapter taps into the intricate behavior of AI at the workplace, influencing the comprehensive nature of the construct of the EEX, and EE. Understanding this compound relation would help the banking sector plan HR functions strategically to realize maximum results.