This study investigates how artificial intelligence (AI) shapes employees’ workplace experiences. Specifically, it examines the direct effect of AI-driven human resource management (AI-HRM) on employee engagement (EE) and further explores its indirect effect through perceived organizational justice (POJ).
A quantitative, cross-sectional design was employed in this study. Data were collected from banking sector employees who use AI-enabled HRM applications. Using a snowball sampling method, 374 valid responses were obtained. Structural equation modeling (SEM) was conducted to examine the proposed direct and mediating relationships.
The findings reveal that AI-HRM practices have a significant positive impact on EE and POJ. Furthermore, POJ partially mediates the relationship between AI-HRM and job engagement, highlighting the role of justice perceptions in shaping employees’ responses to AI-supported HRM systems.
The results provide actionable insights for senior managers, HR professionals and artificial intelligence system developers in the banking sector. Effective implementation of AI-HRM can enhance employee engagement, promote AI readiness, improve performance outcomes and support continuous skill development.
This study extends social exchange theory, sociotechnical systems theory and organizational justice theory within the context of artificial intelligence. It demonstrates how AI-driven HRM practices influence employee engagement through fairness perceptions, integrates technological systems into social exchange mechanisms and conceptualizes AI-HRM as a sociotechnical structure that shapes employee attitudes and behaviors.
