ARTIFICIAL INTELLIGENCE FOR EMRLOYEE ENGAGEMENT AND RRODUCTIVITY

Abstract

The “new normal” era has made remote work the new standard, making the use of artificial intelligence (AI) increasingly important. Therefore, this study aims to investigate employee perceptions of change leadership in the application of AI that affects employee engagement and productivity according to the resource-based view (RBV). Of the 467 respondents who worked in the banking industry in West Sumatra province, Indonesia, only 359 met the eligibility requirements. The partial least squares (PLS) analysis shows a direct relationship between AI and employee engagement (p < 0.05) and productivity (p < 0.05), as well as employee engagement and employee productivity (p < 0.05). The effect of AI on employee productivity is mediated by employee engagement (p < 0.05), but the moderating effect provided by change leadership is not significant (p > 0.05) in increasing employee productivity. These findings will help managers create a positive work environment through the application of AI, resulting in higher employee engagement and productivity. Specifically, these findings help organizations integrate AI more effectively and provide managers with a comprehensive understanding of the considerations needed to increase productivity through employee engagement for organizational competitiveness.