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Abstract

This study aims to analyze the effects of Human Resource Digital Transformation and Artificial Intelligence utilization on employee performance with Employee Engagement as a mediating variable. The study is motivated by the increasing implementation of digital transformation and Artificial Intelligence in human resource management, as well as the importance of employee involvement in supporting successful technology implementation. This research employed a quantitative approach with an explanatory research design. Data were collected through questionnaires and analyzed using Structural Equation Modeling–Partial Least Squares (SEM-PLS) with the assistance of SmartPLS. The sample consisted of 40 respondents. The variables examined in this study were Human Resource Digital Transformation, Artificial Intelligence Utilization, Employee Engagement, and Employee Performance. The results indicate that Employee Engagement has a positive and significant effect on Employee Performance. Artificial Intelligence Utilization has a positive and significant effect on Employee Engagement. However, Human Resource Digital Transformation does not have a significant effect on either Employee Performance or Employee Engagement. Artificial Intelligence Utilization also does not have a significant direct effect on Employee Performance. Furthermore, Employee Engagement does not significantly mediate the effects of Human Resource Digital Transformation or Artificial Intelligence Utilization on Employee Performance. These findings indicate that employee engagement is an important factor in improving employee performance, while the implementation of digital technology and Artificial Intelligence needs to be accompanied by a human-centered organizational approach.

Keywords: Human Resource Digital Transformation, Artificial Intelligence, Employee Engagement, Employee Performance