Exploring the Impact of AI-Based HR Systems on Generation Z Employee Engagement in Indonesia

The integration of Artificial Intelligence (AI) in Human Resource (HR) management is transforming organizational dynamics, particularly in the context of employee engagement. Despite the growing implementation of AI-based HR systems, limited research has explored their influence on Generation Z employees, particularly in Indonesia. This study aims to investigate the impact of AI-driven HR systems on employee engagement within Generation Z in Indonesian organizations. Utilizing a quantitative research design, data was collected from 150 Generation Z employees working in organizations that have integrated AI-based HR systems. A structured survey was employed to gather insights into employee engagement levels and the perceived influence of AI in HR processes. The findings indicate a significant positive relationship between AI-driven HR systems and higher levels of employee engagement, suggesting that the automation of HR procedures enhances employee satisfaction and commitment. Furthermore, the study highlights the importance of ethical leadership in implementing AI technologies to foster a supportive and inclusive organizational culture. The results emphasize the need for companies to adopt AI solutions that not only improve operational efficiency but also contribute to employee well-being and organizational sustainability. This research contributes to the literature by providing empirical evidence on the role of AI in enhancing employee engagement among Generation Z in Indonesia, offering valuable implications for HR practices and digital transformation strategies in organizations.