Employee engagement in the age of AI: A literature-based study on HR practices in MNCS

Abstract

Artificial Intelligence (AI) is transforming Human Resource Management (HRM) across various functions, including recruitment, performance evaluation, and employee development. This transformation, while offering efficiency and data-driven insights, brings significant ethical, psychological, and engagement-related challenges. Using a literature-based methodology, this paper reviews ten real and recent academic works on AI in HRM. The review synthesizes themes around responsible AI, employee well-being, AI-driven HR practices, and engagement, to propose a conceptual understanding of how MNCs (especially in technology-intensive regions) can align AI adoption with employee engagement goals. The paper concludes with practical implications and future research directions.