Employee engagement in India has seen a sharp decline, dropping from 24 percent in 2024 to just 19 percent in 2025, according to ADP Research’s “People at Work 2025” report series. This 5 percent dip is the steepest worldwide, signalling a serious organisational challenge. Disengaged employees impact productivity, retention, and workplace culture.
Traditional tools like annual surveys often miss the mark. That’s where AI steps in—offering real-time feedback, deeper insights, and personalised engagement strategies. Many organisations are now turning to AI-powered tools to better understand their workforce and deliver more personalised, data-driven engagement. These tools analyse employee data to uncover actionable insights, enabling targeted interventions and fostering a healthier, more connected workplace.
In this article, we’ll explore how AI is transforming employee engagement in today’s workplace—and take a closer look at companies that have successfully implemented these innovative solutions.
Employee engagement in the age of AI
According to Gallup, employee engagement is all about how connected and motivated people feel at work. It really matters—because when employees are engaged, they tend to be more productive, stick around longer, grow in their roles, and contribute to a healthier, more positive workplace culture.
Let’s investigate how AI is currently changing the dynamics of employee engagement.
Makes smart conversations: AI tools are changing how companies engage with their workforce. Blue Tokai, one of India’s top speciality coffee brands, recently introduced Nikki, an AI-powered chatbot from Umwelt.AI—as its Chief Listening Officer (CLO). Nikki’s role is to boost employee engagement and improve workplace culture by using real-time data and proactive insights to understand employee needs.
Identifies engagement gaps: A smart way to improve employee engagement is to catch signs of disengagement early, before it leads to low performance or people leaving. This is where AI can use predictive analytics to make a real difference. By looking at factors like performance data, attendance patterns, sentiment, communication frequency, and feedback, AI can spot even minor issues that might be affecting someone’s experience at work.
Drives learning and development: AI can also create personalised learning pathways tailored to individual roles and needs. It can recommend relevant courses and content based on skill gaps, job responsibilities, and learning preferences. Furthermore, AI can match employees with mentors who can guide them and offer focused support through interactive lessons or one-on-one coaching.
Enhances communication: HR teams can’t be available around the clock, but that’s where AI chatbots and virtual assistants come in. They help bridge communication gaps by providing instant answers and support, making employees feel more connected and supported at any time. For example, Kotak Mahindra Life Insurance introduced Kavya, an advanced virtual HR assistant powered by generative AI. Kavya helps improve the employee experience by offering confidential support, encouraging open conversations, and staying connected with employees throughout their journey in the company.
The Indian success stories
Let’s look at some leading Indian names harnessing AI to enhance employee engagement and transform workplace experiences:
- One of India’s leading conglomerates, RPG Group, leverages its AI-powered platform Grow@RPG to boost internal talent mobility across its various companies, functions, and locations. Designed to foster skill development and career progression, the platform enables employees to explore diverse gig projects and cross-functional assignments. By making talent more discoverable, the platform also enhances employee visibility across the entire RPG ecosystem.
- Similarly, DBS Bank India has introduced iGrow, an AI/ML-powered platform focused on personalised employee growth and development. iGrow intelligently gathers and analyses employees’ career aspirations to tailor learning journeys based on the 70-20-10 model, offering curated experiences from a library of over 10,000 courses. Since its launch in 2023, the platform has seen an impressive 77 percent adoption rate.
Challenges & considerations
- Like any technology, implementing AI in the workplace entails specific responsibilities, the most important being protecting employee data. Since AI depends on processing personal information, it is crucial to keep employees informed about what data is collected, how it is used, and who has access, while obtaining consent when necessary.
- Equally essential is preserving the human element. Excessive reliance on automation can make employees feel overlooked, particularly in sensitive situations. AI should complement—not substitute—the empathy and understanding that human HR professionals provide.
Conclusion
Traditional HR strategies have long focused on managing employees, but the future of work demands something more. Today’s workforce, especially newer generations, seeks purpose, flexibility, and meaningful connection. Rigid policies and one-size-fits-all approaches no longer resonate. To truly engage this evolving talent pool, organisations must move beyond control and compliance, and instead use technology to foster inclusion, personalise experiences, and build cultures that listen, adapt, and evolve.