The rapid use of artificial intelligence in organizational activities has encouraged companies to strengthen employee digital competence and work engagement as key drivers of performance. This study aims to analyze the effect of artificial intelligence adoption and digital competence on employee performance through work engagement. The study uses a quantitative explanatory approach with a survey design. The research model positions artificial intelligence adoption and digital competence as independent variables, work engagement as an intervening variable, and employee performance as the dependent variable. Data were analyzed using Structural Equation Modeling based on Partial Least Squares with validity, reliability, coefficient of determination, predictive relevance, and hypothesis testing. The model testing results indicate that artificial intelligence adoption and digital competence have positive effects on work engagement and employee performance. Work engagement also strengthens the relationship between digital capability and employee performance. These findings imply that companies should not only invest in AI-based systems, but also provide structured digital learning, ethical AI guidelines, and engagement-oriented leadership. The study contributes to human resource management literature by integrating technology adoption, digital competence, work engagement, and employee performance in one empirical model.
Copyrights © 2026