Artificial Intelligence at Work: Balancing Engagement and Health Harms in the Digital Workplace

This research examines the dual influence of artificial intelligence (AI) on employee outcomes, specifically its impact on work engagement and health detriment in the context of Indonesian workplaces. This study aims to investigate the dual role of AI as a motivational resource and a source of strain, and its subsequent impact on employee well-being and engagement. A quantitative design was utilized to collect data from 150 office workers in Greater Jakarta through purposive sampling. The data were analyzed using structural equation modeling (SmartPLS 3.2.9) to examine the direct and mediating relationships among AI utilization, health harm, and engagement. The findings indicate that AI enhances engagement through skill development and the reduction of repetitive tasks; however, it also contributes to health issues such as stress, fatigue, and work-life imbalance, which adversely impact engagement. This study uniquely contributes by empirically validating the simultaneous presence of resource-enhancing and strain-inducing pathways of AI adoption in an emerging economy, thereby extending dual-pathway models of organizational behavior. The findings hold significant implications for managers and policymakers, highlighting the necessity for balanced AI strategies that optimize productivity while protecting employee well-being to facilitate sustainable digital transformation.