Adoption of AI-Powered HR Tools for Employee Engagement and Retention: Insights from Chennai

This study examines how AI-powered human resource solutions help improve employee engagement and retention in organizations across Chennai, India. With high attrition in the IT and service sectors, companies are turning to Artificial Intelligence (AI) to manage recruitment, performance, engagement, and retention more effectively. The research aimed to study the impact of AI on HR practices, the role of AI in creating sustainable HR functions, and the current trends of AI adoption in Chennai. Data were collected from 83 HR professionals working in IT, ITES, service, and manufacturing companies through a structured questionnaire. The responses were analyzed using SPSS and AMOS to test reliability and validity. Results show that AI has greatly improved recruitment, performance management, and employee retention. However, its use in employee engagement is still developing. The study concludes that adopting AI responsibly can help organizations in Chennai reduce attrition, improve job satisfaction, and build a more sustainable workforce.