Artificial Intelligence (AI) is changing Human Resource (HR) practices in many organizations. Employee engagement is not an exception. AI is being used in various ways in organizations. For instance, predictive analysis, sentiment analysis, virtual assistants, and personalized learning platforms help organizations to gain valuable insights into their employees. This is changing the way organizations design their employee engagement strategies. However, there are many challenges associated with the adoption of AI in organizations. For example, organizations face challenges in terms of data privacy. This is changing the way organizations view the adoption of AI in their Human Resource functions. This research is based on the quantitative research approach. It is conducted by using a structured questionnaire among employees in organizations that use AI in their Human Resource functions. Data is collected by using a questionnaire that measures perceptions of AI adoption in organizations, ethical use of AI in organizations, employee engagement in organizations, and organizational performance. Data is analysed by using statistical methods. It is used to examine the relationship between AI adoption in HR functions in organizations and employee engagement. This paper examines both the opportunities and challenges associated with the adoption of AI in organizations. It is concluded that AI is used in organizations as an enabler in terms of organizational culture.