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This study looks at how employees feel about their company's HR policies and workplace culture. It also shows how Artificial Intelligence (AI) can help improve employee engagement and organizational performance. Digital change happens quickly, therefore more and more companies are embracing AI to help with HR responsibilities like hiring, performance reviews, and keeping employees happy. The goal of the study is to look into how employees feel about these practices and how AI might help with engagement and performance outcomes. We got a sample of 114 people by using a structured questionnaire. We looked at the data using tools like frequency analysis and ANOVA. The results suggest that using AI in HR considerably increases employee engagement, and there is a direct correlation between business culture and performance. But how people see things is based on their job and how long they've been doing it. The study reveals that AI is an important aspect of modern HR systems since it makes them perform better, be more open, and be more fun for employees. Businesses should use AI, but people should always come first.