Employee engagement is critical for the sustenance of organizations. Scholars have highlighted that the employer-employee interaction is an essential mechanism that enhances employee engagement. The communicative and interactional features of AI applications in HRM allow for a personalized and individualized approach to employees. The proliferation of AI-based solutions is increasing in various dimensions of HR business processes, leading to enhanced employee experiences and job satisfaction. However, this research domain is exploratory concerning the impact of AI-mediation HRM practices. Based on a multi-source, time-lagged study spanning over ten months in a multinational company, we have investigated the impact of AI-enabled chatbots on employee engagement in the present study. We have also examined climate for trust as the path through which chatbots impact engagement. Moreover, we have analyzed the implications of AI-enabled chatbots on employee outcomes based on their age and past performance. The contributions of the study to theory and practice have also been discussed.