This study explores the transformative impact of artificial intelligence-based human resources automation on business transformation and employee engagement within the banking sector. Leveraging the Job Demands-Resources model, this research investigates the complex relationships between technology integration in human resources practices, its role in driving strategic business changes, and the consequent effects on employee satisfaction and engagement. Employing Structural Equation Modeling to analyze data from bank employees, the findings reveal a dual role of artificial intelligence in human resources automation: it directly enhances employee engagement and mediates business transformation processes that, in turn, further elevate employee engagement levels. These insights extend the theoretical framework of the Job Demands-Resources model to include the intricacies introduced by digital technologies in human resources functions, highlighting the central role of artificial intelligence in contemporary human resources practices. This study contributes to the academic discourse on digital transformation in human resources, offering evidence-based recommendations for the strategic application of artificial intelligence to synergize operational efficiency and employee engagement in the era of digital transformation.