This study aims to explore employee perceptions in a telecommunications company regarding the role of change leadership in the implementation of artificial intelligence (AI), which will impact employee productivity and engagement in conditions experiencing rapid change. This research adopts a quantitative approach, and data analysis is conducted using structural equation modeling (SEM), supported by LISREL software version 8.8. A total of 377 respondents participated in this study. The respondents were employees of Telkomsel from various regions across Indonesia. The research findings indicate that AI has a significantly greater positive impact on employee productivity and engagement when mediated, compared to the direct relationship between AI and employee productivity. The impact of AI on employee productivity and engagement is moderated favorably by positive change leadership, even though the contribution is somewhat modest. These discoveries will offer assistance pioneers make a positive work environment through the usage of AI, driving to higher efficiency and worker engagement. Particularly, the discoveries help companies in coordination AI more successfully and give pioneers with a comprehensive understanding of the contemplations required to upgrade efficiency through representative engagement for organizational competitiveness.