This study investigates how artificial intelligence (AI) impacts employees' engagement (EE) in lean organisations. The research explores the relationship between AI and EE, focusing on how this relationship affects employees' psychological conditions, such as safety, meaningfulness, and availability. The study uses a qualitative-empirical approach, including interviews with twelve academic experts and a multi-case study in manufacturing organisations undergoing lean production (LP) implementation. The findings suggest that AI can positively impact EE dimensions (physical, cognitive, and emotional) in lean organisations, although not uniformly. The relationship between AI and EE is positively associated with employees' psychological conditions, particularly safety, meaningfulness, and availability. The study also highlights the importance of understanding AI's impact on EE to ensure successful LP implementation in the context of Industry 4.0. The research contributes to the understanding of how AI can influence EE in lean organisations and provides propositions for future theory testing and validation. The study underscores the need for organisations to adapt to AI integration while maintaining the principles of lean production. The findings suggest that AI can enhance EE by reducing physical and mental efforts, improving communication and knowledge sharing, and fostering a safer and more meaningful work environment. However, the study also acknowledges the potential challenges of AI implementation, such as the capability gap and job downsizing, which could negatively affect EE. Overall, the study provides insights into the relationship between AI and EE in lean organisations, highlighting the importance of considering both the benefits and challenges of AI integration.This study investigates how artificial intelligence (AI) impacts employees' engagement (EE) in lean organisations. The research explores the relationship between AI and EE, focusing on how this relationship affects employees' psychological conditions, such as safety, meaningfulness, and availability. The study uses a qualitative-empirical approach, including interviews with twelve academic experts and a multi-case study in manufacturing organisations undergoing lean production (LP) implementation. The findings suggest that AI can positively impact EE dimensions (physical, cognitive, and emotional) in lean organisations, although not uniformly. The relationship between AI and EE is positively associated with employees' psychological conditions, particularly safety, meaningfulness, and availability. The study also highlights the importance of understanding AI's impact on EE to ensure successful LP implementation in the context of Industry 4.0. The research contributes to the understanding of how AI can influence EE in lean organisations and provides propositions for future theory testing and validation. The study underscores the need for organisations to adapt to AI integration while maintaining the principles of lean production. The findings suggest that AI can enhance EE by reducing physical and mental efforts, improving communication and knowledge sharing, and fostering a safer and more meaningful work environment. However, the study also acknowledges the potential challenges of AI implementation, such as the capability gap and job downsizing, which could negatively affect EE. Overall, the study provides insights into the relationship between AI and EE in lean organisations, highlighting the importance of considering both the benefits and challenges of AI integration.