The whole world is rushing towards Artificial Intelligence; it has revamped every dimension of our lives. Now, various companies are utilizing AI to improve employee well-being. This chapter is an attempt to understand the role of AI in enhancing employee well-being at the workplace. It examines AI-driven solutions for monitoring employee engagement, stress levels, and overall job satisfaction. AI-powered tools, such as mental health chatbots, predictive burnout models, and personalized wellness programs, contribute significantly to workplace efficiency and employee retention. However, the integration of AI into well-being initiatives also raises ethical concerns regarding data privacy, algorithmic bias, and employee trust. This study emphasizes the need for a human-centered approach that balances AI automation with personal interaction. By ensuring transparency, regulatory compliance, and ethical implementation, organizations can successfully leverage AI to foster a healthier, more engaged, and productive workforce.