How employees perceive the climate for trust and fairness of practices in an organization is a critical factor that drives employee satisfaction and engagement and contributes to sustained performance and growth. Communication between employees and top leadership is an essential mechanism that bridges the differences and helps align employees towards organizational goals. Technological innovations, such as artificial intelligence (AI)-based virtual assistants, can help leaders provide personalized interactions. Though scholars have argued the importance of AI, they have conducted relatively little work to explain its relevance in managing human resources. This study draws on social exchange theory and social response theory to investigate virtual assistants’ impact on positive organizational outcomes. Based on a time-lagged, rigorous field study, we investigated virtual assistants’ impact on creating a climate for trust, fairness, and employee outcomes, namely, their engagement and satisfaction. We also discuss the impact and implications of AI- based virtual assistants for enhancing employee outcomes.