If you thought AI was just helping managers write performance reviews faster, think again. According to a new survey from ResumeBuilder.com, artificial intelligence is already making—or at least heavily influencing—some of the most critical decisions in the workplace: who gets a raise, who gets promoted, and who gets laid off.
Out of 1,342 U.S. managers surveyed, 6 in 10 said they’re using AI tools to manage their direct reports. Among them, a striking majority let AI weigh in on promotions (77%), raises (78%), layoffs (66%), and even terminations (64%). And more than 20% of those managers said they frequently allow AI to make the final call—no human override required.
Who’s Using AI to Run the Show?
While the idea of AI-powered performance reviews may sound efficient, the execution looks far less thoughtful. The survey found that tools like ChatGPT (53%), Microsoft’s Copilot (29%), and Google’s Gemini (16%) are already deeply embedded in workplace decision-making. These platforms are being used not just for coaching or assessments, but regularly for decisions that alter careers and livelihoods.
Perhaps more troubling: most managers using these tools aren’t equipped to do so responsibly. Just one-third have received formal training on ethical AI use in people management, while nearly one-quarter have had no training at all.
“AI lacks context, empathy, and judgment,” warns Stacie Haller, Chief Career Advisor at ResumeBuilder.com. “If you’re feeding biased or incomplete data into these systems, you’re going to get biased or dangerous results.”
That’s more than a philosophical concern—it’s a legal and cultural minefield. Companies that allow algorithmic decision-making without oversight risk discrimination lawsuits, reputational damage, and a toxic work environment.
Can AI Replace You? Managers Say Maybe
In a sign of how normalized AI has become in HR decision-making, 46% of managers say they’ve been asked to evaluate whether AI could replace one of their direct reports. Of those, 57% said yes—it could—and 43% went on to actually replace the role with AI.
This isn’t just automation replacing rote tasks. It’s white-collar, human-centered jobs being evaluated for redundancy by tools not known for nuance or empathy.
That trend fits into a broader industry push toward AI-driven efficiencies—often without much debate over the ethics or long-term impact. Rival HR software vendors, from Workday to SAP SuccessFactors, are racing to integrate AI into their platforms, touting “smart” workforce planning and predictive analytics. But smart doesn’t always mean fair, and automation without accountability is a risky strategy.
Context Is Everything—And AI Doesn’t Have It
The core issue isn’t just that AI is being used; it’s how. Human Resources decisions are nuanced by definition. They require emotional intelligence, institutional knowledge, and an understanding of subtle interpersonal dynamics—things current generative AI can’t reliably replicate.
ResumeBuilder’s findings put a spotlight on a critical gap: AI is infiltrating HR faster than organizations are developing guardrails. Whether companies are motivated by cost savings, speed, or tech FOMO, they may be outsourcing more human judgment than they realize.
If the trend continues unchecked, the result could be not just flawed decisions, but a fundamental erosion of trust between employees and management. And in a labor market where employer reputation matters, that’s a risk few companies can afford.
Join thousands of HR leaders who rely on HRTechEdge for the latest in workforce technology, AI-driven HR solutions, and strategic insights.
