Artificial intelligence is increasingly being used to make personnel decisions—from promotions and rewards to employee terminations. According to a recent study by Resume Builder, most managers in the U.S. already trust AI to evaluate their staff. But as interest in generative technologies grows, so do concerns: experts warn that using AI in workforce management can lead to distorted perceptions, flawed decisions, and ultimately, legal action.
The rapid integration of AI into day-to-day work has become part of a broader trend. Proficiency in generative AI tools is now directly linked to career advancement and higher pay. Yet companies are slow to introduce clear guidelines or training programs: the technology is evolving so quickly that even specialists struggle to keep up.
The study surveyed 1,342 full-time managers in the United States. Of those, 65% reported using AI in their daily work. Among them, nearly all—94%—said they rely on AI tools to make decisions about their direct reports. More than half admitted using AI to determine who to promote, who should receive a raise, and who should be let go.
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The most commonly used tool was ChatGPT, though managers also cited Microsoft Copilot, Google Gemini, and other AI systems. Notably, around 20% of managers said they allow AI to make decisions entirely autonomously, without human input. Two-thirds of respondents acknowledged receiving no formal training in using these tools—yet most still believe that AI operates "fairly and impartially."
Stacey Haller, chief career advisor at Resume Builder, believes companies are rushing to adopt new tools without considering the consequences. "It seems like everyone is just testing how it works. But to me, that’s a huge red flag when someone’s career is on the line. If someone is fired based on an AI recommendation, lawsuits are bound to follow. People were suing for wrongful termination long before AI came into the picture."
According to her, the push to incorporate AI into such decisions often comes from the top down: companies are seeking to boost efficiency by cutting costs and speeding up processes. But it remains unclear how managers are actually using AI. It might serve as a support tool for organizing information and preparing performance reviews. Yet there’s nothing stopping someone from asking the system outright: "Who should I fire next?"
Linda Gratton, a professor at London Business School, acknowledges that AI can help detect recurring patterns in employee feedback and synthesize performance data across teams. However, she warns that data quality is a major concern. Even when the information is accurate, the algorithm can still replicate systemic bias: "If an organization is already biased, AI will simply reinforce it."
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