Managers are using AI to assess raises, promotions, even layoffs: New study

A new study by Resume Builder found that 65% of managers use AI at work, and 94% of them rely on AI to make decisions about their direct reports, including promotions, raises, layoffs, and firings. This raises concerns about potential discrimination and lawsuits, as AI-based decision-making can be prone to bias and hallucinations. Despite the risks, many managers are confident in AI's fairness and unbiasedness, with 20% even allowing AI to make decisions without human input. However, only one-third of these managers have received formal training on AI tools, and experts warn that using AI to assess people's careers is risky. The study also found that over half of managers using AI for personnel decisions use ChatGPT, while others use Microsoft's Copilot or Google's Gemini. Managers are looking for new ways to implement AI, possibly due to pressure from their organizations. Experts argue that AI can be useful in synthesizing employee feedback and highlighting patterns, but the quality of the data input is crucial, and AI can replicate existing biases in the system. The study's findings raise a "huge red flag" about the potential consequences of relying on AI for high-stakes decisions.