ChatGPT Is Doing Performance Reviews and Deciding Layoffs Now

Generative AI apps on a phone screen

According to a recent Resume Builder survey that tapped 1,342 US managers with direct reports to find out how many of them are using AI to determine who gets promoted and fired, 6 in 10 of these managers “rely on” AI to make decisions about their underlings.

The key findings before we get deep into the muck:

  • A majority of these managers use AI to determine raises (78%), promotions (77%), layoffs (66%), and even terminations (64%)
  • More than 1 in 5 frequently let AI make final decisions without human input
  • Two-thirds of managers using AI to manage employees haven’t received any formal AI training
  • Nearly half of managers were tasked with assessing if AI can replace their reports

Of the 65% of respondents who use AI tools at work, 94% are using them to determine what to do with their underlings. What exactly are these managers using AI to do when it comes to personnel?

  • 97% use it to create training materials
  • 94% to build employee development plans
  • 91% to assess performance
  • 88% to draft performance improvement plans (PIPs)
  • 78% to determine raises
  • 77% to determine promotions
  • 66% to determine layoffs
  • 64% to determine terminations

The numbers look quite different when you pull back from only the managers using these tools but you see assessing performance and creating PIPs are quite popular as people management tasks being offloaded to AI all the time or often.

As for the tools themselves, ChatGPT is getting the most use as robot HR with 53% of the managers using it to perform the tasks listed above. Coming in second is Copilot with 29% and bringing up the rear is Gemini with 16%.

Here’s the part we should be worried about (unless you’re someone who thinks machines are better than humans at decisions like these as they’re not so bogged down with emotions and petty office politics):

Among managers who use AI to help manage their teams, a majority (71%) express confidence in AI’s ability to make fair and unbiased decisions about employees.

A notable share of managers let AI operate with limited oversight. More than 20% say they allow AI to make decisions without human input either all the time (5%) or often (16%), while another 24% sometimes do. However, nearly all managers say they are willing to step in if they disagree with an AI-driven recommendation.

And this part:

Only one-third (32%) of managers using AI to manage people say they’ve received formal training on ethically using AI in managing people, while 43% have received informal guidance. Nearly one in four (24%) say they’ve received no training at all.

“It’s essential not to lose the ‘people’ in people management,” said Stacie Haller, chief career advisor at Resume Builder, of the survey results. “While AI can support data-driven insights, it lacks context, empathy, and judgment. AI outcomes reflect the data it’s given, which can be flawed, biased, or manipulated. Organizations have a responsibility to implement AI ethically to avoid legal liability, protect their culture, and maintain trust among employees.”

“Organizations must provide proper training and clear guidelines around AI, or they risk unfair decisions and erosion of employee trust,” she said.

One thought on “ChatGPT Is Doing Performance Reviews and Deciding Layoffs Now

  1. This is a great fat-trimming tool for those who can’t stomach giving someone a pink slip. We would not be in this mess if the DEI idiots didn’t force everyone to hire inept candidates.

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