The workplace is undergoing a seismic shift: AI is no longer just a tool for automating tasks—it’s making the call on who gets a raise, a promotion, or even a pink slip. A recent ResumeBuilder.com survey of over 1,300 U.S. managers reveals just how deeply artificial intelligence is embedded in people management today.
“It’s essential not to lose the ‘people’ in people management. While AI can support data-driven insights, it lacks context, empathy, and judgment.”
– Stacie Haller, Chief Career Advisor, ResumeBuilder.com
6 in 10 managers now use AI to make decisions about their direct reports.
Of those, 78% use AI to decide raises, 77% for promotions, 66% for layoffs, and 64% for terminations.
Nearly 1 in 5 managers frequently let AI make final decisions without human input.
The most popular AI tools? ChatGPT (53%), followed by Microsoft Copilot (29%) and Google Gemini (16%). These platforms aren’t just drafting emails—they’re shaping careers and livelihoods.
Beyond the headline-grabbing decisions, managers are leveraging AI for:
Creating training materials (97%).
Building employee development plans (94%).
Assessing performance (91%).
Drafting performance improvement plans (88%).
But the real shocker: Almost half of AI-using managers say they use these tools often or all the time for compensation and employment decisions.
Despite AI’s growing role, two-thirds of managers using AI to manage people haven’t received any formal training. Only 32% report formal instruction on the ethical use of AI in people management, while 24% have received no training at all.
This lack of training raises red flags about fairness, bias, and legal risk. As Haller warns, “AI outcomes reflect the data it’s given, which can be flawed or biased. Organizations have a responsibility to implement AI ethically to avoid legal liability, protect their culture, and maintain trust among employees”.
Nearly half of managers (46%) have been tasked with evaluating whether AI could replace a position. Of those, 57% determined it could, and 43% actually replaced a human with AI.
| Task Managers Use AI For | % of Managers Using AI | Impact / Interpretation |
|---|---|---|
| Raises | 78% | High influence on compensation decisions; strong need for transparency and bias checks. |
| Promotions | 77% | Critical career decisions increasingly AI-shaped; requires clear human oversight. |
| Layoffs | 66% | AI is materially affecting job security; raises ethical and legal risk. |
| Terminations | 64% | Direct role in firing decisions; governance and auditability are essential. |
| Creating Training Materials | 97% | AI is nearly ubiquitous for content generation; efficiency gains but quality control needed. |
| Performance Assessment | 91% | Core to how employees are evaluated; risks embedding systemic bias at scale. |
AI is now a gatekeeper for career advancement—and career endings—across many organizations. While the technology promises efficiency and data-driven insights, the lack of training and oversight raises urgent questions about fairness and the future of work. For companies embracing AI in people management, the message is clear: pair the algorithm with human judgment, and invest in training before letting AI make the call on someone’s career.
Editorial Team
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