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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
AI’s Expanding Influence on High-Stakes Decisions
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.
How Managers Are Using AI
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.
The Training Gap: Are Managers Ready?
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”.
Can AI Replace Human Workers?
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.
