Future of Work
4 min read

AI in the Workplace: Your New Boss Might Be an Algorithm

Artificial intelligence is no longer just a tool for hiring. A new survey reveals that managers are now using AI for critical decisions like promotions, raises, and even firing employees, raising significant concerns about fairness, bias, and legal liability.

AI in the Workplace: Your New Boss Might Be an Algorithm

We've grown accustomed to the idea of artificial intelligence screening our resumes and even conducting initial interviews. But what happens after you get the job? Imagine your next performance review, raise, or even your job security being decided not by a person, but by an algorithm. It sounds like science fiction, but a new reality is unfolding in workplaces across the country.

From Hiring Assistant to Digital Manager

AI's role in the workplace is undergoing a dramatic and rapid evolution. Once confined to streamlining the hiring process, it's now stepping into the complex, nuanced world of employee management. A recent, eye-opening survey from Resume Builder polled over 1,300 managers and found that AI is increasingly the silent partner in major personnel decisions.

The findings are startling. Six in ten managers now lean on AI to help them manage their teams. This isn't just for administrative tasks; it's for career-defining moments:

  • 78% use AI to help determine employee raises.
  • 77% use it for promotion recommendations.
  • 66% rely on it for deciding layoffs.
  • 64% even use AI to assist in terminations.

The Slippery Slope of Algorithmic Authority

While proponents argue AI offers unbiased, data-driven efficiency, experts are sounding the alarm. "It’s one thing if you are using it for some sort of transactional thing in your job, but now we’re talking about peoples’ livelihoods and their jobs," warns Stacie Haller, Chief Career Coach at Resume Builder. The primary concern is the overreliance on technology for decisions that require human empathy, context, and understanding.

This shift introduces serious risks for companies. An algorithm can't gauge morale, understand a difficult personal situation affecting performance, or recognize untapped potential. "It also leads the organization to have some liabilities if somebody feels they were unfairly fired or didn’t get a raise, and it was AI and the information wasn’t correct," Haller adds.

An Untrained Workforce in a "Wild West"

Perhaps the most concerning revelation from the survey is the lack of preparation. A staggering two-thirds of managers using these powerful AI tools have received no formal training on how to use them responsibly. This creates what Haller calls a "Wild West" environment, where decisions impacting careers are made using tools that aren't fully understood.

The most popular tool of choice? ChatGPT was cited by 53% of managers, with Microsoft’s Copilot (29%) and Google’s Gemini (16%) also being used.

The good news is that the vast majority of managers claim they will override an AI recommendation if they disagree with it. However, the strong trend toward adopting AI for these high-stakes decisions suggests a future where human oversight could become the exception, not the rule.

How to Navigate the New AI-Powered Workplace

So, what can you do? Whether you're an employee or a manager, proactive steps are key.

For Employees:

  • Seek Clarity: Understand the metrics by which your performance is measured, especially if data is being fed into an AI system.
  • Document Everything: Keep a record of your accomplishments, positive feedback, and contributions that an algorithm might miss.
  • Highlight Soft Skills: Emphasize your skills in collaboration, creativity, and problem-solving—areas where humans still outperform AI.

For Managers:

  • Demand Training: Insist on proper training for any AI tools your company implements for personnel management.
  • Use AI as a Co-pilot, Not an Autopilot: Treat AI recommendations as a single data point, not the final word. Always apply your own judgment and context.
  • Maintain Transparency: Be open with your team about how technology is being used to support performance evaluation.

Key Takeaways

  1. AI's Role is Expanding: AI is no longer just for hiring; it's actively used in decisions about promotions, raises, and terminations.
  2. Lack of Training is a Major Risk: Most managers using these tools are untrained, increasing the chance of errors and bias.
  3. Human Oversight is Critical: Relying solely on AI for career decisions is a legal and ethical minefield.
  4. Popular Tools are Leading the Way: Generative AI like ChatGPT is the most common tool being used by managers for these tasks.
  5. Proactive Adaptation is Necessary: Both employees and leaders must adapt to this new reality to ensure fairness and effectiveness.
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