A recent survey has revealed a major shift in how U.S. companies are making key decisions about their workforce. Nearly two-thirds of full-time managers now use artificial intelligence (AI) in their day-to-day roles, and many are relying on it to determine which employees get raises, promotions, or even let go.

Conducted in early July 2025, the study included 1,342 full-time U.S. managers. Among those already using AI, a striking 94 percent apply it to evaluate their direct reports.

This includes decisions on raises (78 percent), promotions (77 percent), layoffs (66 percent), and terminations (64 percent). The trend suggests AI is no longer just a support tool, but a key component in personnel management.

AI in Human Resources – Beyond basic automation

The study also found that managers are using AI for more than just final decisions. AI is widely used to assist with:

• Creating employee training materials
• Building development plans
• Drafting performance improvement plans
• Assessing employee performance
• Popular tools among managers include ChatGPT, Microsoft Copilot, and Google Gemini, with ChatGPT leading the adoption.

However, concerns are growing. While most managers claim they review AI-generated recommendations before making final decisions, 21 percent said they often or always allow AI to make decisions without human input.

This has raised red flags, particularly since many managers have not received formal training in using these systems. Only 32 percent reported receiving structured AI training, while 24 percent said they received no training at all.

Lack of oversight raises ethical and legal questions

The increasing use of AI in performance-related decisions has drawn criticism from employment experts. One major concern is the lack of human judgment and empathy, especially in sensitive cases such as layoffs or firings.

Experts also warn that poorly trained use of AI could expose companies to discrimination claims or other legal risks. Adding to this concern, 48 percent of surveyed managers said they had been asked to evaluate whether AI could replace a member of their team.

Over half of them concluded that replacement was possible, and 43 percent actually followed through with letting an employee go. While AI offers clear efficiency benefits, the growing reliance on it for human-centric decisions raises important questions about fairness, accountability, and transparency.

Would you be comfortable knowing that a machine could help decide your future at work? As more companies adopt AI-driven management, there is an urgent need for clearer policies, better training, and ethical oversight.

Stay tuned to TechNave.com for more updates.