AI in HR: How U.S. Managers Are Transforming Workplace Decisions

A recent study by Resume Builder reveals a significant shift in managerial practices: a substantial number of U.S. managers are now leveraging artificial intelligence (AI) tools to make critical human resources decisions, including promotions, raises, and layoffs. This trend underscores the growing integration of AI into workplace operations, raising both opportunities and concerns.
Key Findings from the Study
The survey, conducted with 1,342 full-time managerial-level employees, highlights several noteworthy statistics:

• Prevalence of AI Usage: 65% of managers reported using AI in their work.
• Dependence on AI for Personnel Decisions: Among those utilizing AI, 94% rely on it to guide decisions about their direct reports.
• Specific HR Actions Influenced by AI:
• 78% use AI to determine raises.
• 77% for promotions.
• 66% for layoffs.
• 64% for terminations.
• Autonomy of AI in Decision-Making: Over 20% of managers allow AI to make final decisions without human input.
• Lack of Formal Training: Despite the reliance on AI, two-thirds of these managers have not received formal training on its ethical use in people management.

Implications and Expert Opinions
The integration of AI into HR processes offers potential benefits, such as increased efficiency and data-driven insights. However, experts caution against over-reliance without proper oversight:

• Legal Risks: The growing dependence on AI in HR could expose companies to legal challenges, including discrimination lawsuits. AI systems may inadvertently perpetuate existing biases present in their training data.
• Ethical Considerations: Stacie Haller, chief career adviser at Resume Builder, emphasizes the importance of ethical implementation:

"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 or biased. Organizations have a responsibility to implement AI ethically to avoid legal liability, protect their culture, and maintain trust among employees."

• Data Quality Concerns: Lynda Gratton, professor of management practice at London Business School, points out potential issues with data quality:

"AI can help synthesize employee feedback or highlight patterns across team assessments. But there could be issues with the quality of the data going into the model. And even if it is accurate, it replicates any bias already in the system."

Broader Context
This trend reflects a broader organizational push to adopt generative AI in workflows. Acquiring AI skills has been associated with higher pay and improved career opportunities. However, the ethical and legal implications of AI-driven HR decisions remain a serious concern.
Conclusion
The integration of AI into human resources management is a double-edged sword. While it offers the promise of efficiency and data-driven decision-making, it also brings forth challenges related to ethics, bias, and legal compliance. Organizations must tread carefully, ensuring that AI tools are implemented responsibly and that human oversight remains a critical component of the decision-making process.

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Source: Axios Managers are using AI to assess raises, promotions, even layoffs: New study