Generative AI Is Managing Employees—But Are Managers Trained to Use It?
A growing number of U.S. workplace managers are turning to generative AI tools—such as OpenAI’s ChatGPT, Microsoft Copilot, and Google Gemini—to help make high-stakes personnel decisions, including promotions, raises, terminations, and layoffs, according to a new survey conducted by Resume Builder in late June.
The survey, which included 1,342 U.S.-based managers aged 25 or older with college degrees and employed at organizations with at least 12 staff members, found that 60% now use genAI in employee decision-making. Of those managers, 78% use AI to help determine salary increases, 77% for promotions, 66% for layoffs, and 64% for firing decisions. Alarmingly, more than 20% of respondents admitted they often allow AI to make final calls without human intervention.
AI in the Workplace: Efficiency at the Cost of Empathy?
Resume Builder’s findings highlight a tension between the convenience genAI offers and the risks it poses when used without proper oversight. Around 46% of the managers surveyed had been asked to evaluate whether genAI could replace a role on their team. Among them, 57% concluded it could—and 43% followed through, using AI to replace a human position.
AI tools are increasingly embedded in the hiring and HR process as well. They’re used to streamline candidate screening, generate resumes, and even conduct initial interviews. One separate report by TestGorilla found that one in five employers in the U.S. and U.K. now use genAI to conduct first-round candidate interviews.
Interestingly, while 70% of employers now integrate genAI into hiring, only 38% prioritize AI-specific skills in job candidates—down from 52% the previous year. Employers are increasingly placing greater value on core human abilities like communication and critical thinking. The TestGorilla report also noted that 57% of U.S. companies have eliminated college degree requirements, and 74% rely on skills-based testing instead.
AI’s Expanding Role in Team Management
According to Resume Builder, AI is now deeply embedded in how managers lead their teams. An overwhelming 97% of managers who use AI said they rely on it to create training resources, 94% use it to build development plans, 91% for evaluating performance, and 88% to draft performance improvement plans (PIPs).
When asked which AI tools they use most, over half (53%) said ChatGPT, 29% preferred Microsoft Copilot, and 16% primarily used Google Gemini. Only 3% said they used a different AI tool more frequently.
Despite the growing dependence on AI, human involvement hasn’t vanished entirely. While 5% of managers said they always let AI make decisions and 16% said they often do, the majority said they intervene when they disagree with AI-generated recommendations.
Notably, 71% of AI-using managers expressed confidence in the technology’s ability to make fair and unbiased personnel decisions. However, experts caution that AI outputs are only as reliable as the data they’re trained on—and that without proper ethical training, serious consequences can follow.
Ethical Oversight Needed for Responsible AI Use
AI can be a powerful support tool, but it cannot replace human judgment, empathy, or context. Organizations must ensure managers are properly trained, provide clear guidelines, and implement AI responsibly if they want to avoid legal risks and uphold workplace integrity. genAI can boost efficiency, cut costs, and enable quicker decision-making, companies must be careful not to lose the human element of leadership.
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