Most managers now rely on AI for hiring and firing, study finds

A significant number of workplace managers are using generative AI (genAI) tools — particularly OpenAI’s ChatGPT, Microsoft Copilot, and Google Gemini — to make critical personnel decisions, including who gets promoted, who gets a raise and who gets fired, a new survey found.

The online survey by Resume Builder was conducted in late June and included 1,342 US managers; it showed 60% of them now use genAI tools to make critical decisions about their direct reports. Among those managers, 78% use the technology to determine raises, 77% for promotions, 66% for layoffs, and 64% for terminations, with more than one in five frequently allowing genAI to make final decisions without human input.

Those surveyed by Resume Builder needed a college degree, had to be over 25, work in management, and work at a company with 12 or more employees.

About 65% of managers said they use genAI tools at work, and among them, nearly all (94%) use them to make decisions about the people who report to them. Nearly half of managers surveyed said they use genAI all the time or often for several workplace tasks.

Despite that growing use, two-thirds of managers lack genAI training, and nearly half have been asked whether genAI could replace their teams, the survey found.

Resume Builder

About 46% of respondents using genAI in people management said they were tasked with evaluating whether the technology could replace a position. Among those managers, 57% determined it could — and 43% followed through and replaced the human position with genAI, according to Resume Builder.

Employers and job seekers are increasingly using genAI to streamline tasks like candidate short-listing and resume writing, and data shows it boosts success in landing jobs or finding the right hire. For overworked human resources and hiring managers, genAI can create a short list of potential candidates in seconds — and automate much of the onboarding process.

On the downside, genAI can sometimes overlook qualified candidates due to biased or narrow criteria.

Another recent study by TestGorilla revealed one in five US and UK employers now use genAI tools for initial candidate interviews, making genAI-based hiring mainstream.

Seven in 10 of employers use genAI in hiring, but only 38% seek AI-specific skills — that’s down from 52% last year — as they now value human talents such as critical thinking and communication. Fifty-seven percent of US employers have dropped college degree requirements; 74% use skills tests, according to TestGorilla.

When managers surveyed by Resume Builder were asked which tool they rely on most, ChatGPT took the top spot (53%), Microsoft’s Copilot was second with (29%), while 16% said they mostly use Google’s Gemini. Just 3% said they primarily use a different genAI tool.

Managers use genAI to manage teams in a variety of ways. Nearly all (97%) use it to create training materials, 94% to build employee development plans, 91% to assess performance, and 88% to draft performance improvement plans (PIPs), Resume Builder found. Among managers who use AI to help manage their teams, fully 71% express confidence in its ability to make fair and unbiased decisions about employees.

More than a fifth of the managers allow genAI to make decisions without human input either all the time (5%) or often (16%), while another 24% sometimes do. However, nearly all said they are willing to step in if they disagree with an AI-driven recommendation.

Even so, only 32% of those using the technology to manage people said they’ve received formal training on ethically using it, while 43% have received informal guidance. And 24% said they’ve received no training at all.

Stacie Haller, chief career advisor at Resume Builder, said risks arise when managers rely on genAI to make decisions without proper training. While it can aid decision-making, genAi lacks empathy and context. Its outputs also reflect potentially flawed data, so ethical use is key to avoiding liability and preserving trust, according to Haller.

“It’s essential not to lose the ‘people’ in people management,” she said. “Organizations have a responsibility to implement AI ethically to avoid legal liability, protect their culture, and maintain trust among employees.”

Haller said companies encourage managers to use genAI to improve efficiency, enable faster decision-making, reduce overhead, and support data-driven insights that enhance productivity and scalability. But for it to be truly effective in people management, it must be implemented thoughtfully, used responsibly, and always paired with human oversight.

“Organizations must provide proper training and clear guidelines around AI, or they risk unfair decisions and erosion of employee trust,” she said.