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

AXIOS July 2, 2025
Megan Morrone

Managers are trusting AI to help make high-stakes decisions about firing, promoting, and giving their direct reports a raise, according to a new study from Resume Builder.

Why it matters: AI-based decision-making in HR could open companies up to discrimination and other types of lawsuits, experts tell Axios.

The big picture: Employers are increasingly pushing workers to incorporate genAI into their workflows, and gaining AI skills has been linked to better pay and increased job choices.

• But genAI training and policies at work are still rare, and the tools are changing so fast that it’s hard to keep up.
• Using AI to assess people’s careers is risky, especially when the tools are prone to hallucinations and poorly understood.

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