Getting fired by AI? It’s more likely than you think. New reports suggest that AI is now making firing decisions for managers, often working with limited oversight. Not only is AI the reason for many workers losing their jobs, but it is also participating in the decision to determine who is eliminated from the workforce, giving workers another reason to fear the tool. The data shows that managers are using AI to terminate employees, even going so far as to consult with the chatbot to determine whether an employee should be rewarded with a promotion or not.
While AI can be an extremely useful tool within the workplace, there is a high risk of organizations losing out on authentic perspectives and rational thinking from employees due to an overreliance on artificial intelligence. AI can aid in consolidating data or identifying key data points, however, turning to the tool for work that requires human insight only makes the obsolescence of employees more pronounced. AI’s impact on hiring and firing cannot go unacknowledged as organizations make it apparent that these tools are here to stay.
Image: Pexels
AI Is Making Firing Decisions for Managers—Is an Overreliance on Technology the Best Strategy?
It’s another day of employers terrorizing employees with AI. If you were unsure about just how much of an impact this new-gen technology was having on the workplace, the data regarding AI making decisions on firing and layoffs might shock you. In a recent survey of 1,342 managers conducted by ResumeBuilder, 94% of managers stated they have used AI tools to make decisions regarding the people who report to them.
Around 66% of respondents stated that they used LLMs like ChatGPT to make decisions on layoffs, with 64% of them having used it for terminations as well. If that wasn’t enough, AI was used in performance evaluation as well, with 78% using it to determine raises and 77% using it for decisions on promotions. From creating training material to drafting performance improvement plans (PIPs), managers are turning to AI for it all.
Over 1 in 5 of the respondents admitted that they allowed AI to make the final decision on matters without human input. This is one of the most concerning elements of this report, as it showcases the callous and uncaring approach that stems from relying on AI for the simplest of tasks for convenience over quality decision-making.
Automation of Layoffs with AI Does Not Occur via AI Experts
One would assume that for someone to rely on AI tools so vehemently, they must be individuals with expertise in the matter of these tools in the same way an analyst would with data reports. However, this is simply not the case. Over two-thirds of these managers utilizing AI to make life-altering decisions have no formal training on AI.
As concerning as the data is, it is important to note that it is likely that many of these managers are turning to AI due to instructions they received from the top. Many businesses are forcing employees to explore AI usage in their work, with companies like Microsoft also going so far as to add AI use as a performance evaluation criterion in employee reviews. Workers who don’t want to be targeted by the organization are forced towards AI tools, regardless of whether they have a plan on how to use them.
Reportedly, nearly half of the managers from the ResumeBuilder survey stated that they were asked to analyze whether AI could replace a position. While 57% determined that AI could replace a position, 43% claimed they had already replaced a human position with AI. Now more than ever, organizations are looking for shortcuts and quick solutions to getting the job done, and inevitably, this is affecting the employees who work there for a living.
It Is Very Important to Be Careful About How AI Is Used in HR
Over the years, the conversation surrounding AI use in the workplace has evolved from AI coming for our jobs to AI users being the real threat to an individual’s career. While this is true to an extent, it also appears that AI tools could be deciding our fate just as easily. It’s no secret that artificial intelligence is reshaping the workplace and redirecting how we work. It’s now growing impossible to ignore AI tools, and as a result, most businesses are looking at avenues for their integration.
AI can be extremely useful in automating time-consuming, rote tasks and can present users with a wealth of information for further analysis. Data-driven decisions are critical for the workplace to thrive, however, it is important to remember that it is still just a tool. AI, no matter how advanced, lacks some element of critical thinking and does not have the ability to pick up on the nuances of every situation.
Human Supervision Is an Essential Part of AI Making Firing Decisions
It may be impossible to avoid AI’s impact on hiring and firing, but the final decision must fall to human oversight. Legislation is being explored precisely for this reason, but even if your state does not have mandates in place, it is important to take charge of the bare minimum and ensure that AI tools are supervised.
If managers are using AI to terminate employees, they need to be well-versed in the utilization of AI tools and the analysis of the output to ensure that the decisions made are sound. When you think about it, if a manager only has to churn out an AI report on whether an employee should be terminated, eventually, there will be no need for a manager in that position. It is important to remember that the human element is an essential part of AI use.
Human Resources and People Management are fields that thrive on the basis of human capital, and eliminating their involvement in the decision-making process can be extremely detrimental to an organization.
Subscribe to The HR Digest for more insights into the ever-evolving landscape of work and employment in 2025.