logo
Your manager is probably using AI to decide whether to promote or fire you

Your manager is probably using AI to decide whether to promote or fire you

Yahoo09-07-2025
If you're up for a raise anytime soon, chances are good that your manager will use AI to determine the amount in question—and, down the line, may even use AI to decide whether to fire you.
A simple shape turned the Coca-Cola logo into a timeless icon
McDonald's big announcement is a Spicy McMuffin and the return of the Snack Wrap: Both arrive this week
There's a reason your Sam's Club rotisserie chicken looks different
That's according to a June study from Resume Builder, which examined how managers are using artificial intelligence to make personnel decisions ranging from promotions and raises to layoffs and terminations. Of the 1,342 U.S. managers surveyed, a majority of them are using AI, at least in some part, to make decisions impacting employees: 64% of managers reported using AI tools at work, while 94% of those said their usage extended to decisions about direct reports.
For many managers, AI tools have already become central to the hiring process. According to Insight Global's '2025 AI in Hiring' report, 92% of hiring managers say they are using AI for screening résumés or prescreening interviews. Based on Resume Builder's new report, AI is now becoming an integral part of how managers interact with their employees—from the day they're hired until the day they're let go.
According to Resume Builder, managers are increasingly turning to AI for support with the day-to-day to-dos that come with supporting a team of employees.
Of those who reported using AI, 97% noted using it to create training materials, while 94% used it to build employee development plans, 91% used it to assess performance, and 88% used it to draft performance reviews. Beyond these daily tasks, though, some managers are turning to AI for help with higher-stakes decisions.
Per the study, 78% of managers who use AI have consulted it to determine raises, and 77% have used it for promotions. Meanwhile, a whopping 66% have put at least some stock in AI when deciding who should be laid off, and 64% have even turned to the tool for help with terminations.
When it comes to how much faith managers are actually putting in the decisions recommended by AI, the degree of trust appears to vary significantly.
While 24% of respondents said they sometimes let AI tools make decisions without human input, another 20% said they allowed AI to do so all the time or often. One in four managers reported that they'd actually replaced a direct report with AI. And, despite an increasing reliance on managerial use of AI tools, only one-third of the surveyed managers said they'd actually received official training on ethical AI use in the office.
'It's essential not to lose the 'people' in people management,' Stacie Haller, chief career advisor at Resume Builder, noted about this trend in a press release. '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, biased, or manipulated. Organizations have a responsibility to implement AI ethically to avoid legal liability, protect their culture, and maintain trust among employees.'
This post originally appeared at fastcompany.comSubscribe to get the Fast Company newsletter: http://fastcompany.com/newsletters
Orange background

Try Our AI Features

Explore what Daily8 AI can do for you:

Comments

No comments yet...

Related Articles

OpenAI announces new 'study mode' product for students
OpenAI announces new 'study mode' product for students

NBC News

time11 minutes ago

  • NBC News

OpenAI announces new 'study mode' product for students

OpenAI on Tuesday announced a new product within ChatGPT called 'study mode,' which aims to help students work through problems step-by-step before they arrive at an answer. As artificial intelligence chatbots like ChatGPT have rocketed into the mainstream, educators quickly discovered that students can use the tools to cheat and avoid engaging in critical thinking. OpenAI said it built study mode as 'a first step in a longer journey to improve learning in ChatGPT.' 'When ChatGPT is prompted to teach or tutor, it can significantly improve academic performance,' Leah Belsky, vice president of education at OpenAI, said during a briefing. 'But when it's just used as an answer machine, it can hinder learning.' One in 3 college-age people are already using ChatGPT, according to OpenAI, so the company designed study mode with this demographic in mind. Students who use the product will be met with guiding questions instead of direct answers while they work through homework problems, test prep and new subject material, the company said. OpenAI released a prerecorded demo that showed how a student could use study mode for help with a homework problem. After the student submits the question, ChatGPT has them work through two different steps and submit a summary of the answer in their own words. OpenAI said it built study mode in collaboration with teachers, scientists, education experts and students who participate in its ChatGPT Lab, which is where cohorts of college students share how they are using OpenAI's tools. The company's study mode announcement comes just days after OpenAI CEO Sam Altman suggested that AI could dramatically change the future of education. Altman, who dropped out of Stanford University, said his young child will 'probably not' go to college. 'I already think college is maybe not working great for most people,' Altman said during an interview on the podcast, 'This Past Weekend w/ Theo Von.' 'I think, fast forward 18 years, it's going to look like a very, very different thing.' Even so, OpenAI has still been working closely with academic institutions. The company released ChatGPT Edu last year, which is a version of the chatbot that's built specifically for universities. OpenAI said study mode is coming to ChatGPT Edu in the next few weeks, but it's available to Free, Plus, Pro and Team users starting on Tuesday.

Goldman Warns: The Market's Missing a Major Risk
Goldman Warns: The Market's Missing a Major Risk

Yahoo

time38 minutes ago

  • Yahoo

Goldman Warns: The Market's Missing a Major Risk

Wall Street is partying like tariffs don't matterbut Goldman Sachs' Peter Oppenheimer thinks that optimism might be premature. While investors pour back into US equities, betting on interest rate cuts and a smooth Trump second term, OppenheimerGoldman's chief global equity strategistwarns that markets could be overlooking serious downside risk. There's a degree of complacency, he told Bloomberg, noting that equity valuations are high and risk premia have come down. The tariff overhang might not spark a full-blown recession, but it could still hit stocks harder than markets are pricing in. In his view, now's a good time to get serious about diversification. Warning! GuruFocus has detected 4 Warning Sign with UNH. Oppenheimer made waves last year by calling out stretched US valuations just as AI mania was taking hold. While many strategists doubled down on domestic exposure, he turned the spotlight on long-ignored international markets. That contrarian bet is now paying off: MSCI's all-country ex-US index is up 17% this yeardouble the S&P 500's (SPY) 8.6% gain. Behind the call was a simple thesis: after a decade-plus of US dominance, the relative edge in profitability and returns was starting to fade. Add in geopolitical risk and shifting global growth dynamics, and the case for rebalancing away from the US became harder to ignore. With four decades in the game, Oppenheimer has seen how sentiment can shift fastbut the biggest returns come from spotting slow-moving structural shifts before they go mainstream. He believes today's generation of investorsraised on near-zero interest rates and instant feedback loopsmight be too focused on short-term noise. His advice? Be patient, stay diversified, and don't mistake a rebound for a risk-free rally. Even if the US avoids a tariff-induced recession, broader exposure could be the edge investors need in what's still a volatile and uncertain market. This article first appeared on GuruFocus. Sign in to access your portfolio

No tariff pause announced after US-China talks, with Trump set to make the 'final call'
No tariff pause announced after US-China talks, with Trump set to make the 'final call'

Yahoo

time38 minutes ago

  • Yahoo

No tariff pause announced after US-China talks, with Trump set to make the 'final call'

US and Chinese negotiators wrapped up two days of talks Tuesday without an immediate announcement of a further tariff delay between the world's two largest economies as markets watch closely for an offramp to avert additional duties that could be in the offing in about two weeks time. "We're going to head back to Washington DC and we're going to talk to the president about whether that's something that he wants to do," said Trade Representative Jamieson Greer after the talks concluded in Stockholm, Sweden. "The president can make a final call," he added. Treasury Secretary Scott Bessent added Tuesday that it was "a very fulsome two days" of talks and that another 90-day pause remains on the table with the overall tone of talks being "very constructive." Trump himself was asked later in the afternoon about the chances of approval, telling reporters on Air Force One he had just spoken to Bessent and that he would decide after a briefing but that Bessent felt good about Tuesday's meeting. "The two sides will continue to push for the continued extension of the pause," added Chinese trade negotiator Li Chenggang, according to a translation, in his own comments to reporters. But Trump's team repeatedly underlined Tuesday that rates could "boomerang" back to the much higher April levels depending on the president's decision, and that nothing is final until Trump signs off. Bessent added that negotiators didn't discuss a face-to-face gathering between the two presidents, and that the focus was on policy from Russian oil consumption to rare earth minerals to Chinese export controls and "not to discuss if there would be a meeting." Trump added Tuesday he remains hopeful he will meet with Xi "before the end of the year." The lack of that hoped-for tariff announcement (at least for today) could raise concerns that the current headline rates of 30% on Chinese imports and 10% on American goods (though sector-specific tariffs push overall tariffs higher) could rise amid fears of a market-rattling snap back to triple digital levels seen earlier this year. The higher rates are scheduled to kick in Aug. 12 absent another pause. It was the third meeting of the American and Chinese trade teams in recent months, with previous gatherings having taken place in Geneva and London. Bessent said Tuesday that each meeting has built on the last. He Lifeng, China's vice premier for economic policy, led the talks for his country. His colleague Li Chenggang added that the two sides had "candid exchanges over each others trade and economic concerns." No announcements on tariffs or a face to face meeting This latest round of talks had an array of issues on the table, from solidifying recent progress on semiconductors (including a plan to allow the resumption of Nvidia's (NVDA) AI chip exports to China) as well as Chinese exports of rare earth minerals and China's consumption of Russian oil. "Both sides reviewed the implementation of the Geneva and London consensus and fully recognized the implementation," China's Li added Tuesday of those closely watched provisions, saying according to a translation that "the two economic and trade teams will continue to maintain close communication." But the lack agreement on tariffs came after a series of conciliatory signals from the US side, with the Financial Times reporting that Trump officials have paused tech exports controls for now in part to improve the odds of progress. Taiwanese President Lai Ching-te has also canceled a sensitive trip to Latin America that would have included a stopover in the US that had angered Beijing. The lack of an announcement also came after days of positive signals suggested one was likely. Commerce Secretary Howard Lutnick offered on FOX News Channel Monday evening of the 90-day pause idea 'Is that a likely outcome? Sure, it seems that way. But let's leave it to President Trump to decide.' The widely expected scenario is expected to be a balm to markets if Trump eventually approves the deal. 'As long as they push the deadline out 90 days and we don't revert to those 145% tariffs that the president sort of escalated earlier in the year, then the market doesn't much care,' Henrietta Treyz of Veda Partners noted on Yahoo Finance Tuesday morning. The announcement of another pause came during another crucial week for Trump's trade agenda and after a pact was announced with the European Union Sunday that sets 15% tariffs but key other trade questions remain outstanding Negotiations continue with Europe as trade watchers await a formal joint statement on the deal and negotiators still apparently at work to lock in legally binding text. It also comes ahead of another deadline looming this Friday with other countries — from India to Canada to Taiwan to Mexico to South Korea — who are in talks to strike a deal before Trump's self-imposed reciprocal tariff deadlines. Those negotiations now need to come to a head one way or another before Friday with President Trump saying scores of other nations will simply receive letters in the coming days to announce their tariff rates which he says says will start in the 15-20% range. This post has been updated with additional developments. Ben Werschkul is a Washington correspondent for Yahoo Finance. Click here for political news related to business and money policies that will shape tomorrow's stock prices Solve the daily Crossword

DOWNLOAD THE APP

Get Started Now: Download the App

Ready to dive into a world of global content with local flavor? Download Daily8 app today from your preferred app store and start exploring.
app-storeplay-store