A Resume Builder survey of 1,342 managers in the US finds 60% say they rely on AI to make personnel decisions, 78% of which use the tech in deciding raises
Context & Ripple Effects
This survey extends a long-running shift from automating HR workflows toward algorithm-assisted management: earlier coverage documented AI automating HR and workforce-management tasks, while a 2023 survey found HR leaders expected software and algorithms to inform layoff decisions.
It matters because the reported use reaches compensation decisions, an especially consequential employment outcome. That broadens the workforce impact that many US adults anticipated from AI beyond recruiting or administrative tasks.
First-order effects
- Managers reporting AI reliance now place the technology inside personnel-decision workflows, including raise deliberations.
- Employees may have compensation outcomes shaped by AI-assisted inputs, increasing the importance of how managers review and challenge those inputs.
Second-order effects
- HR software and AI vendors face pressure to make recommendations explainable and usable in manager review, especially where decisions affect pay.
- Employers that use these tools will need clearer internal accountability for outputs, echoing the earlier expectation that algorithms would inform layoff decisions.
Third-order effects
- If AI use spreads across hiring, layoffs, and pay, workforce management could shift from manager-led judgment supported by software to software-mediated judgment reviewed by managers.
- That shift is likely to make governance, auditability, and employee trust central competitive requirements for HR AI, rather than secondary product features.
The trend: AI is moving from back-office HR automation into higher-stakes decisions about how workforces are staffed, evaluated, and compensated.