HiBob, has released new research revealing how AI is now informing some of the most consequential decisions in the workplace, from pay rises (50 per cent) and promotions (51 per cent) to performance ratings (64 per cent) and redundancies (42 per cent).
Crucially, the findings suggest AI is working in employees’ favour. More than half (57 per cent) of HR professionals using AI to review people decisions say it has prompted them to reconsider an employee initially passed over for promotion, while 43 per cent report a more favourable final decision on pay rises and 40 per cent on promotions following an AI-informed review.
That willingness to take another look extends to managers’ judgements. Almost three-quarters (73 per cent) say they have used AI information to challenge a manager’s proposed people decision, including 42 per cent who did so because an employee’s or candidate’s skills or potential had been overlooked.
The findings suggest AI is giving HR professionals the Organisational Intelligence needed to question managers’ assessments and identify talent that might otherwise be missed.
Recruitment and performance reviews are also seeing different outcomes. Among those using AI to review these decisions, 40 per cent report a more favourable outcome for a candidate’s progression through recruitment or job offer, while 42 per cent report the same for employee performance ratings.
“AI is here to stay, and it’s changing how businesses operate,” says Ronni Zehavi, CEO and Co-Founder of HiBob. “But this isn’t just about technology. It’s about making better decisions. If AI can help HR challenge a manager’s assumptions and recognise talent that might otherwise be overlooked, that’s a huge opportunity.
“This is where organisational intelligence comes in. By connecting information about people, skills and performance, we can understand the bigger picture and make smarter decisions. HR leaders have an opportunity to lead this transformation, not simply react to it.”
Beyond individual career decisions, HR professionals are using AI to analyse workforce information (47 per cent), screen candidates or review hiring recommendations (45 per cent) and prepare or review performance assessments (40 per cent). Almost a third (31 per cent) have used it to plan changes to jobs, skills or how work is organised.
Adoption varies across HR functions, however, with more than a third of teams not currently using AI information for pay-rise recommendations (38 per cent) or promotions (33 per cent), while 39 per cent do not use it for grievances or disciplinary matters.
As AI becomes part of these decisions, HR teams are also putting checks in place. The majority (59 per cent) say AI information is checked for accuracy and relevance, while 45 per cent review proposed decisions for unfair or inconsistent treatment and 41 per cent consider individual circumstances that AI may have missed.
