How Managers Are Using AI to Hire and Fire People

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How Managers Are Using AI to Hire and Fire People
Illustration by The Epoch Times, Getty Images
Illustration by The Epoch Times, Getty Images
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The role of artificial intelligence (AI) in the workplace is evolving rapidly, and some are warning that using AI to make executive decisions without careful consideration could backfire.

AI is being used more and more in recruitment, hiring, and performance evaluations that could lead to a promotion or termination.

Researchers, legal experts, legislators, and groups such as Human Rights Watch have expressed concern over the potential that AI algorithms are a gateway to ethical quagmires, including marginalization and discrimination in the workplace.

This warning bell isn’t new, but with more managers using AI to assist with important staff decisions, the risk of reducing employees to numbers and graphs also grows.

A Resume Builder survey released in June found that among a group of 1,342 managers in the United States, 78 percent use AI tools to determine raises, 77 percent use it for promotions, 66 percent use it for layoffs, and 64 percent use it for terminations.
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The same analysis showed that more than one in five respondents frequently let AI make final decisions without any human input.

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The use of AI as a human resource tool is already a cautionary tale. In an unprecedented 2023 workplace discrimination case, digital labor platform iTutorGroup paid $365,000 to settle a federal lawsuit brought by the U.S. Equal Employment Opportunity Commission (EEOC).

The English language tutoring service was forced to pay damages to job applicants who were filtered out by its AI algorithm. The company used an AI algorithm that automatically rejected more than 200 applicants based on their age. The candidates were automatically disqualified if, in the case of women, they were older than 55 years old. Male applicants 60 years and older were also rejected.

“Hundreds of applicants lost out on employment during a difficult time for job seekers,” Timothy Riera, acting director of the EEOC’s New York District, said in a statement.
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The emblem of the Equal Employment Opportunity Commission is displayed on a podium in Vail, Colo., on Feb. 16, 2016. In a 2023 case, digital labor platform iTutorGroup paid $365,000 to settle a federal lawsuit brought by the commission after the company used an AI algorithm to automatically reject more than 200 applicants based on their age. David Zalubowski/File/AP Photo

Avoiding Dehumanization

Civil regulations and government legislation are being put forward as a guardrail against the use of AI to evaluate and monitor employee performance.
In March, the California Civil Rights Council finalized its regulations surrounding AI decision-making systems in the workplace, which go into effect on Oct. 1. The regulations include protections for employees against the use of AI systems to increase company efficiency. This encompasses actions such as hiring assistance, firing, and promotions.
At the federal level, Sen. Chuck Grassley (R-Iowa) introduced the AI Whistle Blower Protection Act in May. If passed, the bill will offer employment compensation and protection from retaliation to those working directly with AI who choose to disclose issues with these systems.
“Today, too many people working in AI feel they’re unable to speak up when they see something wrong. Whistleblowers are one of the best ways to ensure Congress keeps pace as the AI industry rapidly develops,” Grassley said.

Additionally, the states of Illinois, California, and New York have proposed, introduced, or passed legislation aimed at protecting workers from AI algorithmic discrimination in areas including recruitment, hiring, promotion, employment renewal, discipline, and training.

Business owners, AI experts, and managers using these digital tools to make decisions affecting employees have stressed the need for human oversight.

“I’ve used AI in recruitment. Tools like ChatGPT-powered screening systems and resume parsers have been game-changers,” AI expert and consultant Peter Swain told The Epoch Times.

Swain is the CEO of a namesake company that focuses on helping entrepreneurs strike a balance between AI systems and their human workforce. He illustrated the pros and cons of using AI systems to handle executive tasks.

“Advantages? Speed and scalability—AI can process 1,000 resumes in the time it takes a human to read 10. It also reduces bias if trained properly,” Swain said.

“Disadvantages? Garbage in, garbage out. If the AI is trained on biased data, it perpetuates those biases. Plus, it lacks the human touch—cultural fit and soft skills can’t be fully assessed by an algorithm.”

Data-driven tasks are where AI tools tend to shine, Swain said, but using them for actions such as raises, promotions, and layoffs is “tricky territory.”

“I’ve dabbled with AI-driven performance analytics—tracking [key performance indicators], productivity ... but I’d never let it make the final call,” he said. “It’s a tool, not a decision-maker. The risk is dehumanization, reducing people to data points.”

Swain also called AI’s use in managerial decisions an ethical “minefield.”

“AI can amplify biases if not carefully monitored—think gender, race, or age discrimination baked into training data,” he said. “Transparency is key. Employees need to know how decisions are made and have recourse to challenge them. Accountability matters—if AI screws up, who’s responsible? You can’t just blame the machine.”

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A software company’s booth during the AI+Expo Special Competitive Studies Project in Washington on June 2, 2025. As AI technology advances, its use in company administrative work has become more common. Madalina Vasiliu/The Epoch Times

Volumes of Data

Stephen Engel, CEO of Sanative Recovery and Wellness, told The Epoch Times that he recently used the AI chatbot ChatGPT to assist with deciding whether to fire an employee.

He said that although AI didn’t make the final decision, its ability to handle volumes of data quickly allows managers to think more clearly and “step back from the emotion of the situation” and analyze situations more objectively.

“To me, that’s the real value of AI in this context. ... It allowed me to think through the situation, weigh options more rationally, and ultimately decide on the best course of action,” Engel said.

“I also used ChatGPT afterward to help guide my thinking about what qualities and strengths to prioritize for my next hire. Again, not as a replacement for human judgment, but as a tool to focus my thinking.”

Some business owners use AI tools to identify employees who need help.

“Our AI voice simulations let new employees engage in realistic mock calls from day one. These interactions are scored automatically and paired with coaching opportunities. It’s a way to see quickly who’s progressing and who might need more support,” Lonnie Johnston, CEO of the training platform WizeCamel, told The Epoch Times.

“Our platform helps surface employees who are struggling early and tracks whether they are improving on an acceptable schedule.”

He gave a recent example of how AI evaluations provided data to help supervisors make decisions.

“We worked with a team of new agents who all began mock calls the same week,” he said. “Each received an initial score and coaching feedback, then repeated simulations over several days with additional feedback loops. Some improved rapidly. Others did not. That data gave managers a clear, fair picture of who was likely to succeed.”

He stressed that although AI is a critical tool in decision-making, it shouldn’t make the final call.

“The ethical concern comes when AI is used to make final decisions without human involvement,” Johnston said, emphasizing that AI should help managers make informed choices, not replace human thinking.

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A phone displays the ChatGPT app, in this photo illustration. On its website, OpenAI encourages users who engage with ChatGPT to review any information provided critically and to verify it with reliable sources. Oleksii Pydsosonnii/The Epoch Times
When it comes to performance evaluations, performance enhancement platform Betterworks published a State of Performance Enablement report in 2024 that found that two out of three managers said they need more support to handle employee performance.

In the same analysis, 35 percent of managers said they’re already using AI tools to improve workplace efficiency and effectiveness.

According to Betterworks, AI should be utilized alongside users and support managers with “intelligent suggestions, delivering comprehensive summaries of feedback, and enabling employees to craft meaningful goals that align with broader organizational objectives.”

On its website, OpenAI encourages users who engage with ChatGPT to review any information provided critically and to verify it with reliable sources.

“When it comes to such things as promotions, wage increases, or layoffs, we are not ready to trust AI,” Chris Kirksey, founder of health care SEO data analysts Direction.com, told The Epoch Times.

Kirksey said he uses AI for specific tasks at his company, including recruitment, but said these tools are “not ideal” in many ways.

“Robots cannot read between the lines and know the situation of an employee,” he said, pointing out that AI can’t identify whether a performance issue is related to a specific event or personal problem that may be affecting an otherwise good worker.

“AI can be used as a source of data, but it cannot sense such nuances. We always believe that such important decisions should not be taken away by human judgment. Technology assists us at the company, but the decision will always be made by human beings because they can see the entire picture.”

He said he shares the growing concern surrounding data bias.

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Many workplaces are increasingly using AI tools to evaluate employee performance, but some company leaders warn that such platforms cannot fully analyze situations in the way that humans can. Hackcapital/Unsplash

Expanding Into Uncharted Waters

As is the case with rapid technological advancement, there’s no going back once the train leaves the station.
A study of 131 AI trends for 2025 revealed that more than half of companies plan to incorporate AI into their businesses, and the same percentage anticipate that AI will help improve decision-making processes. In the same analysis, conducted by California-based National University, 60 percent of business owners said they believe that AI will increase their productivity.
In a January report, McKinsey & Company forecast the long-term AI return on investment for businesses at $4.4 trillion in added productivity growth. The global consulting firm also stated that 92 percent of companies plan to increase their AI investments.

Swain said his own business is expanding its investment into AI, albeit with caution.

“The plan is to integrate more sophisticated tools for recruitment—like AI-driven behavioral assessments—and refine performance tracking systems,” he said. “But the focus is on augmentation, not replacement. AI should empower managers, not replace their judgment.”

Johnston is taking a similar approach to expanding AI’s role in managerial decisions.

“We’re deepening how we track skill development during onboarding and beyond,” he said.

“When someone continues to struggle, even with support, it becomes easier to make confident, compassionate decisions based on real evidence.”

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