Can AI Make Performance Reviews Fairer?

In recent years, workers have become increasingly skeptical about integrating AI into their daily tasks. Many feel overwhelmed by the constant buzz around AI, struggle to adapt to new tools, and often find these tools add complexity rather than simplifying workflows. However, there is one surprising area where employees are eager to see AI applied: performance reviews.

A recent Gartner survey of over 3,000 U.S. workers revealed that over 80% believe AI algorithms could deliver fairer and more accurate performance reviews compared to human managers. Additionally, nearly 60% of respondents think AI is less biased than humans when it comes to compensation decisions.

This growing interest in AI-assisted evaluations comes as organizations place increasing emphasis on performance metrics, especially as they navigate hybrid work environments or mandate a return to the office. For example, Meta CEO Mark Zuckerberg recently announced plans to cut 5% of his workforce, targeting “lowest performers.” However, performance challenges often stem from organizational issues, such as unclear goals or insufficient communication, rather than individual shortcomings, according to Doug Dennerline, CEO of Betterworks.

To address these concerns, new AI tools aim to make performance management more transparent, efficient, and less biased. By automating repetitive tasks, AI can relieve managers of time-consuming duties. But as Gartner points out, the effectiveness of these tools depends heavily on a solid performance management foundation. Without clear processes and quality performance data, AI could become more of a liability than a benefit.

Laying the Groundwork for AI Success

For AI to enhance performance reviews, organizations need robust systems for collecting and managing feedback. Continuous feedback is essential, but it’s often a challenge to gather and standardize. Gartner recommends formalizing processes for collecting performance feedback and capturing "invisible data"—such as verbal interactions and behaviors—which AI alone may not fully account for.

While AI can assist in collecting and analyzing objective data, it cannot replace human judgment entirely. Managers will still play a critical role in finalizing major decisions and interpreting nuances that AI might miss. For example, AI might analyze skills and project outcomes effectively, but evaluating employee behavior—such as teamwork, adaptability under stress, and interpersonal dynamics—requires human observation and interaction.

Organizational leadership expert Mamie Jones highlights that performance reviews often involve two distinct categories: skills-based goals and behavior-based goals. While AI can gather objective metrics like project outcomes, understanding behavioral performance demands a human touch. In dynamic and team-based environments, this distinction becomes even more critical.

Striking the Right Balance

Experts caution that while AI offers the potential to streamline performance reviews, it may fall short on delivering meaningful, detailed insights. As Emily Rose McRae, a senior director analyst at Gartner, explains, AI-generated reviews often lack depth, substance, and specific examples of accomplishments or behavior. To truly add value, AI tools need to integrate data from various sources to help managers create comprehensive and actionable reviews.

The Future of AI in Performance Management

AI has the potential to transform performance management, but its success hinges on thoughtful implementation. Organizations must prioritize building strong systems, fostering continuous feedback, and striking a balance between automation and human oversight.

At Burke Recruiting Inc., we understand the importance of making unbiased, data-driven decisions in hiring and performance management. Our team works with businesses to implement innovative recruitment and management solutions tailored to their needs. To learn more about how we can help your organization, visit us at burkerecruiting.com.

Reference: https://www.worklife.news/technology/can-ai-make-performance-reviews-less-biased/