Commentary: Should managers use AI to judge employees?

“As AI takes on more analytical and cognitive tasks, we are entering what I describe as the ‘Judgement Economy’, where information and prediction are abundant but sound human judgement becomes increasingly valuable.

"AI can undoubtedly improve management. In recruitment, it can screen large applicant pools consistently. In performance management, it can identify patterns managers might overlook, detect workload imbalances and reduce some forms of human bias. It can also help allocate shifts by balancing operational requirements with employee preferences.

"However, our research on algorithmic management suggests the greatest risk is not simply AI making poor decisions. It is how those decisions change the relationship between employees and organisations.

"When decisions are perceived as opaque, coercive or beyond employees’ control, workers can experience technology-induced alienation, with diminished autonomy, reduced trust and social disengagement. Systems designed to improve efficiency could ultimately undermine the performance they seek to enhance.

"This is particularly important for decisions about promotion, redundancy or dismissal. These require more than predicting performance. Managers must understand context, recognise potential, consider exceptional circumstances and exercise moral responsibility.

"An algorithm can estimate who is most likely to succeed, but it cannot determine what is fair or just.

"The future of management should therefore not be one in which AI replaces managerial judgement, but one in which it strengthens it. AI can provide richer evidence, reveal patterns and improve consistency, but managers must remain responsible for interpreting that evidence and making the final decision.

"Good management is not simply choosing the statistically optimal option. It is making decisions people can trust and for which someone is willing to be held accountable. That responsibility should remain fundamentally human.”