Quick Buzz Feed
Employers have shifted from using AI for sorting resumes to taking its advice on which employees to eliminate in layoffs, according to a recent workforce report.
Employers are increasingly using AI for layoffs, not just hiring. A recent report indicates that 28% of HR directors are considering using AI for layoff decisions, reflecting a shift from AI's traditional role in resume sorting. This expansion of AI has already led to significant job cuts, particularly within the technology sector.
A MyPerfectResume survey of 1,000 hiring managers found that 52% use AI to generate productivity data for workforce planning, including restructuring and role evaluation, with another 28% considering it for layoffs. While AI provides valuable insights from large datasets, career experts like Jasmine Escalera caution against using it as the sole driver for staffing decisions, noting its widespread use (73% of recruiters use AI for application management) and increasing impact on job cuts, especially in tech. Challenger, Gray and Christmas reported AI as the top reason for downsizing in April, accounting for 21,490 job cuts (26% of all downsizing).
Surveys reveal widespread worker anxiety regarding AI's impact on employment. A Resume Now survey found 60% believe AI will eliminate more jobs than it creates by year-end, with 51% worrying about job loss to AI and 46% expecting replacement by 2030. Adnan Malik, CEO of Software Finder, notes that while 75% of job seekers use AI for applications, only 1 in 10 trust it for fair hiring decisions, highlighting concerns about legal liabilities and potential biases, as exemplified by Amazon's biased AI recruiting assistant.
Despite growing AI adoption, concerns about its fairness and effectiveness persist. The MyPerfectResume report shows that 65% of HR bots rejected applicants before human review, and 47% filtered out qualified contenders. While 51% of hiring managers expressed confidence in AI's fairness during layoffs, many expressed doubts or opted not to use AI for such decisions. Experts emphasize that over-reliance on AI can overlook crucial human aspects like potential, growth, and team contribution, predicting that human connection and vulnerability will become more vital in a job market increasingly shaped by bots.