Special offer 

Jumpstart your hiring with a $100 CAD credit to sponsor your first job.*

Sponsored Jobs posted directly on Indeed are 40% more likely to report a hire than non-sponsored jobs**
  • Visibility for hard-to-fill roles through branding and urgently hiring
  • Instantly source candidates through matching to expedite your hiring
  • Access skilled candidates to cut down on mismatched hires

AI for Performance Reviews: Pros, Cons and How to Make It Work for You

Our mission

Indeed’s Employer Resource Library helps businesses grow and manage their workforce. With over 15,000 articles in 6 languages, we offer tactical advice, how-tos and best practices to help businesses hire and retain great employees.

Read our editorial guidelines
6 min read

Chances are, you’re already using AI in talent acquisition to some degree. If you use AI resume screening tools, you already rely on AI data analysis to create efficient hiring processes. Using generative AI for performance reviews can support your HR team’s and business leaders’ workloads, but it comes with some caveats.

In this guide, we explore the benefits and limitations of using AI for performance reviews, offering practical tips for crafting effective AI prompts and integrating AI tools to enhance, but not replace, human oversight in the review process.

Ready to get started?

Post a Job

Ready to get started?

Post a Job

How AI can help with performance reviews

You can use AI for performance reviews to speed up the process, enhance your approach and ensure you have a broad understanding of employee performance before you discuss it. Specifically, generative AI tools such as ChatGPT and analytic AI software can help you:

  • Write performance reviews. Leveraging AI tools can speed up writing, reduce errors and communication issues and help you create a first draft.
  • Analyze employee performance. AI can quickly consider numerous performance metrics and trends, including work speed and accuracy, goal outcomes and attendance. It can return trend information in written or visual formats so you can assess an employee’s performance throughout the year.
  • Suggest next steps. A good performance review includes ideas for developing skills or supporting better outcomes. Generative AI can take into account past performance, the requirements for the position, and the current performance review to suggest relevant development plans for each employee.

How not to use AI for performance reviews

Performance reviews are inherently people-centric, and your reviews ideally reflect that. AI can present facts, but it doesn’t consider the humanity behind them, so it’s important to think about employee performance as you work on your reviews.

Generative AI can help you write performance reviews by providing inspiration or a foundation to build on. However, make sure not to overly rely on this tool. You can use AI-generated content as a starting point, but consider writing things in your own words to ensure a high-quality, personalized performance review for each employee.

Tips for integrating AI into performance reviews

To get the most out of AI for performance reviews, consider the tips below:

Choose the right tools

Not every AI tool works for every purpose. Just as you might consider all your options when selecting AI recruitment software, consider which tools are best for the performance review process. For example, AI analysis tools can help you gather and review performance data. You can use ChatGPT as a generative AI tool when you need help phrasing content for written reviews.

Think about your prompts

ChatGPT performance review prompts work best when you supply the AI bot with the right instructions and information.

Here’s a poor example of a ChatGPT performance review prompt:

Write a review for Sharon. I would rate her a 4 out of 5 as an employee. She does good work and is always here on time.

Here are three examples of ChatGPT performance review prompts that may return better results by being more specific:

  1. I need to write a paragraph about Sharon’s strengths as an employee. I’ve copied her performance metrics below, along with the baseline averages for the entire team, so you can see how she compares. I would also like to note that Sharon has exemplary attendance and is kind to everyone on the team. One team member told me that Sharon is the best listener on the team.
  2. Can you please help me with a section of an employee review? This review is for Sharon, and I need to list some areas where she can improve. I’ve included her performance metrics and the team averages below. Sharon is a great employee, and I can’t think of any improvements. Can you use the performance metrics to identify an area that has room for growth?
  3. I’m writing a performance review for Sharon. She has not done well this year and performs at a below-average rate on most of her metrics. I’m copying those metrics below. Could you please write a paragraph for a performance report that provides a helpful critique?

Double-check data

AI can be wrong. It can misunderstand information, include bias inherent in source data, or even create what is known as a hallucination, which is data that isn’t even there. For example, a hallucination relevant to a performance review prompt might be “Sharon missed 25 days of work this year” when Sharon only missed five days or the data didn’t include attendance information.

Take time to double-check AI-generated data before including it in a performance review to ensure it is free of inaccurate information.

Use AI to support you, not replace you

Ultimately, the best use of AI in performance review processes is as a supporting tool. It shouldn’t replace the manager’s or supervisor’s thought process, and the final review still needs personalized elements. If you’re incorporating AI evaluation tools into your performance review processes, make sure you train your leaders to add human oversight to ensure a more positive experience for employees.

Using AI for performance reviews can streamline processes, enhance data analysis and suggest development plans, but it requires careful integration. By choosing the right tools, crafting specific prompts, double-checking data and maintaining human oversight, organizations can leverage AI to support, not replace, personalized evaluations.

Recent Workforce management Articles

See all articles in this category
Create a culture of innovation
Download our free step-by-step guide on encouraging healthy risk-taking
Get the guide

FAQs about AI for performance reviews

Three individuals are sitting at a table with a laptop, a disposable coffee cup, notebooks, and a phone visible. Two are facing each other, while the third’s back is to the camera. The setting appears to be a bright room with large windows.

Ready to get started?

Post a Job

Indeed’s Employer Resource Library helps businesses grow and manage their workforce. With over 15,000 articles in 6 languages, we offer tactical advice, how-tos and best practices to help businesses hire and retain great employees.