The specter of job displacement due to Artificial Intelligence (AI) is a reality that the labor market must confront in the coming years. However, beyond the replacement of roles, a new challenge is emerging: the use of algorithms to manage existing personnel, from promotions to terminations.
The Meta Case and 'Automated' Layoffs
In the United States, AI is increasingly gaining a say in personnel decisions. A prominent example is the lawsuit filed by Meta employees in July. According to the allegations, the company reportedly used AI to decide on layoffs, resulting in a disproportionate impact on individuals with chronic illnesses, disabilities, or young children, as the algorithm interpreted their absences as problematic for the firm.
A survey by ResumeBuilder.com of over 1,300 US executives reinforces this trend, revealing that a clear majority of managers use AI for sensitive decisions:
- 78% for salary increases
- 77% for promotions
- 66% for layoffs
The EU Legal Framework and 'Grey Zones'
In the European Union, Article 22 of the GDPR sets boundaries, stating that significant decisions cannot, in principle, be made solely by a machine. Labor law professor Michael Fuhlrott emphasizes that a poor evaluation by AI would not constitute valid grounds for dismissal in a German labor court. Nevertheless, AI use in recruitment is already widespread, with 35% of senior executives in Germany already utilizing it.
Algorithmic Opacity in Compensation
Another concerning dimension involves salary determination. An analysis by the Roosevelt Institute in the US showed that nursing staff are paid differently for the same work at the same hospital, based on opaque algorithms. In some instances, pay was determined by how often employees applied for shift changes or even by the level of their credit card debt.
