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AI making HR decisions? 60% managers consult ChatGPT for layoffs
Six out of 10 managers consult an LLM for major HR decisions

AI making HR decisions? 60% managers consult ChatGPT for layoffs

Jul 06, 2025
11:04 pm

What's the story

A recent ResumeBuilder.com survey has revealed a disturbing trend among employers: the use of artificial intelligence (AI) to make layoff decisions. The survey, which involved 1,342 managers, found that six out of 10 consulted a large language model (LLM) for major HR decisions impacting their employees. This includes critical matters such as promotions and raises.

AI influence

Chatbot consulted for decisions

The survey revealed that 78% of managers used a chatbot to decide on employee raises, while 77% used it for promotions. Even more alarmingly, 66% said an LLM like ChatGPT helped them make layoff decisions. The trend is particularly worrying as nearly one in five managers often let their LLM have the final say on such decisions without any human input.

Tool usage

Over half of managers used ChatGPT

The survey also highlighted the popularity of AI tools among managers. Over half of them used OpenAI's chatbot, with Microsoft's Copilot and Google's Gemini coming in second and third, respectively. However, this widespread use is concerning considering the LLM sycophancy problem, where LLMs produce flattering responses that reinforce their users' biases. This issue has been particularly pronounced with ChatGPT, which had to be addressed through a dedicated update.

Impact

'ChatGPT psychosis' linked to job losses, divorces

The use of LLMs in decision-making has also led to severe mental health crises among some users. This phenomenon, dubbed "ChatGPT psychosis," is a delusional break from reality caused by over-reliance on these models. Despite being on the market for less than three years, ChatGPT has already been linked to divorces, job loss, homelessness, and even involuntary psychiatric care commitments.