Highlights:
- “Meaningful appraisals still require empathy, reflection, and a coach-like mindset,” explained Anushree Kose, Vice President – People & Ecosystem Growth at PIPRA Solutions. “This is why the future is AI + HI (Human Intelligence).“
- “AI is not replacing the human element in performance reviews; it is replacing the bias,” Kose added.
Traditionally, performance management and review have been an intrinsic part of the appraisal process. With the inculcation of artificial intelligence (AI) in the same, performance management has now taken a new turn with its own set of pros and cons.
An October 2024 Gartner survey of nearly 3,500 employees found that 87% of employees think that algorithms could give fairer feedback than their managers right now.
Shedding light on how AI might affect the human presence within performance evaluation, Anushree Kose, Vice President – People & Ecosystem Growth at PIPRA Solutions, emphasised that AI might be here to stay, but at the cost of people.
“AI is not replacing the human element in performance reviews; it is replacing the bias. When implemented responsibly, AI shifts organisations from subjective ratings to reality-based, transparent appraisals,” stated Kose.
AI and Appraisals
With the rapid adoption of AI across all sectors, the use of the latest technology in performance management is not just about progress, but also about leveraging available sources in the best possible way.
“Across India, companies are adopting AI because it addresses long-standing gaps in traditional appraisal systems. Annual reviews often rely on memory, personal judgment, and inconsistent standards. AI changes this by offering:
- Real-time performance visibility
- Objective analysis based on actual work patterns
- Fair, standardised evaluation frameworks
- Stronger insights for hybrid and distributed teams
As organisations scale, the need for unbiased, data-backed performance management has become essential,” explained Kose.
She added that her own company is leading the shift by adopting Amazon Q, helping “derive contextual insights, summarise contributions, and identify performance patterns with far greater accuracy.”
Another reason for adopting AI in performance management is the shift from annual reviews to continuous feedback. The increasing prevalence of the latter requires leaders, managers, and seniors to have real-time insights at hand and to act accordingly, especially during the appraisal process.
How AI Aids in Performance Management
The adoption of AI in performance management has provided companies with numerous advantages, delivering real-time results.
- Objectivity and Consistency: Through pre-established parameters and a lack of human bias, AI can provide objective and consistent evaluation of an employee’s work.
- Real-time Feedback and Speed: Many companies in India are using real-time AI feedback loops to catch issues early and reward contributions promptly.
- Personalised Development: AI can auto-generate tailored upskilling paths based on performance gaps and career goals without waiting for a set date.
- Scalability for large workforces: AI helps scale calibration and pay decisions while reducing administrative load. An increased workforce can be a boon when using AI rather than increasing the workload.
What to Keep in Mind When Using AI
Building on her experience with AI and performance management, Kose shared three fundamentals that leaders should keep in mind:
Transparency Creates Trust
“Employees must clearly understand what data is being captured and how it is used,” explained Kose, adding that in her own company, they openly share how Amazon Q supports the evaluation process while safeguarding privacy and integrity.
AI Should Guide Decisions, Not Make Them
“AI offers insights, but the final assessment must remain human-driven,” Kose emphasised. She explained that leaders should use modern tools to prepare better, rather than replace their judgment.
Ethical Safeguards are Non-Negotiable
“Algorithms need regular audits to eliminate bias,” Kose clarified. She particularly highlighted the importance of HR in the process and the need to ensure that AI benefits all employee groups equally, without reinforcing historical biases.
Human, AI, and Performance Evaluation
Not unlike many other sectors, the presence of AI in performance management has led many to wonder whether the technology will make humans obsolete. However, when asked if AI might replace humans, Kose replied with an empathetic “no.”
“The simple answer is no, nor should it. AI can analyse performance signals, but it cannot understand emotional context, career aspirations, personal challenges, and human growth journeys.“
“Meaningful appraisals still require empathy, reflection, and a coach-like mindset,” explained Kose. “This is why the future is AI + HI (Human Intelligence).” At her own company, she added, Amazon Q equips leaders with clarity so that human conversations can focus on understanding, motivation, and development of the elements that no algorithm can replicate.
Where AI provides consistency and accuracy, the human touch is necessary to accommodate the dynamic nature of life. Performance management tools evaluate performance through set parameters, and it is up to human employees to remember that each and every employee has their unique set of circumstances, challenges, and skills.
In the End…
As per Anushree Kose, the future of performance management in India will be built on the synergy where data empowers decisions, and empathy empowers people.
AI-powered Performance Management Systems (PMS) do indeed open a path to fairer, faster, and more personalised appraisals. They provide real-time feedback that allows for continuous improvement in skills, helping employees and companies to keep up with rapidly evolving technologies.
However, companies also need to invest in governance, transparency and manager enablement. While taking advantage of AI’s many benefits, it is important to remember that the person being evaluated is human and, as such, requires and deserves a human touch.
