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Companies are using AI tools to help with performance reviews and wellbeing, but experts warn workers may feel watched if data is misused.
In short: More employers are using AI tools to coach and check in on employees, but they are trying to avoid making people feel monitored.
Merck, a US drug company, is giving about 5,000 employees early access to an AI coaching tool called Nadia from Valence. Merck is encouraging staff to use it to prepare for year-end performance reviews. The company says the tool can help people find the right words and show empathy during high-stakes conversations.
This is part of a wider shift. Employers are starting to use AI for more than writing emails or summarizing meetings. Some companies use AI-powered engagement surveys that quickly spot themes in employee feedback, like stress levels or morale, which used to take weeks to analyze.
Other tools gather information about an employee’s work to make performance reviews easier. AI coaching tools can also guide managers through tricky situations, like giving feedback, or help employees practice asking for a pay rise. Valence’s CEO said some people find it easier to talk to AI because it feels less judgmental.
Experts and tool makers say there is a fine line between support and surveillance. If workers think the tools are being used to identify “problem employees,” they may stop being honest. Analysts also warn that AI can miss human cues, like body language, and that companies need clear rules on who can access the data and how it will be used.
Source: Financial Times