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Your next performance review is about you know what

Companies are scrambling to figure out how to grade employees' AI use in performance reviews.

Performance reviews are now incorporating a focus on how employees utilize artificial intelligence (AI), according to recent reports. Companies across various industries are grappling with how to evaluate employees' AI proficiency and its impact on their work. Gusto, a human resources platform, has implemented a grading system based on five AI archetypes: observers, integrators, and amplifiers, among others. This move aims to standardize AI implementation and enable coaching conversations.

However, the introduction of AI grading has faced backlash. Companies like Amazon, Uber, and Meta have abandoned similar initiatives due to concerns over fairness and the subjective nature of AI performance. Critics argue that rewarding AI use without clear benchmarks is unfair and that success with the technology remains rare and subjective.

Some companies, such as Typeform and Duolingo, have opted for more focused approaches. Typeform's vice president of engineering asks engineers how much faster they can complete tasks using AI, while Duolingo's CEO evaluates employees based on the quality and impact of AI use.

Large companies like Meta and Accenture have also begun incorporating AI-driven impact into performance reviews, though these evaluations remain experimental. The goal is to foster organic adoption of AI in the workplace, rather than forcing a one-size-fits-all approach. As companies continue to explore the potential of AI, they face the challenge of balancing innovation with fairness and practicality in performance evaluations.

Written by urgent.news from Business Insider's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.

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