The Integration of AI in Performance Appraisal

Integrating artificial intelligence into human resource management practices, particularly in performance appraisal, transforms how organisations evaluate and manage employee performance. AI-driven systems offer enhanced accuracy and efficiency through continuous data collection and analysis. Yet, human judgement remains indispensable in capturing the nuances of employee behaviour, interpersonal dynamics, and organisational culture. This chapter explores the balance between AI-driven automation and human oversight in performance appraisal, emphasising the need for a hybrid model that leverages both strengths. This chapter examines AI's role in performance management, focusing on its advantages and limitations. It also offers a conceptual model to integrate artificial intelligence with human judgment. This framework highlights the critical role of human judgment, ensuring that AI enhances rather than supplants human decision-making processes. By leveraging the complementary strengths of AI and human insight, organisations can develop equitable and efficient evaluation systems.