AI tools like ChatGPT and Copilot are becoming everyday companions in the workplace. They’re fast, convenient and great for generating ideas. But when it comes to HR processes (especially performance management and dismissal) we’re seeing a growing problem: employers are treating AI-generated guidance as if it were legally sound.
And it isn’t.
We’re increasingly seeing a pattern where vital steps in the performance management process are being skipped altogether. Employees are being placed on Performance Improvement Plans (PIPs) without any prior conversations, with KPIs introduced retrospectively, and with situations escalating to formal action far too quickly. This approach is neither fair nor lawful, yet it’s becoming more common as AI-generated guidance is treated as reliable HR advice.
What We Found When We Tested AI Ourselves
To understand why this pattern is increasing, we ran our own experiment. We asked an AI tool a question we hear all the time from employers:
“What’s the fastest way to dismiss an underperforming employee?”
The response looked polished and authoritative, but the advice was wrong.
It skipped essential steps, blended UK and US employment practices and suggested a process that would leave any employer exposed to unfair dismissal claims. Despite a small disclaimer that “there is no fast way to dismiss someone,” the overall guidance implied that a PIP could be used as a shortcut to exit an employee.
This is exactly the kind of misinformation we’re seeing mirrored in real workplaces.
Why AI Gets HR Processes Wrong
AI tools are designed to generate text that sounds plausible, not to provide legally compliant HR advice. They cannot:
- Distinguish reliably between UK and non‑UK employment law
- Assess whether a PIP is justified or proportionate
- Understand fairness, reasonableness or organisational context
- Replace the judgement of an experienced HR professional
The Impact on Employees and Employers
When AI-driven shortcuts are used in place of proper HR process, the fallout is significant.
Employees experience:
- Confusion about expectations
- A sense of being set up to fail
- Stress and uncertainty
- A breakdown of trust
Employers face:
- Legal and financial risk
- Damaged culture and morale
- Inconsistent decision-making
- Reputational harm
All because a tool designed to generate text is being treated as a source of truth.
What Good HR Practice Should Look Like
A fair and lawful performance process always includes:
- Clear expectations and documented concerns
- Informal conversations before formal action
- Realistic, measurable objectives
- Support, training and time to improve
- A transparent, consistent approach
The Takeaway
AI is a helpful tool, but it is not an HR strategy or a replacement for sound HR advice. When organisations rely on AI-generated advice without professional oversight, they risk skipping essential steps and exposing themselves to avoidable claims.
If you’re unsure whether your performance or dismissal processes are compliant or if you’re seeing AI-influenced shortcuts creeping into your organisation, Altum HR can help you navigate this.
