In this new episode of The People Agenda podcast, host Chris Howard and performance management expert Debbie Mitchell sit down with Amira Kohler, AI Change Consultant and Transformation Expert at People Stuff Limited, to explore how AI is transforming performance management.
From turning data into real-time insights that help managers prepare, coach, and evaluate more effectively, to analysing feedback and development goals in seconds, AI is changing the way we manage and develop people. Real success depends on balance because even the smartest algorithms can’t replace human judgement. If you’re finding it challenging to strike the right balance, we have developed the TRUSTED framework to help you achieve it.
What are the main benefits of AI in performance management?
Listen to the podcast to hear Amira and Debbie discuss the benefits including:
- Preparation: Line managers can receive instant summaries of an employee’s progress based on KPIs, feedback, and customer data.
- Decision-making: Algorithms can remove recency bias by showing long-term patterns rather than relying on recent memory.
- Coaching: AI can suggest development goals or offer prompts to guide feedback discussions.
The outcome? A manager using AI can prepare for a check-in conversation in under two minutes, compared to 30–60 minutes manually, creating more time for meaningful dialogue.
What risks should organisations watch out for?
Our guests unpacked a series of key risks of using AI in performance management including:
- Data gaps: AI can only draw conclusions from the data it has. Limited inputs may lead to inaccurate answers.
- Trust gaps: Senior leaders may embrace AI faster than employees, leading to fear or resistance.
- Over-automation: Managers may treat AI’s suggestions as facts, weakening critical thinking and human judgement.
What role should HR play in AI adoption?
Our guest underlined how HR must bridge technology and people. How can HR achieve this?
- Educate leaders and staff on responsible AI use.
- Maintain transparency about what data AI accesses and how it’s used.
- Keep performance conversations human-centred, focusing on values, ethics, and employee trust.
Amira explains, AI is not a technical shift, it’s a people change. HR’s influence ensures that AI supports, not replaces, meaningful management.
Can AI really act as a coach?
Yes, but with limitations. AI is giving everyone the chance to get real-time feedback, prompts for reflection, and even practice tricky scenarios before a big conversation. But while that’s powerful, it’s not perfect. Emotional nuance still matters. AI can help you think differently, but it can’t fully grasp the human context behind every situation.
What is agentic AI and why does it matter?
Agentic AI goes beyond analysis. It can plan, act, and complete tasks without human input. For example, sending onboarding emails or chasing compliance forms automatically. While this removes repetitive admin, it also raises questions about job design and human oversight. Future HR teams will need to redefine which “human touches” remain essential or as Gartner suggests we may develop guidelines around the minimum human intervention required for AI use in organisations.
