The State of AI in Performance Management Report

HR leaders are exploring how AI will reshape performance management.
But most organizations are still early in figuring out how it fits.
This report reveals
  • Where AI is already showing up in performance workflows
  • Where leaders are proceeding cautiously
  • What HR actually wants AI to improve

AI in performance is happening.
Just not the way people expect.

Signal 01
56%

AI is not officially embedded in their performance process

More than half of organizations say AI hasn't been formally integrated into how they manage performance.

Signal 02
33%

Managers are already using AI on their own

One in three managers is independently using AI tools — without official guidance or governance.

Signal 03
77%

AI-generated performance insights would be valuable

The vast majority of respondents see clear value in AI surfacing insights to support better performance decisions.

Who this research represents

Respondent Roles
CHRO / CPO
33%
VP HR / Head of People
26%
Talent / Performance Leaders
20%
HRBP
11%
Other HR Leadership
10%

Most responses come from senior HR leaders responsible for performance strategy and talent decisions.

Organization Size
200–499
47%
500–999
31%
1,000–4,999
14%
5,000+
8%

The majority of respondents represent mid-to-large organizations where performance processes directly influence growth, promotion, and compensation.

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See where AI in performance is actually headed

Real data from 200+ HR leaders on adoption, perception, and readiness. So you can lead the shift, not react to it.

Adoption gaps
Manager sentiment
AI readiness
What's next

Download the Report

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Sarika Lamont
Chief People Officer, Vidyard
Most platforms only record the past. Klaar is built for what’s next - its AI predicts outcomes, guides fair calibrations, and frees HR from manual work. It turns performance from admin overhead into a growth lever.

Time to Perform Wonders

Time to
Gain a unified view of performance. Create equitable reviews in seconds. Weave brilliant insights into every working day. It’s time to make performance management your biggest driver of success – with Klaar.

More on Klaar’s frequently asked questions page about our system and processes.