Artificial Intelligence in the Workplace: Human Judgment Still Matters

By Jeanette Coleman, SPHR & SHRM-SCP on Oct 01, 2025
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Jeanette Coleman, Director of HR, discusses artificial intelligence in the workplace and the employee experience

Artificial intelligence in the workplace is no longer a futuristic concept—it’s here now, transforming how companies operate. The benefits of artificial intelligence in the workplace include automating routine tasks, streamlining HR processes and boosting efficiency. 

Still, when it comes to sensitive employee matters, the pros and cons of artificial intelligence in the workplace become clear. While AI can enhance employee experience and even support employee engagement efforts, it cannot replace the human judgment, empathy, and insight required to manage employee relations and discipline.

RELATED: How to Resolve Conflict Between Two Employees at Work >>  

The Limits of AI in Employee Experience 

Using AI can positively affect the employee experience in certain ways, such as helping to analyze workforce data trends or manage scheduling. These benefits are supplements to – not replacements for – human HR expertise. 

Only humans can create a healthy workplace culture. Making employees feel valued, as well as effectively handling discipline, conflict resolution and sensitive employee situations, requires more than data-driven approaches. 

A strong culture and employee relationships depend on trust, shared values and human leadership. When those factors are absent, employee engagement efforts fall flat, regardless of technology. 

AI in employee engagement can track participation in company programs or highlight trends in employee feedback. As we know, though, engagement is more than metrics; it’s about employees feeling heard, valued and respected.

fostering emotional intelligence in your remote workforce

Pros and Cons of Artificial Intelligence in the Workplace 

On one hand, AI can help automate repetitive HR tasks and offer self-service tools that free up workers’ time, making them more available for strategic work. The benefits of artificial intelligence in the workplace are strongest when AI is used as a supportive tool in areas such as: 

  • Offering chatbots to respond to routine HR questions. 
  • Identifying workforce trends to help HR leaders anticipate needs. 

Over-reliance on AI, however, risks replacing human wisdom with flawed automation. Artificial intelligence simply cannot handle the complexities of human behavior and interpersonal conflict that characterize employee relations. For example: 

  • Context matters

    Employee discipline is rarely black and white. What looks like misconduct in one situation might be a training issue or the result of miscommunication in another. AI systems cannot fully interpret context or intent. 
  • Discrimination can result

    Algorithms are trained on data sets that may contain hidden biases. When AI is applied to discipline or employee relations, it can unintentionally reinforce these inequities. 

    Recognizing this possibility, the Department of Labor has issued best practices to help ensure AI and other emerging technologies are developed to benefit workers. 
  • Respect is essential

    Employee evaluations and disciplinary processes must be handled with care. AI cannot respectfully evaluate employees, because that process requires empathy, listening, critical thinking and moral judgment. 
  • Trust can erode

    Employees who know companies are using AI tools to monitor, judge or discipline them may lose trust in leadership. Poorly implemented AI strategies risk damaging morale and company reputation. 

trust in the workplace

A Human-Centered Approach 

Employers should view artificial intelligence as an assistant, not an authority or decision-maker. Employees want to know employers care about them and that they’ll receive fair treatment. AI in employee experience and AI in employee engagement can provide valuable insights, but human leaders must interpret those findings and act with empathy in determining whether and how to implement them.

Culture is shaped by intentional leadership and shared values – not algorithms. 

Employers build stronger cultures and healthier workplaces when they keep people at the center of employee relations and discipline. A trusted professional employer organization (PEO) like Axcet HR Solutions helps small to mid-sized businesses accomplish these key goals every day, leveraging AI when appropriate.

Axcet provides time-saving PEO services to small business employers trying to navigate new technologies like AI in the workplace, which are no match for the PEO’s human HR experts. 

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