Survey: 44% of Managers Enter Employee Data Into Public AI Tools With No Formal Policy in Place

A survey by The Predictive Index (PI) of 399 managers and 208 CEOs and business leaders finds that nearly three in four managers (72%) consider public AI tools useful for preparing for difficult workplace conversations, such as performance reviews and terminations. More than four in ten (44%) said they had entered employee names and performance details directly into public AI platforms.

Released August 21, 2026, the survey found that only 45% of organizations have a formal written policy for AI use in performance management, a gap that exists even as leaders report concern about sensitive employee information entering external AI systems.

Only one in five managers said they preferred to prepare for difficult conversations on their own, without a framework, coaching guide, or input from HR. Managers reported struggling most with three tasks: delivering constructive criticism, anticipating how employees will react, and staying objective during the process.

Anthony Belluccia, an I/O psychologist at PI, noted in a statement that organizational trust in managers does not equate to readiness for difficult conversations. "Trusting a manager and knowing they're set up for a specific hard conversation are two different things," he said. "Managers are more aware of where they need support than their leaders are."

Separate research from WTW found that only one in five organizations say their managers effectively provide feedback.

Experts have previously cautioned employers about two risks from using AI in performance management: the amplification of existing biases in AI-assisted evaluations, and legal ramifications from using AI tools in employment decisions.

Key takeaways:

• 72% of managers say public AI tools help them prepare for difficult conversations; 44% have entered employee names and performance data into those platforms
• Only 45% of organizations have a formal AI policy for performance management
• Managers struggle most with: constructive criticism, anticipating reactions, and staying objective
• Only 20% of managers prefer preparing for hard conversations alone, without support
• Experts flag risks: AI bias in evaluations and legal liability in employment decisions
• Policy gap is widening as manager AI adoption outpaces formal governance

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