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According to Resume Now’s AI in Pay Report, more than half of American workers say AI plays a much bigger role in compensation decisions than it did just three years ago, and nearly two-thirds expect that influence to grow significantly over the next five.
This rising presence of AI in compensation is gaining trust: 68% of workers believe AI makes pay decisions fairer, and the same percentage say they’d trust those decisions more if AI were involved.Â
This optimism, however, hinges on one major condition: strong oversight. A staggering 94% of workers want independent third-party reviews of pay algorithms before fully buying into AI-driven compensation.
From Fringe Tech to Frontline Role
Three years ago, AI’s role in pay decisions was minor for most. Today, 56% say it’s “much larger,” and another 38% say it’s slightly larger. Looking ahead, 63% expect AI’s role to expand significantly, and only 3% think it will stay the same.
This may mean AI could soon influence whether workers get raises or bonuses, and how much. While job automation often sparks anxiety, AI’s role in compensation is being viewed more as a tool for improving fairness than a threat.
Cautious Optimism Rooted in Transparency
Workers remain cautiously optimistic. Many see AI as a way to reduce unconscious bias, enforce consistency, and add objectivity to pay decisions. In fact, 93% say they support AI if it eliminates bias, and 68% believe it can enhance fairness.
Still, concerns remain:
- 65% worry about algorithmic bias
- 54% cite a lack of transparency
- 45% fear the loss of human judgment
- Only 2% say they have no concerns at all
It’s clear what employees want: documented processes, transparent pay bands, explainable model logic, and the option to escalate decisions to a human. These safeguards not only improve trust but also help workers advocate for themselves with data — keeping detailed records of achievements, role changes, and measurable outcomes.
Striking a Balance
The path forward seems to be collaboration between AI and human judgment. Algorithms can analyze data at scale, but they often miss context — like stretch assignments, evolving responsibilities, or unique contributions. That’s where regular check-ins and human oversight play a critical role.
As AI takes a firmer hold in HR functions, companies have a choice: deploy it transparently with strong checks and balances or risk eroding trust in one of the most personal areas of the workplace — how people are paid.
