AI: Pay Checker or Panicker?

So, AI now sets your pay and spooks your job at breakfast.

A report shows AI tools are benchmarking salaries. This is useful. But they OBVIOUSLY trip up when context matters—London vs Leeds, say. And yes, we still need humans to check bias.

Meanwhile, CEOs are warning staff “adapt or leave” and this will kill morale. As you should know, fear doesn’t inspire learning—it triggers yawning or people leaving. Real change needs nuance.

Here’s a scenario: you run AI pay tools, but pair them with info sessions, open debates and a chance for staff to question results. You roll out AI deeply—but back it with training, not threats.

Thing is, AI can save time. But only if used with care. Leave it unchecked, and you get odd pay bands or anxious teams or the part-time office assistant is on the same pay grade as your Global Marketing Director

So, your move. Deploy the tool—or the tactic? Or both—with a human layer.

Let me know how you’ll strike the balance.

1. Disrupted or displaced? How AI is shaking up jobs

AI and robotics are significantly reshaping work. Ocado slashed staff thanks to automation, while firms like Schroders and Moderna use AI to boost productivity rather than cut jobs. A report warns that many roles will be redesigned, not eliminated, and AI-skilled workers now command higher pay. A growing skills gap risks leaving some behind.

What this means: You must invest in reskilling. Treat AI as a role-changer, not a replacer—and be ready to support those in transition.

2. AI can sharpen pay decisions—from data

Korn Ferry finds 22 per cent of firms use AI tools to benchmark salaries; another 63 per cent are considering them. Tools like Payscale’s Verse analyse market data to guide pay decisions for niche roles. They speed up benchmarking and can improve transparency—if experts still double-check for bias or errors.

What this means: AI can lift mundane HR work and speed pay decisions. Still, human oversight must stay in play.

3. Why CEOs are using AI to scare workers

CEOs at Amazon and others now warn staff that failure to adapt to AI could cost them roles. The tactic aims to spur AI adoption and signal to investors. Experts say fear-based messaging may backfire—hurting morale and hindering genuine change.

What this means: Tone matters. If you push AI with threats, people push back. Better to lean into support and clarity.