Artificial intelligence (AI) has stormed into talent management processes. From hiring to performance evaluation, algorithms promise faster, more objective, and more efficient decisions. However, their growing role in workplace decision-making—especially in automated or “algorithmically justified” layoffs—raises serious ethical and legal concerns in human resources and tech consulting.
Automation That Decides Career Futures
More and more companies are adopting AI-based systems to assess employee productivity, performance, or overall fit. These models, powered by internal data—such as the number of emails sent, participation in meetings, or goal completion—can generate reports that directly influence decisions about promotions, restructuring, and even terminations.
According to a report published by Cinco Días (El País) in October 2025, some companies have started justifying staff dismissals using automated reports that link poor performance or lack of cultural fit to termination decisions. In many cases, these systems operate without prior human review, calling into question the transparency and traceability of such decisions.
Legal and Ethical Risks
The use of AI in termination processes conflicts with the European Union’s Artificial Intelligence Act (AI Act), approved in 2025, which bans automated decisions affecting fundamental rights without effective human oversight. Additionally, Spain’s Workers’ Statute requires a justified and verifiable reason for ending an employment contract—something hard to prove when the decision comes from a black-box algorithm.
Labor law experts warn that these systems can reproduce preexisting biases, amplifying inequalities based on gender, age, or nationality. They also highlight a governance problem: many companies can’t explain why the AI made a specific decision, which could violate the employee’s right to information.
The Role of Consultants and HR
Tech and HR consulting firms now face the challenge of implementing responsible, auditable AI systems. Some are already developing “algorithmic governance” protocols to ensure data traceability and human involvement in critical processes. This approach aims to balance operational efficiency with business ethics, reinforcing trust in technology.
A new specialty is also emerging: algorithm auditing. Its goal is to verify that the AI tools companies use comply with principles of transparency, fairness, and explainability. Though still in its early stages, this practice will be key to preventing lawsuits and protecting corporate reputation.
A Future That Demands Balance
Automation can enhance talent management, but handing over decisions as sensitive as firing someone to an algorithm is a risk organizations shouldn’t take without oversight. AI should be a support tool—not a replacement for human judgment.
Only an ethical, transparent, and well-regulated approach will allow this technology to become an ally—rather than a threat—to the future of work.
