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Artificial intelligence is quickly becoming embedded in how work gets done — and it’s only going to become more pervasive. Employees are already using AI to write emails, summarize data and automate routine tasks. But that’s just the beginning.
The real impact happens when AI shifts from being a tool of efficiency to a catalyst for innovation. To unlock that potential, organizations must build something foundational: AI fluency — the ability for employees to understand, trust and confidently apply AI in their roles.
What many organizations haven’t yet realized is the growing gap between AI-savvy power users and everyone else. According to Betterworks’ 2025 State of Performance Enablement report, eight in 10 high-performing employees — many of whom are AI superusers — are already job hunting. Meanwhile, AI laggards — employees who use AI infrequently or not at all — are far less concerned about upskilling, and more likely to stay.
Without AI fluency embedded across your workforce, your ability to attract and retain top talent and stay competitive will erode.
The solution? Build an AI-supportive culture — one that sees AI not as a job stealer but as a productivity enhancer, a creativity booster and a strategic co-pilot. The challenge? Most employees and even many organizations aren’t there yet.
Let’s look at why AI fluency is a game-changer and how AI-enabled performance management can accelerate it.
Why AI Fluency Is a Competitive Advantage
Despite the hype, AI’s potential is still under-leveraged. The Betterworks report found that while nearly 70% of AI users rely on it for routine tasks and about half for operations, only 46% apply it to strategic functions — and just 22% use it for decision-making.
Yet those who use AI more deeply are reaping the rewards:
- 65% say it helps them work faster
- 49% report improved quality
- 48% see enhanced accuracy
- 46% say it boosts creativity
Still, 93% of frequent AI users believe they’ve only scratched the surface. AI can reduce repetitive tasks, support faster decision-making, and open up room for strategy and innovation, but only if it’s embedded into daily work and not treated as a one-off experiment.
It’s about making AI a natural part of people's daily work. That means building fluency through consistent, real-world experimentation and usage — not just training modules and lunch-and-learns.
Bridging the AI Fluency Gap With Performance Management
Some employees fear or resist AI, while others just don’t know how to use it effectively. The difference often comes down to psychological safety, access and support.
Betterworks’ report found that 90% of employees with effective AI tools feel positive about AI, while 83% without them feel negative or disengaged. Still, many employees are taking the initiative: 78% are already using “bring your own AI” tools at work, according to the 2024 Work Trends report from Microsoft and LinkedIn.
Employees are clearly willing to experiment. What they need is structure, support and clear use cases. Performance management can help here.
AI-Enabled Performance Management: A Path to Fluency
Performance management touches every employee and manager, yet many people dread it. Annual reviews feel outdated, disconnected and often unfair. Only a third of employees say reviews help them improve; two-thirds say they’re a waste of time.
AI can change that.
Betterworks brings AI into every layer of the performance enablement process, turning it into a continuous, transparent and empowering experience. Here’s how:
1. Better Goals, Faster Alignment
Using Betterworks Goal Assist, employees can quickly set goals aligned with team and company objectives, using performance data to suggest and refine targets. It’s not just time-saving; it helps employees understand how to use AI to turn information into action.
2. Smarter Conversations
Performance conversations should be about coaching, not just ratings. Betterworks’ Conversation Assist tool uses employee goals, feedback and recognition data to generate insights and prompts for managers. This builds employee trust in AI and strengthens manager-employee relationships guiding meaningful development conversations.
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3. Fair, Comprehensive Feedback
Betterworks Feedback Summary consolidates data across multiple sources, creating a more complete and objective picture of performance while also eliminating recency and unconscious bias. Employees get actionable insights; managers get time back. Everyone gets fair and comprehensive evaluations.
4. Clearer Career Growth
Employees disengage when they don’t see a path forward. Managers and employees can use the AI features in the Betterworks platform to uncover and assess skills to help identify growth opportunities, roles and next steps — making the value of AI real and personal.
Why Employees Want AI in Performance Reviews
Contrary to popular belief, employees don’t fear AI in performance management. They often prefer it:
- 43% say AI is more accurate than their manager
- 40% believe AI is fairer
- 39% say it provides more thorough feedback
- 35% feel it’s more personal
The result: 89% of employees and managers using AI-enabled performance management are highly satisfied, compared with just 40% of employees without it.
When performance processes feel fair and helpful, engagement, productivity and retention all improve. AI also frees managers to focus on coaching and strategy instead of paperwork, creating space for stronger teams and better business outcomes.
Start Where It Matters
AI fluency doesn’t require a massive transformation. It starts in the places where work already happens — like check-ins, goal-setting and feedback. When employees interact with AI in these day-to-day workflows, they build confidence, curiosity and competence.
That’s how organizations move from hesitation to innovation, from “What is AI?” to “How can AI help me grow?”
Betterworks doesn’t just improve performance management — it helps organizations build a workforce that’s ready to thrive in an AI-powered world.
Ready to enable AI fluency through performance? You can register for our webinar, “HR’s AI Advantage: Driving Workforce Transformation for Better Business Results,” on April 16 at 10 am PDT/1 PM EDT to learn how.
