UAE Firms Use AI To Decide Promotions And Layoffs, Says New Report

(MENAFN- Khaleej Times) Artificial intelligence (AI) is increasingly being used to make some of the most sensitive workplace decisions in the UAE, with employers deploying AI not only to support recruitment but also to help determine which employees get promoted and which are dismissed, according to new research by HireRight.

The YouGov survey, commissioned by the global background screening and workforce solutions provider, found that 42 per cent of UAE employers use AI to support promotion decisions – the highest percentage among all markets surveyed – while 31 per cent use AI tools to assist with employee termination decisions. Only 14 per cent of respondents said their organisations do not currently use AI in any HR function.

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While AI is playing a growing role in HR decision-making, employers appear to be taking a balanced view of candidates using the technology during recruitment.

The survey found that 67 per cent of HR decision-makers in the UAE are confident in identifying AI-assisted CVs and job applications, while 44 per cent view candidates' use of AI positively and another 44 per cent hold a neutral opinion. Only 7 per cent said they viewed the use of AI negatively.

James Randall, Middle East Sales Director at HireRight, said the findings suggest employers are becoming less concerned about whether candidates use AI and more focused on verifying their authenticity and suitability for the role.

"The research shows that many UAE HR leaders are adopting a pragmatic stance on candidates' use of generative AI tools. The focus is shifting from whether candidates use AI to how organizations assess their authenticity and suitability for the role, something that robust background screening can support," he said.

Identity fraud

The report also highlighted rising concerns over identity fraud in the recruitment process.

Nearly 63 per cent of HR and recruitment leaders in the UAE said they uncovered identity fraud among candidates or employees during 2025 – one of the highest rates recorded across the markets surveyed. Of those who detected fraud, 30 per cent identified it during recruitment, 29 per cent through employee rescreening or monitoring, while 40 per cent only discovered it after fraudulent activity or theft had already occurred.

When selecting a background screening provider, UAE employers ranked accuracy and quality of results as their top priority (41 per cent), followed by candidate experience (36 per cent) and speed (36 per cent). Screening is increasingly being used to identify behaviors that conflict with corporate values, protect company reputations and strengthen workplace security.

Biggest challenges

The research also highlighted growing recruitment challenges across the UAE.

Around 32 per cent of employers said finding qualified candidates remains their biggest hiring challenge, while an equal proportion cited the large volume of job applications. Nearly 31 per cent said meeting salary and benefits expectations was becoming increasingly difficult.

Employers are also facing rising hiring costs. Nearly one-third reported higher-than-expected employee resignations during 2025, while 30 per cent experienced increased turnover among new hires, 28 per cent reported higher recruitment costs and 27 per cent said vacancies remained unfilled for between three and six months.

Randall said the UAE continues to attract talent from around the world, but organizations must balance technology with sound hiring judgment.

"In a market where hiring costs are rising, fraud is more prevalent than the global average and AI is reshaping how workforce decisions are made, organizations that will succeed are those combining rigorous screening, human judgment and smart use of technology," he said.

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