Adoption of an AI-Based HR Tool in Annual Performance Reviews: The Role of Gains and Losses for Trust

The study examines how managers in an IT company integrate an AI-based HR tool for the preparation of annual performance reviews into their leadership practices. The aim of the study is to analyze the influence of motivational drivers (gains and losses) and individual risk propensity on trust in the AI-based HR tool as well as on actual and intended use of the tool. The study is based on the model Motivated Trust in AI in HRM (Hertel et al., 2025), which describes how cognitive and motivational processes influence trust and trust-related behaviors toward AI systems in human resource management. Building on this approach, the study investigates relationships between expected and perceived gains and losses, risk propensity toward the AI-based HR tool, trust in the AI-based HR tool, and managers’ future intention to use the AI-based HR tool for preparing annual performance reviews. In addition, the relationship between general trust propensity toward AI systems and trust in the AI-based HR tool is examined. Data are collected as part of a field study conducted after the preparation of annual performance reviews. The results are intended to contribute both to scientific research on trust in AI and to the user-centered development of AI-based HR tools. Reference model: Hertel, G., Fisher, S. L., & Van Fossen, J. A. (2025). Motivated Trust in AI: An integrative model considering multiple stakeholder views in HRM. In B. Murray, J. H. Dulebohn, D. L. Stone, & K. M. S. Lukaszewski (Eds.), The Future of Human Resource Management (pp. 123–161). Emerald Publishing Limited. https://doi.org/10.1108/979-8-88730-816-620251005