People and Change For enterprises

Should AI Usage Be Part of Performance Reviews?

Several companies wrote AI use into their performance reviews in 2025. During 2026, some of them stepped back from counting it. The workable position is to bring AI use into the review as a question, read beside what the role's work calls for and what the person produced, and never as a score.

Yes, as a question the manager asks and the person answers, and never as a score. Pressure to look like an AI user is already common: in a survey by Visier of 1,000 US full-time employees, published September 22, 2026, 48% said they had exaggerated their AI use or expertise to colleagues or leadership. Read beside what the role’s work calls for and what the person produced, a usage figure gives a manager a fair question to ask.

Companies have tried both answers. Shopify and Duolingo wrote AI use into their reviews in 2025, and in April 2026 Duolingo’s chief executive said the company no longer considers it. Below is who said what, and then how to raise AI use in a review without turning it into a score.

Key takeaways

  • In 2025, Shopify and Duolingo wrote AI use into their reviews. In 2026, Duolingo dropped it, and a Meta memo first reported by The Information, as relayed by CIO.com, said token counts would not be used to evaluate impact.
  • A token count measures input. It can be inflated, and vendor reports leave gaps, so in a review a count on its own is not evidence about a person.
  • The count belongs in the review as a question, read beside the share of the role’s work AI can do and what the person produced. Low use in a role suited to AI deserves the same question as heavy use with flat output.
  • Tell people in advance which figures will come up, show them their own figures before the meeting, and let them correct and explain.
  • Rules on automated decisions about pay and promotion, and on monitoring workers, may apply. This is general information, not legal advice.

What have companies said about AI use in performance reviews?

DateCompanyWhat was saidWho said it
April 2025ShopifyAI use is “a baseline expectation.” AI usage questions join the performance and peer review questionnaires.A memo by chief executive Tobi Lütke, which he posted on X, saying it was being leaked, as reported by BetaKit on April 7, 2025.
April 2025Duolingo”AI use will be part of what we evaluate in performance reviews.”A chief executive email that Duolingo posted on its LinkedIn page on April 28, 2025. Snopes confirmed the text.
June 2025Microsoft”Using AI is no longer optional,” and managers should include time spent using AI tools in performance reviews.An internal email from developer division president Julia Liuson, reported by Business Insider and relayed by Entrepreneur.
November 2025Meta”AI-driven impact” becomes a “core expectation” from 2026. Individual usage metrics stay out of 2025 reviews.A memo from head of people Janelle Gale, reported by Business Insider. The second point is Business Insider’s paraphrase of the memo.
April 2026DuolingoThe company no longer considers AI use in reviews.Chief executive Luis von Ahn on the Silicon Valley Girl podcast, reported by Entrepreneur on April 14, 2026.
May 2026AmazonStaff were reportedly told that “tokenmaxxing,” inflating token counts, would not be a factor in reviews.Financial Times reporting relayed by Fortune. Amazon did not immediately respond to Fortune.
September 2026MetaThe company “will not use AI adoption dashboards or token counts to evaluate impact.”An internal memo reported by The Information and relayed by CIO.com on September 4, 2026.
October 2026AmazonInput measures such as token use are “deeply flawed” and should be used “with care and judgement.”Published guidance by Terk Terkowitz, a vice president and distinguished engineer, on October 27, 2026.
Public statements and reports about AI use in performance reviews, with the source of each claim. Checked November 13, 2026. Source: BetaKit; Snopes; Entrepreneur; Business Insider; Fortune; CIO.com; Amazon

Three rows report a company’s own words: the Shopify memo, which its chief executive posted, the Duolingo email, which the company posted, and Amazon’s published guidance. We read the first two through BetaKit and Snopes, and Amazon’s guidance directly. Duolingo’s 2026 change came from its chief executive on a podcast. The Microsoft and Meta rows rest on internal documents that reporters saw, and the Amazon leaderboard account is Financial Times reporting that we read only as relayed by Fortune. The companies did not publish any of those four themselves.

Read in date order, the statements move toward output. The 2025 memos made AI use an expectation. The September 2026 Meta memo, as reported, tells managers to look at “output quality, velocity, problem complexity and scope taken on.” Amazon keeps its usage measures. Its guidance says they “correlate well with the outputs that matter” and that using them with care is appropriate as staff think about their careers.

Why does a token count make a poor performance score?

A token is the unit AI vendors bill by, roughly a piece of a word, so a token count measures how much AI a person used. Amazon’s guidance says such input measures are flawed “primarily because they are disconnected from what matters,” and that used “as a target instead of a measure” they could drive negative outcomes.

People respond to a count once they know it is watched. According to Financial Times reporting relayed by Fortune, Amazon employees ran an internal AI tool “on trivial tasks to inflate their token counts” and climb a leaderboard. In the Visier survey, 45% of employees said they feel pressure to use AI at work, and 48% said they had exaggerated their AI use or expertise. A score built on the count rewards both behaviors.

The count also has gaps that have nothing to do with the person. Microsoft’s per-user Copilot usage report lists the date each user was last active in each app and has no token field, so it cannot give a token count for a person who works mainly in Microsoft 365 Copilot. Anthropic’s analytics documentation gives per-user token usage and cost on usage-based Enterprise plans and only usage credits on seat-based plans. It does not return Claude Code used through Amazon Bedrock, and with customer-managed encryption keys some Claude Code and Cowork activity figures, such as lines of code and commits, “can be zero or lower than actual use.” A low number can be a gap in the report.

The same count means different things in different roles. A software developer and a field inspector will not use the same amount of AI, and the gap says nothing about either one’s effort. Amazon’s guidance makes the point from the employee’s side: when a person’s work does not benefit from current AI tools, it calls that “a finding, not a failing.”

How should AI use come into a performance review?

The count comes into the review as a question, with the figures that give it meaning. The manager brings the role’s figures: how much of the role’s work AI can do, judged task by task, what the team used and what the team produced. Beside them sits the person’s own usage from the company’s AI tools. When that usage is far from what the role’s work calls for and the person’s output has not moved, the manager asks why and the person answers.

The question runs in both directions. Heavy use with flat output prompts a question about what the AI was used for. Low use in a role where much of the work suits AI deserves the same question, and the answer is often practical, such as missing access to a suitable tool or missing training. Sometimes the person’s share of the work is the part current tools do not suit, which is the case Amazon’s guidance calls “a finding, not a failing.”

What follows from the answer is an action, such as training or a different tool, or a note that the work does not call for more AI. The rating itself rests on the work the person produced, judged by the standard the role already uses. A person makes the decision.

JobRoute supplies the role’s figures: the share of the role’s work AI can do, the team’s use and the team’s output, as described on AI spend by role. The company holds each person’s usage in its own AI tools, and JobRoute does not score or rank people.

What should employees be told and shown?

The question is only fair if the person has seen the figures first.

  1. Before the review cycle, tell people in writing that AI use will come up as a question, which tools the figures come from, that the role’s figures are reported for groups, and that nobody is scored or ranked on usage.
  2. Before the meeting, show each person their own usage as the company’s tools record it, beside the role’s figures.
  3. Let them correct it. Leave, shared projects, a tool that reports only activity and a different mix of work all change what a count means.
  4. In the meeting, ask the question, and write down the answer and what follows from it, such as training or access to a tool.
  5. Offer a second look by someone with the authority to change the outcome.

Which rules may apply to AI usage data in reviews?

The rules tend to turn on two things: whether a system monitors or evaluates individual workers, and whether its output decides or substantially shapes pay, promotion or discipline. Some turn the steps above, such as notice before use, into duties. Four that bear on reviews:

  • European Union. The AI Act lists AI systems intended to be used “to monitor and evaluate the performance and behaviour” of workers among the high-risk uses in Annex III, point 4(b). The EU’s political agreement of May 2026 set December 2, 2027 as the date the rules for high-risk systems in employment apply, and the Council gave final approval in June. Article 26(7) then requires employers to inform workers’ representatives and the affected workers before using such a system.
  • Germany. Section 87(1) number 6 of the Works Constitution Act gives the works council a right of co-determination over the introduction and use of technical systems designed to monitor employees’ behavior or performance, where no statute or collective agreement already settles the matter.
  • California. The privacy agency’s regulations cover technology that replaces or substantially replaces human decisionmaking in significant decisions, which include pay, bonuses, promotion and demotion. Under section 7001(e), human involvement means a reviewer who knows how to interpret the output, weighs other relevant information and has the authority to change the decision. A business already using such technology must meet these rules by January 1, 2027 (section 7200(b)), and section 7150(b)(4) requires a risk assessment for automated processing used to infer an employee’s performance at work from systematic observation.
  • Colorado. SB 26-189 covers technology whose scores or rankings materially influence a decision about an individual, including compensation in employment, and its definitions include employees. For decisions from January 1, 2027, the deployer must give notice and, after an adverse outcome, an explanation within 30 days. The person can request meaningful human review and the correction of factually incorrect personal data.

Our AI and employment compliance calendar lists these and other rules with dates, including Illinois and New York, and our paper on measuring AI use without monitoring individuals covers each in more depth. This is general information, not legal advice.

Sources and further reading

  1. AI in the Workplace: New Research on Performative AI (September 22, 2026: survey of 1,000 US full-time employees; 45% feel pressure to use AI at work; 48% have exaggerated their AI usage or expertise at least some of the time) Visier, 2026
  2. BetaKit report on Tobi Lütke's memo to Shopify staff (April 7, 2025: memo dated March 20, posted by Lütke on X; AI use 'a baseline expectation'; AI usage questions added to performance and peer review questionnaires) BetaKit, 2025
  3. Duolingo post of an all-hands email from its chief executive (April 28, 2025: Duolingo is going 'AI-first') Duolingo, on LinkedIn, 2025
  4. Fact Check: Duolingo said it would become 'AI-first' and that it plans to replace contractors (May 6, 2025: confirms the email Duolingo posted on LinkedIn on April 28, 2025, including 'AI use will be part of what we evaluate in performance reviews') Snopes, republished by Yahoo News, 2025
  5. 'No Longer Optional': Microsoft Staff Mandated to Use AI at Work, According to a New Report (June 27, 2025: relays Business Insider's account of an email from Julia Liuson, president of Microsoft's developer division) Entrepreneur, 2025
  6. Meta is about to start grading workers on their AI skills (November 14, 2025: memo from head of people Janelle Gale; 'AI-driven impact' a 'core expectation' from 2026; individual usage metrics not in 2025 reviews, in Business Insider's paraphrase of the memo) Business Insider, republished by Yahoo Finance, 2025
  7. Entrepreneur report on Duolingo's change to performance reviews (April 14, 2026: Luis von Ahn on the Silicon Valley Girl podcast; AI use no longer considered in reviews) Entrepreneur, 2026
  8. Fortune on Amazon and tokenmaxxing (May 12, 2026: relays Financial Times reporting that employees ran an AI tool on trivial tasks to inflate token counts, and that staff were reportedly told tokenmaxxing would not be a factor in performance reviews; Amazon did not immediately respond) Fortune, 2026
  9. Meta minimizes role of token maxing in employee evaluations (September 4, 2026: relays an internal memo first reported by The Information; 'will not use AI adoption dashboards or token counts to evaluate impact') CIO.com (first published by InfoWorld), 2026
  10. An update from Amazon engineering leadership on the role of the developer in the age of AI, by Terk Terkowitz (October 27, 2026: input metrics 'deeply flawed'; 'correlate well with the outputs that matter'; 'with care and judgement'; 'a finding, not a failing') Amazon, 2026
  11. reportRoot: getMicrosoft365CopilotUsageUserDetail (per-user last activity date for each Copilot app; no token field) Microsoft Learn, 2026
  12. Analytics APIs (Claude Enterprise Analytics API: per-user token usage and cost on usage-based Enterprise plans, usage credits only on seat-based plans; Claude Code through Amazon Bedrock not returned; with customer-managed encryption keys some Claude Code and Cowork activity figures 'can be zero or lower than actual use') Anthropic, Claude Platform documentation, 2026
  13. EU Artificial Intelligence Act, Annex III, point 4(b): AI systems intended to be used 'to monitor and evaluate the performance and behaviour of persons' in work relationships (unofficial consolidated text) Future of Life Institute, EU AI Act Explorer, 2024
  14. EU Artificial Intelligence Act, Article 26(7): employers inform workers' representatives and affected workers before using a high-risk AI system at the workplace (unofficial consolidated text) Future of Life Institute, EU AI Act Explorer, 2024
  15. European Commission news release on the political agreement to simplify the AI rules (May 7, 2026: rules for high-risk systems in areas including employment apply from December 2, 2027) European Commission, 2026
  16. Artificial Intelligence: Council gives final green light to simplify and streamline rules (June 30, 2026: new date of December 2, 2027 for stand-alone high-risk AI systems) Council of the European Union, as published by the EU Delegation to Chile, 2026
  17. Works Constitution Act (Betriebsverfassungsgesetz), section 87(1) number 6: co-determination on technical systems designed to monitor employee behavior or performance German Federal Ministry of Justice, Gesetze im Internet, 2026
  18. Text of Regulations (CCPA Updates, Cyber, Risk, ADMT, and Insurance Regulations): sections 7001(e), 7001(ddd)(4), 7150(b)(4), 7200(b) and 7220 California Privacy Protection Agency, 2026
  19. SB26-189, Automated Decision-Making Technology (signed May 14, 2026; signed act: ADMT includes scores and rankings used to guide a decision about an individual; consumer includes an employee; takes effect and applies to decisions from January 1, 2027) Colorado General Assembly, 2026

Frequently asked questions

Should AI usage be part of a performance review?

Yes, as a question the manager asks and the person answers, and never as a score. The manager reads the person's usage beside what the role's work calls for and what the person produced. When usage is far from what the role needs and output has not moved, the manager asks why. Heavy use with flat output and low use in a role suited to AI both deserve that question. A person makes the decision.

Can a token count be used to rate an employee?

It should not be. A token is the unit AI vendors bill by, roughly a piece of a word, so a count measures input. Amazon employees reportedly ran an AI tool on trivial tasks to raise their counts, and in a Visier survey of 1,000 US full-time employees published September 22, 2026, 48% said they had exaggerated their AI use or expertise. Vendor reports also have gaps. In a review, a count on its own is not evidence about a person.

What have companies said about AI use in performance reviews?

In 2025, Shopify's chief executive said AI usage questions would join performance and peer reviews, and Duolingo said AI use would be part of what it evaluates. In April 2026, Duolingo's chief executive said the company no longer considers AI use in reviews. A Meta memo reported in September 2026 said token counts would not be used to evaluate impact. Amazon's October 2026 guidance called input measures such as token use deeply flawed.

What should employees be told before AI use comes up in their review?

Tell them in writing, before the review cycle, that AI use will come up as a question, which tools the figures come from and that nobody is scored or ranked on usage. Before the meeting, show each person their own usage beside the role's figures and let them correct it. Afterward, give them a way to ask for a second look by someone with authority to change the outcome.

Which laws apply to using AI usage data in performance reviews?

It depends on where the company operates and how the data is used. The EU AI Act lists AI systems intended to monitor and evaluate workers' performance among its high-risk uses, with rules applying from December 2, 2027 under the timetable agreed in 2026. California's privacy regulations cover technology that replaces or substantially replaces human decisions on pay and promotion. Colorado's SB 26-189 covers scores and rankings that materially influence employment decisions from January 1, 2027. This is general information, not legal advice.

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