This article addresses the renewed organisational interest in performance management and the emerging role of artificial intelligence in modernising the process. The authors — WTW consultants Charlotte Wheeler and Tom Hellier — argue that performance management's perennial ineffectiveness stems primarily from manager capability and process inconsistency rather than flawed process design, and that AI now offers a meaningful path to improvement. Key evidence includes WTW's proprietary HPEX (High Performing Employee Experience) research, which associates clear goal-setting and performance management practices with higher engagement, customer satisfaction, and financial performance. The authors point to specific AI applications: generative AI for goal suggestion, AI-driven nudges for KPI tracking, and AI-assisted calibration to focus managerial attention on high-priority cases. The article also notes an emerging shift away from one-size-fits-all annual cycles toward work-centric, hybrid performance management approaches tailored to different types of work. The implied conclusion is that AI reduces administrative burden and improves process consistency, enabling more meaningful human judgment at critical decision points. Key insights: Performance management dissatisfaction is most often attributed to manager capability and employee experience rather than to the design of the process itself. AI is being applied to specific process steps — goal generation, KPI tracking nudges, and year-end calibration — to reduce administrative burden and improve consistency at scale. Organisations are beginning to move away from uniform annual performance cycles toward hybrid, work-centric models that align assessment periods with the nature of different types of work. Practical takeaways: Generative AI can be used to suggest goals based on role level and accountabilities, reducing the back-and-forth between managers and employees during goal-setting. AI-assisted calibration processes can focus manager attention on the cases requiring most deliberation, rather than requiring sequential review of all employees.