A new report on workplace pay practices highlights how AI is reshaping performance evaluation, undermining “peanut butter” raises and intensifying a divide between high-performing “super users” and other employees. Mercer’s survey cited in the story estimated only about 4% of U.S. employers are giving equal raises, despite earlier indications more firms planned to. The report links the shift to AI integration into performance reviews and promotion criteria, including examples from technology companies where AI usage affects evaluations. It also notes employee resistance, with some workers bypassing AI tools or avoiding them because they make work more complex. For higher education employers—universities that manage large professional workforces—the story signals that AI governance may soon matter as much for HR policy and incentives as it does for teaching and research.