Leverage Generative AI for human resource management: integrated risk analysis approach

Abstract

Generative Artificial Intelligence (GenAI) is rapidly transforming human resource management (HRM) by enhancing efficiency and decision-making across HR practices. However, the integration of GenAI in HRM introduces significant risks, such as ethical concerns, bias, privacy issues, and potential disruptions to traditional HR roles, which could undermine the intended benefits unless properly managed. This paper proposes an integrated risk analysis approach, leveraging Leavitt’s Diamond model to systematically identify, assess, and manage the risks associated with the use of GenAI in HRM. Through a comprehensive literature review and the Delphi method involving HR professionals, we construct a detailed risk map that highlights critical risks. Actionable risk mitigation strategies are proposed using an integrated GenAI risk management model that effectively synthesizes risk prioritizing, controlling, and monitoring. This research contributes to the understanding of how to effectively deploy GenAI in HRM while safeguarding organisational integrity and employee well-being, offering valuable insights for academics, HR practitioners, and policymakers.