Author(s)

Boyu Si ¹

Affiliation(s)

¹ The University of Leeds, Leeds, LS3 1DH, UK

Corresponding Author

Boyu Si

ABSTRACT

With the dawn of the digital era, Artificial Intelligence (AI) technology has undergone remarkable advancements, leading to its increasing application in various fields, including financial engineering and risk management. This study examines the integration of AI in human resource management (HRM), emphasizing its potential to enhance risk assessment, decision-making processes, and operational efficiency within financial institutions. The paper delves into the applications of AI in talent selection, retention, and development, discussing how it can optimize human capital allocation and mitigate the risks associated with staffing decisions. Additionally, it explores the utilization of AI in building robust HR systems that can streamline financial operations and manage risks effectively. However, the implementation of AI in HRM also poses challenges, such as ethical considerations, technological constraints, and employee acceptance, which must be carefully addressed. This paper aims to provide a deep understanding of the current state of AI integration in HRM, highlighting its opportunities, challenges, and potential impact on financial engineering and risk management practices.

KEYWORDS

Artificial intelligence, human resource management, financial engineering, risk management, talent selection, retention, decision-making, operational efficiency

CITE THIS PAPER

Boyu Si, Integration of Artificial Intelligence in Human Resource Management: Opportunities, Challenges, and Future Perspectives Based on the Financial Engineering and Risk Management Perspective. Financial Engineering and Risk Management (2024) Vol. 7: 9-14. DOI: http://dx.doi.org/10.23977/ferm.2024.070302.

REFERENCES

[1] Luo Wenhao, Huo Weiwei, Zhao Yixuan, et al. AI-Driven Organization and Human Resource Management Transformation: Practical Insights and Research Directions[J]. Chinese Human Resources Development, 2022, 39(1): 4-16.
[2] MIN H. Artificial intelligence in supply chain management: theory and applications[J]. International Journal of Logistics Research and Applications, 2010, 13(1): 13-19.
[3] Edwards J S, Duan Y, Robins P C. An analysis of expert systems for business decision making at different levels and in different roles[J]. European Journal of Information Systems, 2000, 9(1): 36-46.
[4] Kaplan A, Haenlein M. Siri, Siri, in my hand: Who’s the fairest in the land? On the interpretations, illustrations, and implications of artificial intelligence[J]. Business Horizons, 2019, 62(1): 15-25.
[5] LI D. Optimization of human resource management system based on clustering algorithm[C]. Cham, Switzerland: 2022 Application of Intelligent Systems in Multi-modal Information Analytics (ICMMIA), 2022: 84-91.
[6] Robert L P, Pierce C, Marquis L, et al. Designing fair AI for managing employees in organizations: a review, critique, and design agenda[J]. Human-Computer Interaction, 2020, 35(5-6): 545-575.
[7] YE Y Y, ZHU H S, XU T, et al. Identifying high potential talent: A neural network based dynamic social profiling approach[C]. Beijing, China: 2019 19th IEEE International Conference on Data Mining (ICDM), 2019: 718-727.
[8] Zhao Y, Hryniewicki M K, Cheng F, et al. Employee turnover prediction with machine learning: a reliable approach[C]. Cham, Switzerland:2018 Intelligent Systems Conference (IntelliSys), 2018: 737-758.
[9] VAISHNAVI, AMRITAA K S, ACHWANI S. A study on use of artificial intelligence in human resource management [J]. Gavesana Journal of Management, 2018, 10(2): 45-56.
[10] PAN Y, FROESE F, LIU N, et al. The adoption of artificial intelligence in employee recruitment: the influence of contextual factors[J]. International Journal of Human Resource Management, 2022, 33(6): 1125-1147.
[11] FREY C B, OSBORNE M A. The future of employment: how susceptible are jobs to computerisation? [J]. Technological Forecasting and Social Change, 2017, 114: 254-280.
[12] FANG Xin, LIU Xin. On the Opportunities and Challenges of Human Resource Management in the Era of Artificial Intelligence[J]. Journal of Shandong University of Administration, 2019, 31(4): 104-109.
[13] ALMALIS N D, TSIHRINTZIS G A, KARAGIANNIS N, et al. FoDRA-A new content-based job recommendation algorithm for job seeking and recruiting[C]. Corfu, Greece: 2015 6th International Conference on Information, Intelligence, Systems and Applications (IISA), 2015: 1-7.
[14] LIU D. Reconstruction of Human Resources and Employment Relationship and Social Impact Analysis in the Context of Artificial Intelligence[J]. Yunnan Social Sciences, 2020, 40(1): 47-52.
[15] VAISHNAVI, AMRITAA K S, ACHWANI S. A study on use of artificial intelligence in human resource management[J]. Gavesana Journal of Management, 2018, 10(2): 45-56.
[16] JERMAN A, BACH M P, ALEKSIC A. Transformation towards smart factory system: examining new job profiles and competencies[J]. Systems Research and Behavioral Science, 2020, 37(2): 388-402
[17] LI Ni. AI era, the way of HR attack[J]. Human Resources, 2017, 32(10): 28-30.
[18] Zheng Zhihang. The Ethical Crisis and Legal Regulation of Artificial Intelligence Algorithms[J]. Journal of Northwest University of Political Science and Law, 2021, 39(1): 14-26.
[19] Chen Dingxiang, Liu Bangcheng. Human Resource Management in the Public Sector in the Era of Artificial Intelligence: Practical Application and Theoretical Research[J]. Public Administration and Policy Review, 2022, 11(4): 38-51.
[20] ZHANG Hongbo, WANG Feifei, LIU Yumei. A New Artificial Intelligence Prediction Method for Ionospheric Scintillation Events in UHF Band Based on Small Data Volume[J/OL]. Radio Science Journal. (2022-07-19). https://kns.cnki.net/kcms/detail/41.1185. TN.20220716.1743.001.html. 
[21] RAUNAK M S, KUHN R. Explainable artificial intelligence and machine learning[J]. Computer, 2021, 54(10): 25-27. 
[22] Ma Shanshan, Li Binbin, Xu Yang. Research on Standardization of Trustworthy Artificial Intelligence[J]. Information Technology and Standardization, 2022, 64(9): 46-54.

Sponsors, Associates, and Links

---

• Information Systems and Economics
  
  
• Accounting, Auditing and Finance
  
  
• Industrial Engineering and Innovation Management
  
  
• Tourism Management and Technology Economy
  
  
• Journal of Computational and Financial Econometrics
  
  
• Accounting and Corporate Management
  
  
• Social Security and Administration Management
  
  
• Population, Resources & Environmental Economics
  
  
• Statistics & Quantitative Economics
  
  
• Agricultural & Forestry Economics and Management
  
  
• Social Medicine and Health Management
  
  
• Land Resource Management
  
  
• Information, Library and Archival Science
  
  
• Journal of Human Resource Development
  
  
• Manufacturing and Service Operations Management
  
  
• Operational Research and Cybernetics