Does Generative AI Have a Role in HR?

According to modelling by the Tech Council of Australia and Microsoft, generative AI could contribute tens of billions of dollars annually to Australia’s economy by 2030, depending on how quickly and responsibly the technology is adopted and how well workers are supported to transition into redesigned roles.

In a period marked by relatively high inflation and low productivity growth, emerging technologies such as generative AI are increasingly viewed as part of the solution. However, realising this potential relies heavily on workforce capability, governance and leadership, which are areas where HR plays a central role.

What is generative AI?

Generative AI refers to a class of artificial intelligence systems that can create new content, including text, images, audio and code, based on patterns learned from large datasets. Unlike traditional rule‑based automation, Gen AI responds to prompts and produces outputs that resemble human‑generated work.

In an HR context, this means Gen AI can assist with tasks such as:

• drafting policies, job descriptions and communications

• summarising employee survey data or reports

• generating training or induction materials

• preparing presentations and workforce insights.

While the technology can be powerful, it does not replace human judgment, context or accountability.

Employers to invest in upskilling teams

To make effective use of Gen AI, organisations will need to invest in workforce upskilling. This goes beyond technical capability and includes:

• data and digital literacy

• ethical and responsible AI use

• critical thinking and oversight

• adaptability as roles evolve.

HR will play a key role in identifying capability gaps, supporting learning pathways and ensuring that employees understand both the opportunities and limitations of Gen AI tools.

Automation means redesigning the workforce

Most of the contribution to the economy would come from increasing workforce productivity by automating routine tasks. On average, Gen AI has the potential capability to automate and augment 44% of Aussie workers' hours at its current level of capability. 

Workers could focus on more value-added tasks and improve the quality of their work. For example, Gen AI in the healthcare industry can improve the accessibility of healthcare by reducing administrative tasks, which frees up time for more one-on-one patient care. 

Another way it can also improve the personalisation of healthcare is through wearable devices, which can collect data on a patient against health metrics. This data can then be used to create tailored care plans for each patient's needs. 

Gen AI can also be used to improve the quality and efficiency of work in other industries, such as manufacturing and transportation. In manufacturing, Gen AI can be used to automate tasks like inventory management and quality control. This can free up workers to focus on other creative and strategic tasks, which can lead to improved product quality and efficiency. In transportation, Gen AI can be used to optimise routes and schedules, which can reduce costs and improve efficiency for drivers.

Consulting firm Gartner believes Gen AI may lower the technical skills required for many roles, which broadens the pool of potential candidates. The roles most impacted by Gen AI will be redesigned with new duties or become phased out. 

Employers should collaborate with HR to understand how their Gen AI investments will affect their team's duties and workflows.

Importance of oversight and responsible AI

Martin Edwards, associate professor at the University of Queensland Business School, says that from an HR perspective, "you still need that people focus, and any AI system will need human oversight". 

Any system that produces, analyses, and works with employee data will need oversight to make sure that the output or recommendations it produces are not biased.

Algorithmic AI systems have long been used in HR for tasks such as processing CVs to match job descriptions. GenAI, on the other hand, has the potential for bias to creep in with inaccurate information. 

Edwards believes even creating job descriptions has significant potential for bias. For example, if a GenAI system is asked to create a job description for a technical role, it will draw data from the internet, which may be biased. If the job descriptions in the data are biased, the Gen AI system's output will also be biased.

Gender-neutral job descriptions are something you'd want to be checking for or making sure the description of the roles is inclusive. A Gen AI system may not be sensitive to those things.

Gen AI content will still require human interaction and evaluation to ensure that the content is appropriate for the organisation, that there is no bias associated with it, and that it is accurate.

There can undoubtedly be time-saving benefits to using Gen AI. It has the potential to be a valuable tool for businesses and HR to streamline routine and administrative tasks. HR can also use Gen AI for HR presentations and reports. This could save a person a significant amount of time, as they would no longer need to spend hours researching and writing the content in the first instance. 

It is important to note that GenAI is not a perfect tool and is still developing. It means there may be some instances where the content generated by Gen AI is not accurate or complete, which can be harmful without any oversight. Additionally, Gen AI may not be able to understand the nuances of human language, which could lead to errors in the content it generates.

What this means for HR leaders

Generative AI does have a place in HR—but only when adopted responsibly and with clear boundaries. HR leaders have a critical role to play in:

• shaping ethical and inclusive use of the technology

• supporting workforce transition and reskilling

• ensuring compliance with employment, discrimination and privacy laws

• maintaining the human focus at the heart of people management.

Done well, Gen AI can enhance HR capability and efficiency. Done poorly, it can undermine trust, fairness and organisational culture.

Key takeaways

Generative AI has the potential to be a valuable tool for HR, but it does not replace human judgment, responsibility or care. With thoughtful governance and strong HR leadership, organisations can harness its benefits while managing its risks.

You can read the full report on Generative AI from the Tech Council of Australia here.