Arguments and discussions concerning the impact of AI on the workplace are somewhat defeating. It is difficult to open any website or newspaper without someone – industry/technology expert/general pundit – stirring, speculating or scare-mongering on how jobs will be lost, changed, improved, redesigned or created.
HR, tasked with getting the best out of people come what may, are at the centre of this, dealing with the impact of AI and technology on the one hand, constantly being regaled with the latest, greatest people management technology on the other.
But there’s another argument forming in the background, a suggestion that takes the issue of HR and IT one step further. An argument that says the future of these departments are one and the same: HR and IT should merge and become one.
Completely left field and impossible? Bear in mind the prevalence of IT in HR. Bear in mind the administration work IT can do, the workplace management, the task management, the people management, the communications and the automation. Bringing the two together would mean organisations could be sure that IT investments were made with people in mind. You’d be certain the contribution of technology to your business went hand in hand with the talent of your business. A win for everyone?
“The Trend Barometer: People Management 2035” developed by the Switzerland University of St. Gallen in collaboration with PwC shows that the future of HR is increasingly tied to technology – particularly the strategic use of AI, big data, and people analytics. According to Prof. Dr. Heike Bruch, Professor and Director of the Institute for Leadership and Human Resource Management, the predicted importance of AI integration in HR rises sharply from 53% in 2025 to 88% in 2035. The research identifies a “dual transformation” – technological disruption alongside cultural realignment. Examples are given of HR functions such as data-driven decision-making and employee experience which are now heavily dependent on IT capabilities.
An early trend
Martin Colyer, innovation and AI strategy director at LACE Partners describes the movement as being in its infancy: “Merging HR and IT is an incredibly early trend,” he says. “To take on the challenge, it will take highly niche capabilities, skills, and experience. This CPO/CIO skillset is a unicorn, a hybrid of skills that is incredibly rare. However it is part of a broader trend where HR leaders could become leaders or owners of IT – in other words the skillset of a CIO will remain, yet the role could be part of the Chief People Officer remit.”
Digital Employee Experience (DEX) management business Nexthink, have also researched this trend, finding that as businesses grapple with falling employee productivity and staff feel overwhelmed by the growing complexity of the digital workplace, merging IT and HR could prove beneficial to dealing with a complex future.
64% predict a complete merger occurring within five years
Their report: ‘The Experience Silo: The Future of HR and IT’, surveyed over 1000 IT leaders, and found 93% agreeing that bringing IT and HR together would increase productivity, boost employee satisfaction and drive engagement. Moreover, 64% of those asked predicted a complete merger occurring within five years. Nexthink believe the coming together of the departments could result in a new function centred around employee experience.
A total of 31% of Nexthink’s survey stopped short of predicting a full merger of departments but they did expect closer collaboration driving digital transformation and improved employee experience. “Virtually every business is facing this crisis of falling engagement and sluggish productivity, although some more than others,” said Vedant Sampath, CTO, Nexthink. “This shows that businesses are considering radical changes in response. This isn’t just about smoother onboarding or faster tech support, it’s about fundamentally reimagining the workspace in a way that allows employees to bring their best selves and produce their best work.”
Two departments, one objective
Tania Garrett, Chief People Officer, Unit4 says there is already a strong connection between the two departments, and bringing them closer will have undeniable benefits: “The HR function already plays a strategic role for many businesses, so closer integration with IT will not necessarily make any difference in that respect,” she says. “In reality, HR has always had some overlap with IT, with skilled technical professionals often working in the HR team to manage the tools used by the function.”
Garrett also sees HR’s role increasing as the pace of technological change kicks in. She notes some companies have already given responsibility for AI to the CPO, not because they necessarily have the skills or insight to assess or implement the technology, but because they are the ones responsible for upskilling employees in the use of that technology and for managing the subsequent business transformation.
“This recognises that AI is becoming part of the corporate function and therefore senior leaders must get to grips with it,” she says. “It is incumbent on HR to understand how AI is going to evolve organisational structures and the skills required. HR must be thinking about how AI can be leveraged to improve productivity, efficiency and customer experience.”
The employee experience of technology
For some, the exploitation of what technology can do could open more doors to HR’s influence across the business. “HR stands to gain far more influence and deliver greater value when it partners closely with IT, because almost every facet of the employee experience now runs on technology,” says Sharon Bernstein, Chief Human Resources Officer at digital adoption platform WalkMe. “A full departmental merger may not be essential, but tighter day-to-day collaboration between the two is becoming mission-critical.
When technology starts to impact wellbeing and performance, it’s not just an IT problem – it’s very much a HR one too.
According to WalkMe‘s own research the average employee now interacts with over 100 software applications each week. Naturally these tools are intended to increase productivity and enhance the employee experience, but as Bernstein notes, without the right training and support they can quickly become a source of frustration. The company has found burnout linked to poor technology experience to be widespread – 20% of UK workers lose sleep due to tech-related frustration, while 35% say they regularly work late because the tools they use are hard to navigate. “When technology starts to impact wellbeing and performance, it’s not just an IT problem – it’s very much a HR one too,” says Bernstein.
Greg Shewmaker, the CEO of enterprise platform rPotential agrees business is at a pivotal moment in the integration of work and technology and that a clear framework of human-AI collaboration is required going forward. Again this framework necessitates HR’s involvement: “There will need to be a level of integration between IT, HR, and other enterprise functions, as more businesses begin to deploy AI agents across their operations,” he says. “Widespread adoption of agentic AI is showing no signs of slowing down. However, poor planning and preparation could realistically lead to job losses or the loss of billions in failed AI investments.”
Cultural and business shift
Shewmaker describes what’s happening as a major change initiative rather than just another IT project – it is a cultural and business-wide shift: “That’s why HR and operations must own the blueprint,” he says. “The workforce transformation belongs to the C-suite, with HR as the director.” Shewmaker quotes a Salesforce global survey of 200 human resource executives that found 86% of Chief Human Resource Officers (CHROs) agreeing that integrating AI agents into their workforce will be a key responsibility over the next few years.
“The future isn’t about choosing between humans and machines,” he adds, “It’s about building teams that blend both human and digital workers.”
Digital agents will be able to handle the routine tasks, leaving the humans to focus on the work that requires critical thinking. To achieve this the workforce needs to be guided through upskilling, continuous learning, and encouraged to embrace partnerships with their digital counterparts. “This type of progress is only achievable if IT and HR are closely aligned,” says Shewmaker.
The future can be created
What emerges then, is not necessarily a merging of departments, but an adaptability within organisations to find a way of bringing together the skills, knowledge and responsibilities of both departments in a way that best address the challenges and the potential that exists.
When these two functions work together, you get smart strategies that combine the power of tech with a real understanding of how people actually work – and want to work.
Lisa Topliss, Director Strategy & Operations from Ricoh Europe states that instead of merging departments, they’re more interested in seeing HR and IT teaming up throughout the workplace transformation journey – whether it’s planning, designing, roll outs or delivering constant and consistent improvements. “When these two functions work together, you get smart strategies that combine the power of tech with a real understanding of how people actually work – and want to work,” she says. “This is because HR knows what employees need to thrive and feel fulfilled, and IT makes sure the tech behind it all is integrated, scalable and future proofed, to help everyone succeed. Together, they can create workplaces where tools for office optimisation and remote collaboration just work – backed by real-time data that keep businesses running smoothly.”
In the end, argues Topliss, businesses that focus on the employee experience by bringing HR and IT into sync will inevitably build environments that boost productivity, spark innovation and keep people engaged. “In today’s digital world, this kind of collaboration isn’t just a nice-to-have, it is an absolute necessity,” she says.
“This is a fundamental shift which will take time,” agrees Martin Colyer, from LACE. “It will also take high levels of bravery from the board.” As Colyer notes, one challenge will be to deliver continue delivering value while the transition takes place. There are great risks that need to be managed along the way – see M&S and so on – but the gains are not simply impressive, they are essential.
