As AI shifts from a back-office utility to a strategic tool, organisations such as the pharmaceutical company Moderna and UK housing association Peabody are redesigning their operating models by fusing HR and IT.
Moderna’s decision to merge its HR and IT teams into a single people and digital technology function signals a deeper organisational shift driven by the growing role of AI within organisations. This change goes beyond operational efficiency. It’s about rethinking how people, systems and processes come together to enable continuous adaptation. With more than 3,000 custom language models now embedded across the business, the new function allows for greater human oversight of the technology and helps create a more agile and personalised workplace.
Peabody has taken a slightly different approach. The organisation revamped its HR model to include strategic HR partners, a dedicated data team and an internal academy to nurture apprentices. The aim was to align people strategy with digital transformation to meet the nuanced needs of local communities.
These are two examples of a wider trend of companies merging their HR and IT departments. By bringing together these two functions, organisations gain the ability to reshape culture, accelerate innovation and build more resilient, future-ready operating models. AI has many uses for HR teams but leveraging this technology requires HR professionals to rethink how they hire, develop and lead.
Transparency in hiring
AI is increasingly being used in the hiring process. While many of these tools are designed to make recruitment more objective and efficient, if left unchecked they can replicate or even exacerbate existing inequalities.
Tackling this issue requires a multifaceted approach. Legal safeguards, such as disparate impact analysis and transparency mandates – such as those under GDPR – serve as necessary foundations. But real progress also hinges on embedding ethics into technical design. This requires businesses to make their datasets inclusive, ensure AI models are fair and hire diverse development teams.
Emerging regulations, such as the EU AI Act and the US Algorithmic Accountability Act, mark an important shift towards more accountable and bias-aware AI governance. Ultimately, fairness in AI isn’t merely a compliance checkbox – it’s a moral imperative shaping the future of human-centred technology.
Attracting talent
Intelligent recruitment platforms, powered by AI and predictive analytics, do more than sift through CVs. With human oversight, they can forecast performance potential and cultural fit, turning talent acquisition into a strategic advantage.
Once hired, employees benefit from bespoke development paths, enabled by skill taxonomy tools and adaptive learning systems that promote both reskilling and training. Job architecture platforms map internal career mobility, transforming static roles into dynamic journeys.
This holistic approach to talent management not only safeguards institutional knowledge and nurtures top performers – it actively cultivates a workforce invested in innovation, agility and continuous growth. As a result, organisations can become more attractive for candidates who want to build their careers and develop new skills.
Upskilling, reskilling or both?
Upskilling and reskilling are pivotal strategies for businesses adapting to the AI era, each offering distinct but complementary advantages. Upskilling enhances employees’ existing capabilities, such as learning to use generative AI or machine learning tools, allowing them to stay relevant as their roles evolve. Reskilling, on the other hand, equips individuals with entirely new skillsets to transition into different roles, such as moving from data processing to web development. For organisations, these approaches deliver tangible benefits, such as improved productivity, higher retention rates and greater operational efficiency.
HR must take a leading role in AI
As organisations continue to navigate the complexities of AI-led transformation, it is increasingly evident that the collaboration between HT and IT is not merely optional but imperative. This strategic convergence enables enterprises to steer through rapid technological change while anchoring progress in human values.
By championing transparency, ethics and inclusivity within their AI initiatives, businesses can foster a culture of trust and innovation. These principles are not just moral obligations, they can become a competitive advantage as AI becomes more integrated in the workplace.
Harnessing the transformative potential of artificial intelligence and reimagining the future of work allows us to shape workplaces that are not only more streamlined and productive, they’re also more empathetic and employee-centric.
Jon Lester is vice president of HR technology, data and AI at IBM
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