Companies Merge HR and IT Departments Amid AI Adoption

Companies are merging HR and IT departments to better align with the introduction of AI. Tracey Franklin, Moderna's chief people and digital technology officer, oversees both departments, focusing on workflow and technology integration. The merger is expected to become more common, with 64% of large companies anticipating a merge within five years. The goal is to create a more efficient and technologically savvy workforce.

Companies are increasingly merging their Human Resources (HR) and Information Technology (IT) departments to better align with the integration of artificial intelligence (AI). This strategic move is expected to become more common, with 64% of large companies anticipating a similar merger within the next five years [1]. The goal is to create a more efficient and technologically savvy workforce.

One notable example of this trend is Moderna, where Tracey Franklin, the chief people and digital technology officer, oversees both departments. This integration focuses on workflow and technology integration, aiming to streamline operations and enhance the overall employee experience [1]. By combining HR and IT, companies can leverage AI to automate routine tasks, improve decision-making, and enhance employee engagement.

The integration of AI in HR is not just about automation; it is about transforming the way HR functions. AI agents, for instance, can handle a wide range of tasks, from screening job applicants to managing employee requests and even delivering personalized onboarding experiences [2]. These agents can interpret nuance, make decisions dynamically, and take initiative across multi-step processes, offloading the complexity that traditional business process automation (BPA) was not built to handle [2].

The benefits of AI-driven HR integration are evident in the financial performance of companies like Paycom Software. Paycom has raised its 2025 revenue and profit forecasts due to the growing demand for AI-enhanced features in its employee management services [1]. The company now expects fiscal 2025 revenue between $2.05 billion and $2.06 billion, up from its previous projection of $2.02 billion to $2.04 billion [1]. This growth is a testament to the potential of AI in transforming the HR landscape.

However, the integration of AI also presents challenges. Companies must ensure that AI agents are deployed with intention and that they augment, rather than replace, human capabilities. The focus should be on scaling and amplifying human connection, making the HR function more responsive, personalized, and service-centered [2]. This balance is crucial for maintaining the strategic value of the HR function.

In conclusion, the merger of HR and IT departments driven by AI integration is a significant trend in the business world. As companies like Paycom and Moderna demonstrate, this integration can lead to enhanced efficiency, improved decision-making, and a more technologically savvy workforce. However, it is essential to deploy AI with intention and ensure that it complements, rather than replaces, human capabilities.

References:

[1] https://theoutpost.ai/news-story/paycom-raises-2025-forecasts-as-ai-integration-boosts-demand-for-hr-software-18796/
[2] https://blog.workday.com/en-us/ai-agents-for-hr-top-use-cases-and-examples.html