AI is now embedded in the daily operations of most organisations. Research shows that while nearly 80% of companies have deployed AI in at least one function, only 24% of HR teams are maximising the business value of digital tools despite years of investment. This gap reveals a crucial reality: AI is not just an HR initiative or an IT project. It is a strategic shift that demands closer collaboration between these two functions, guided by leadership, new skills, and an agile mindset.
From parallel efforts to shared ownership
For years, HR and IT have pursued digital initiatives along parallel tracks. IT focused on infrastructure, security, and integration, while HR concentrated on employee experience and talent management. The rise of AI has blurred these lines. Automating recruitment, applying predictive analytics to workforce planning, or deploying generative AI to personalise employee communications all require deep collaboration between HR and IT.
Neither function can succeed alone. IT holds the technical expertise to implement secure, scalable platforms. HR brings insight into people, culture, and organisational priorities. When these perspectives converge, businesses unlock transformation that is both technologically sound and human-centred. Cross-functional “digital squads” that include HR, IT, and business leaders are already proving more effective at piloting and scaling AI solutions.
Leadership at the centre of change
Technology does not transform organisations — leaders do. The successful adoption of AI requires senior leaders to articulate a shared vision that connects digital capability to business strategy. Without this alignment, transformation efforts risk becoming fragmented experiments rather than enterprise-wide value drivers.
McKinsey’s research shows that companies embedding AI and digital tools into HR functions are twice as likely to succeed in transformation. But this success hinges on leaders modelling adaptability, prioritising ethical AI use, and ensuring investment in both technology and people. Executive sponsorship from both the CIO and CHRO is essential to secure resources, manage risk, and drive cultural adoption across the workforce.
Skills for a new era
AI reshapes not only how work gets done, but also the skills required to thrive. HR professionals need to build digital fluency, including data literacy, HRIS expertise, and the ability to use generative AI responsibly. IT professionals, meanwhile, must develop empathy for workforce needs, understanding how technical systems influence employee experience and productivity.
Yet organisations are falling behind. Research indicates that HR’s digital skills improved by only 7% on average over four years. To close this gap, joint HR-IT learning initiatives are vital. Upskilling HR teams in analytics while familiarising IT teams with human-centric design ensures both groups can collaborate effectively. Continuous learning, not one-off training, is the only way to keep pace with the evolving landscape.
Agility as a mindset
AI accelerates change, meaning organisations can no longer rely on static workforce plans or rigid systems. Agility (the ability to adapt quickly to new information and conditions) becomes the defining mindset for both HR and IT.
For HR, agility means using predictive analytics to anticipate skills gaps and rapidly redesigning roles. For IT, it means deploying modular, cloud-based systems that scale with business needs. Together, agile HR and IT functions can respond faster to disruption, from geopolitical shocks to shifting employee expectations.
Deloitte’s transformation case work shows that digitisation creates a “single source of truth” for workforce data, enabling organisations to pivot more effectively. But this agility only emerges when HR and IT align their roadmaps and iterate continuously rather than treating transformation as a one-off project.
Balancing opportunity and risk
AI presents immense opportunities, but also risks. The introduction of regulations like the EU AI Act highlights the dangers of bias, privacy breaches, and misuse. HR is the guardian of fairness and employee trust, while IT safeguards cybersecurity and compliance. To manage risk without stifling innovation, HR and IT must co-create governance frameworks for ethical AI use.
For example, AI-enabled recruitment tools can expand diversity if designed correctly, but amplify bias if not. Similarly, generative AI can streamline employee communications but risks misinformation if left unchecked. Joint oversight ensures AI is deployed responsibly, with transparency and accountability embedded from the outset.
The payoff of HR-IT synergy
When HR and IT align around AI, the impact is tangible.
- Faster recruitment and mobility: McKinsey found that automation reduced time-to-hire at one global bank from 75 days to four weeks. AI-driven workforce planning doubled internal mobility compared to traditional approaches.
- Personalised employee experiences: Organisations using AI to tailor development pathways see higher engagement and retention, reflecting the consumer-grade experiences employees expect.
- Stronger employer brand: Digital fluency signals innovation, attracting younger generations who view inclusivity and transparency as baseline expectations.
- The strategic advantage is clear: AI transforms HR data from record-keeping into business intelligence. When integrated with IT systems, this data becomes a board-level asset, guiding decisions about workforce resilience, agility, and competitiveness.
Building the future together
AI is reshaping not just HR or IT, but the fabric of work itself. The question is no longer whether to adopt AI, but how to integrate it responsibly, effectively, and collaboratively. Success will depend on three imperatives:
- Leadership: Executives must set a clear vision and role-model adaptability.
- Skills: HR and IT must jointly build digital fluency and human-centric understanding.
- Agility: Both functions must embrace iterative, responsive approaches to transformation.
For organisations willing to invest in this partnership, the rewards extend beyond efficiency. They gain the ability to attract top talent, pivot in uncertainty, and build workplaces where technology and humanity reinforce each other.
At Paracon, we understand the importance of this convergence. As a leader in workforce solutions and digital transformation, we help organisations bridge HR and IT, align leadership, and build the skills and agility required for the AI era.
