A recent survey conducted by workplace software provider Nexthink indicates a significant organizational shift on the horizon, with 64% of IT executives in large organizations anticipating the merger of their human resources and IT departments within the next five years. This prediction is primarily driven by the rapid evolution of artificial intelligence technologies, which are increasingly automating core HR functions and necessitating deeper integration between technological infrastructure and people management.
The potential consolidation is viewed as a strategic move to streamline operations and enhance workplace efficiency. As AI systems take on more tasks traditionally handled by HR—such as recruitment, onboarding, and employee engagement analytics—the operational boundaries between the two departments are becoming increasingly porous. Companies like D-Wave Quantum Inc. (NYSE: QBTS) are developing advanced AI that further blurs these functional lines, accelerating the need for a unified approach.
However, this trend carries substantial implications for organizational design and expertise preservation. David D’Souza from the CIPD cautions that while collaboration between IT and HR is undoubtedly beneficial, a full merger risks diluting the distinct, specialized knowledge each function possesses. The survey underscores the necessity for careful management of any integration to ensure that the unique strengths of HR in people strategy and IT in technological implementation are not compromised but rather enhanced through synergy.
For HR vendors and industry stakeholders, this anticipated shift signals a transformative period in service and product demand. The convergence suggests a growing market for solutions that sit at the intersection of human capital management and information technology, particularly platforms that leverage AI for talent analytics, automated workflow, and employee experience monitoring. Vendors may need to adapt their offerings to cater to these newly blended departments, focusing on tools that facilitate data-driven decision-making and cross-functional collaboration.
The broader impact extends to workplace dynamics and the future job market. As departments merge, there will be an increased emphasis on technological proficiency within HR roles and people-centric understanding within IT roles. This evolution will likely spur the creation of new hybrid positions and require significant upskilling for existing employees. The findings from the Nexthink survey highlight a critical need for organizations to proactively plan for this structural change. Successfully navigating this integration will be pivotal for maintaining operational effectiveness and competitive advantage in an increasingly AI-driven business environment.
