Artificial intelligence is shifting from back-office tool to core strategic driver, forcing companies to rethink the long-standing divide between HR and IT. Businesses such as Moderna and Peabody are aligning people strategy, data and digital capability in single operating models designed to scale AI responsibly while keeping workplaces adaptive and humane.

Moderna has embedded thousands of bespoke generative-AI models across its operations, built an internal ChatGPT, and merged HR with technology into a “people and digital technology” function — a structural change the firm says has accelerated adoption and efficiency, albeit alongside some role reductions.

Peabody’s transformation has centred on a people-data team and localised HR partners, combining analytics with community-level needs, and creating an internal academy to grow apprenticeships and skills. Both models fuse human insight with digital capability.

Regulatory pressure is adding urgency. The EU AI Act now requires transparency for high-risk and certain consumer-facing systems, while the UK’s Information Commissioner’s Office is mandating Data Protection Impact Assessments and robust monitoring for recruitment AI. Global moves toward algorithmic accountability are reinforcing expectations that AI must be auditable, explainable and contestable.

The strategic case for HR-IT convergence is clear: shorten fairness feedback loops, embed learning into automation, and integrate data stewardship into everyday processes. McKinsey estimates that well-designed reskilling programmes can lift productivity by 6–12% while improving retention. Internal academies and adaptive learning platforms can redeploy staff into roles shaped by digital transformation.

Risks remain — bias, privacy breaches and the pace of change can damage trust — but can be managed through diverse design teams, transparent redeployment, and continuous measurement of fairness and inclusion.

For UK firms, this is a leadership opportunity. Organisations that align governance, proactive reskilling and people-centred design can turn compliance into competitive advantage, attract top talent and show that AI adoption can be both powerful and principled. The task for HR is to become steward of a technology-enabled future that is productive, fair and deeply human.

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