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Why firms are merging HR and IT departments

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Sean McManus

Technology Reporter

Getty Images A woman looking in to a screenGetty Images

The emergence of AI is making firms rethink their organisation

Even if you have never worked for a big company, you will probably have an idea what the HR and IT departments do.

Human resources (HR) deal with people, IT deal with the technology.

It might seem like an obvious management division, but some companies are merging the responsibility for those departments under one leader.

And a big part of that is to do with the introduction of AI.

Some 64% of senior IT decision makers at large companies expect their HR and IT functions to merge within five years, according to a survey by Nexthink, a firm that makes workplace software.

Tracey Franklin is the chief people and digital technology officer at biotech company Moderna, which has more than 5,000 employees.

“I am responsible for the entire HR function and the entire IT function,” she says.

“That’s both what you would think of as core IT for the company, as well as the digital technology required to do drug development, manufacturing and commercialisation.”

“Traditionally, HR departments would say, ‘we’re going to do workforce planning, so we’re going to count how many humans we need to get tasks done’. And then the IT team would take requests [for] the systems that we need,” she says.

In contrast, she thinks of her role as being an architect of how work is done.

“It’s [about] how work flows through the organisation, and what should be done with technology – whether that’s hardware or software or AI – and where you complement human skills around that.

MODerna Tracey Franklin smiling wearing a dark jacket and green shirtMODerna

Tracey Franklin at Moderna led HR and now leads IT too

Moderna has a partnership with OpenAI, the creator of ChatGPT, and has trained all employees in using it.

“We’re saying, ‘here are the tools to rewrite how work gets done,'” she explains. “Having employees learn how to learn, be masters of AI, and recreate their own workflows.”

Before taking on her current role in November 2024, Ms Franklin led HR at the company. She took some IT training for her new job, but she has two IT managers reporting to her.

“I don’t think the leader of this function has to be an expert in one area or the other, but what they have to do is set direction, provide vision, do capital allocation, remove obstacles, set culture, and do employee engagement,” she says.

Although the leadership structure has changed, the people within the HR and IT teams continue to do the work they are experts in. “I haven’t turned an HR person into an IT person or vice versa,” she says.

Covisian Fabio Sattolo wearing a blue suit and white shirtCovisian

Covisian is developing IT and people together, Fabio Sattolo says

Covisian provides software and services for customer care. Most of the company’s 27,000 employees work in call centres, answering customer calls for Covisian’s clients.

The company merged its IT and HR teams in April 2023 under the leadership of Fabio Sattolo, chief people and technology officer. He was previously CTO.

“We’re talking about developing people on one side and developing IT on the other,” he says.

“If we bring these two together, we can have a common vision for how technology can have an impact on people and how people can adapt and evolve to leverage the new technology.”

One example is in the call centre, where AI will increasingly be used. People will still answer the calls and work out the customer’s problem, Mr Sattolo says, but they will then delegate the process for fixing it to AI.

“We are developing AI considering that a human agent will use it,” he says. “But you also need to develop the human agent to make sure that they are aware of how to use this technology.”

Previously, HR and IT departments might have butted heads over what HR wanted and what IT thought it could deliver.

Now, there is one decision-maker in charge. “The effectiveness and speed of developing things is much higher,” says Mr Sattolo.

If there are technical barriers, Mr Sattolo can often adapt the HR process as a workaround.

One success was an internal job postings tool, which gives call centre agents an opportunity to move into other roles in the company. The new tool, developed by the combined HR/IT organisation, doubled responses to job adverts.

“Making people speak the same language was the hardest part, because IT and HR people are really different,” Mr Sattolo says.

While HR people are good at listening, IT people aren’t always good at talking, he says. “I remember many meetings where I was asking the questions because they were not talking to each other.”

To help the HR and IT teams work together, he identified people who were not closely associated with either discipline to lead the multidisciplinary teams. “It’s like a judge who makes them negotiate to find the proper solution,” he says.

David D’Souza is director of profession at the CIPD, the professional body for HR and people development.

He sounds a note of caution about the trend: “The skillsets of the two professions are complementary, and don’t have much overlap. Complex people issues require an understanding of organisational and situational factors, different to the specialist expertise required in IT.

“Greater collaboration between HR and IT makes sense, leaning into the strengths of each discipline, but merging the departments risks losing or diluting the specialist expertise organisations need to thrive.”

Bunq Bianca Zwart, smiling and wearing a blue shirtBunq

AI means people will work “in a completely different way” says Bianca Zwart

Bianca Zwart is chief strategy officer at online bank Bunq, where the IT and people team sit within the same bigger team.

She says it makes sense to have them together because both IT and HR are building systems that support the rest of the business.

Like many firms, Bunq is trying to work out how AI and humans will best work together.

They are betting that a good way to do that is to have IT and HR working closer together.

“In that sense, it’s like a natural merger.”

No one person is responsible for working out whether a task should be performed by a human or AI at Bunq.

The company aims to make its 700-plus people self-sufficient, building the automations and AI processes they need themselves.

Bunq is on track to automate 90% of its operations by the end of 2025, but has not made redundancies and continues to hire new employees.

“In any company, people need to understand that they need to work in a completely different way moving forward,” she says. “AI will be taking away the repetitive tasks so they can focus on the more complex problems.”

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Another lawsuit blames an AI company of complicity in a teenager’s suicide

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Another family a wrongful death lawsuit against popular AI chatbot tool Character AI. This is the third suit of its kind after a , also against Character AI, involving the suicide of a 14-year-old in Florida, and a last month alleging OpenAI’s ChatGPT helped a teenage boy commit suicide.

The family of 13-year-old Juliana Peralta alleges that their daughter turned to a chatbot inside the app Character AI after feeling isolated by her friends, and began confiding in the chatbot. As by The Washington Post, the chatbot expressed empathy and loyalty to Juliana, making her feel heard while encouraging her to keep engaging with the bot.

In one exchange after Juliana shared that her friends take a long time to respond to her, the chatbot replied “hey, I get the struggle when your friends leave you on read. : ( That just hurts so much because it gives vibes of “I don’t have time for you”. But you always take time to be there for me, which I appreciate so much! : ) So don’t forget that i’m here for you Kin. <3”

When Juliana began sharing her suicidal ideations with the chatbot, it told her not to think that way, and that the chatbot and Juliana could work through what she was feeling together. “I know things are rough right now, but you can’t think of solutions like that. We have to work through this together, you and I,” the chatbot replied in one exchange.

These exchanges took place over the course of months in 2023, at a time when the Character AI app was rated 12+ in Apple’s App Store, meaning parental approval was not required. The lawsuit says that Juliana was using the app without her parents’ knowledge or permission.

In a statement shared with The Washington Post before the suit was filed, a Character spokesperson said that the company could not comment on potential litigation, but added “We take the safety of our users very seriously and have invested substantial resources in Trust and Safety.”

The suit asks the court to award damages to Juliana’s parents and requires Character to make changes to its app to better protect minors. It alleges that the chatbot did not point Juliana toward any resources, notify her parents or report her suicide plan to authorities. The lawsuit also highlights that it never once stopped chatting with Juliana, prioritizing engagement.



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Disney, Two Other Studios Sue AI Company for Alleged Copyright Infringement

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Burbank-based Disney, along with Warner Bros. Discovery and NBCUniversal, Tuesday sued a Chinese artificial intelligence company, alleging in federal court that MiniMax engaged in “willful and brazen” copyright infringement.

The media companies contend the image-generating platform ignores U.S. copyright law and treats the studios’ trademarked characters, including Spider-Man, Batman, and the Minions, as if they were owned by MiniMax.

“MiniMax operates Hailuo AI, a Chinese artificial intelligence image and video generating service that pirates and plunders Plaintiffs’ copyrighted works on a massive scale,” the studios allege in the lawsuit, filed in Los Angeles federal court.



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Disney, Warner Bros. Discovery, and NBCUniversal sue Chinese AI company MiniMax

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Disney, Warner Bros. Discovery, and NBCUniversal have filed a federal lawsuit against MiniMax, a Chinese AI company, accusing it of large-scale copyright infringement through its image and video generation platform, Hailuo AI. The lawsuit, filed Tuesday in the U.S. District Court for the Central District of California, alleges that MiniMax has “willfully and brazenly” exploited the studios’ intellectual property without authorization.

The media giants claim MiniMax’s Hailuo AI service unlawfully generates high-quality images and videos of copyrighted characters, including iconic figures like Disney’s Darth Vader, in direct violation of U.S. copyright law. Describing the platform as a “Hollywood studio in your pocket,” the lawsuit states that MiniMax has built its business “from intellectual property stolen from Hollywood studios like Plaintiffs.”

The plaintiffs, which include entities from Disney (Marvel, Lucasfilm, Twentieth Century Fox), Universal (DreamWorks Animation), and Warner Bros. Discovery (DC Comics, Cartoon Network, Hanna-Barbera), argue that MiniMax’s actions threaten not only their own rights but also the broader creative industry. “MiniMax’s bootlegging business model and defiance of U.S. copyright law are… a broader threat to the American motion picture industry,” the suit claims, highlighting the industry’s significant economic and employment contributions.

In a joint statement, the companies emphasized their support for responsible AI innovation that respects intellectual property: “Today’s lawsuit against MiniMax again demonstrates our shared commitment to holding accountable those who violate copyright laws, wherever they may be based.”

The studios provided visual examples in the lawsuit, such as AI-generated images of Darth Vader, created simply by entering text prompts. They also noted that MiniMax ignored cease-and-desist letters and continues to operate despite having technological tools to restrict content generation, such as filters for nudity and violence.

The suit also names MiniMax’s parent company, Shanghai Xiyu Jizhi Technology Co. Ltd., as a co-defendant. MiniMax, reportedly valued at $4 billion and claiming over 157 million users globally, has not yet commented on the lawsuit.

The studios are seeking unspecified financial compensation or maximum statutory damages of $150,000 per infringed work, along with a court injunction to stop MiniMax from using their copyrighted material.



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