The Human Element

A CEO of a manufacturing technology company recently remarked that IT departments are evolving into "HR departments" for AI agents. This view is up for debate—many argue that HR should take the lead in overseeing and managing AI employees. In fact, this shift has sparked discussions about a new executive role: the Chief Human and AI Resources Officer, CHAIRO.

This statement actually underscores the growing interconnection of HR with IT. The future of work isn’t about humans competing with machines; it’s about humans working alongside machines. And HR will play a critical role in ensuring that partnership succeeds.

HR needs to actively participate in shaping the AI roadmap within their organizations. But to effectively partner with IT as a strategic ally, HR must possess a solid understanding of the technology while leveraging its expertise in human-centered approaches.

Let’s explore the essential strategic partnership between HR and IT, including how both departments can collaborate to leverage the next big thing in AI—agentic AI, which is AI systems that can act autonomously to achieve goals—for effective workforce development and business success.

The Power of Collaboration: IT and HR Working Together

The CEO’s remark about IT becoming the HR for AI agents highlights the technical management aspect of AI deployment. While IT is undoubtedly responsible for AI systems' deployment, maintenance, and security, viewing AI implementation as a purely technical challenge is short-sighted. Excessive AI tools without proper guidance can cause employees to experience digital exhaustion, negatively impacting the overall employee experience. Successfully integrating AI agents into the workforce requires a holistic approach that leverages IT and HR's strengths.

In the future, think about agents like employees. IT sets them up to make sure they have access to the knowledge, tools and systems they need, but ultimately, HR will be responsible for how they get managed and how they collaborate across the organization.

We should note how this dynamic ultimately plays out is still uncertain. HR’s role could evolve to bridge more of the technical side of AI adoption, working alongside IT to guide implementation. In any case, collaboration between the two functions will be essential for success.

Complementary Expertise Between IT and HR

Research indicates that combining the strengths of humans and AI leads to better performance than when they operate independently. Similarly, by integrating the strengths of IT and HR, organizations can maximize the benefits of AI while minimizing potential risks.

IT's expertise lies in technical proficiency, which includes data management, system integration, and ongoing troubleshooting and maintenance.

HR's strengths include understanding the skills and capabilities of the current workforce,  managing organizational change, and addressing employee concerns. 

Understanding the unique strengths of IT and HR and making a clear business case for the technology can lead to a more successful AI adoption strategy, maximizing AI's benefits for the organization and its employees.

For example, here's how IT and HR can collaborate to use AI for HR Service Delivery. IT can manage the ticketing system integration, and HR can provide the agent with the code of conduct, policies, and other relevant materials, including precedents on how to handle various situations the agent might encounter. HR takes the lead in creating guidelines for the agent, using its knowledge of employment law, diversity, and ethical HR practices. Together, IT and HR can set the agent up for success. 

Why IT and HR Alignment is Key to Embracing Agentic AI

Just when organizations begin to grasp the potential uses of AI tools, a new wave of innovation emerges—this time in the form of agentic AI, also known as AI agents. 

Agentic AI encompasses systems that can operate autonomously to achieve specific goals. These systems can refine their actions based on experience and feedback, making them more effective. 

It's understandable to feel like agentic AI has only recently emerged. According to Gartner, fewer than 1% of enterprise software applications featured agentic AI in 2024. However, this figure is expected to rise significantly, with projections indicating that by 2028, 33% of enterprise software applications will incorporate agentic AI technology.

The increasing presence of agentic AI emphasizes the importance of HR deepening its understanding of AI. But let’s be clear: while HR professionals might not need to become prompt engineers, they do need a fundamental understanding of agentic AI’s capabilities and requirements:

• Machine learning: The core technology behind many AI agents.
• Data requirements: The types of data that AI agents need to function effectively.
• Integration challenges: How AI agents interact with existing HR systems and workflows.
• Limitations of AI: Understanding that AI is not a magic bullet and has limitations

IT understands the technical feasibility of agentic AI, including how well it can integrate into existing systems and security and privacy considerations. Understanding the technical fundamentals of agentic AI enables HR to collaborate effectively with IT. HR better positions itself as a vital architect of the future of work, acting as a critical link between IT's technical capabilities and the human needs of the workforce. 

The partnership between IT and HR is not just about combining technical expertise with people skills; it's about creating a shared understanding that leads to responsible and effective AI adoption.

The Critical Role of HR in Agentic AI: Ensuring a Human-Centered Future

Will IT departments become the “HR departments" of AI agents? While seemingly provocative, this thought underscores a profound shift in HR's role. HR is no longer just about managing people; it's about managing the intersection of people and technology. It's about ensuring that AI is deployed to benefit the organization and its employees.

HR leaders who embrace this challenge and proactively develop their own and their teams’ skills will be invaluable partners in shaping the future of work. They will be the architects of a human-centered AI strategy that maximizes the potential of both humans and machines, and they’ll be the champions of a skilled, adaptable, engaged, empowered, and fulfilled workforce.

The future of work is not about humans versus AI; it's about humans and AI. HR is the critical bridge that connects the two, ensuring a future where technology serves humanity and humanity thrives alongside technology.