The AI hype cycle has companies worried that they’re behind the times. Never fear: artificial intelligence is far from replacing payroll professionals.
The rise of artificial intelligence has been a major topic of discussion at every industry event I’ve attended in the past few years. At times, it can appear that AI is the solution for every business issue, and if you’re not deeply immersed in it, you’re already late to the party.
What do we mean by AI?
But here’s a secret: everyone feels a little behind the curve. And organisations rushing to implement Generative AI tools now are not necessarily going to see a return on that investment. Things are moving so quickly that tools and technologies are rapidly being outdated, costs are almost certain to escalate and in its current state, in most use cases, AI is still like an intern whose work you must always double-check. Ironically, the technology is bad at the things we expect computers to be good at, and surprisingly capable in areas where humans aren’t used to asking them for help.
But that’s not an excuse to ‘sit this one out’. Change is real and coming at pace. While I doubt many companies are yet ready to have AI run payroll autonomously, it is finding its way into payroll workflows. Be sceptical of the hype, especially that AI Agents are ready to run payroll and accomplish every other HR task with ease. But do roll up your sleeves to play in the AI sandbox and get familiar with what the technology can do for them. Here are a few things I’ve found helpful so far:
AI tools payroll people should try out
How AI could be helpful for payroll
Automation has been a gamechanger for payroll in minimising manual interventions and streamlining operations, saving time and money while reducing human errors. Robotic process automation (RPA) is already in play, and AI will ramp up its capabilities even further.
Payroll knows better than anyone that the best software in the world won’t help if your data isn’t clean. Every organisation should be focusing on harmonizing data collection and setting up global reporting systems, irrespective of AI.
There is a definite AI ‘bubble’ in the economy, where the expectations of outsized returns are driving massive investment. If those returns disappoint, then the AI bubble could burst, and like the dot com crash 25 years ago, only a few key players will remain in business. However, we know how that went – those companies that did survive emerged as the backbone of the internet economy. Payroll professionals who are familiar with the landscape of AI tools will be well positioned to advise their company on where to invest their time and money, and what’s not worth the hype.
As more tedious tasks are automated, payroll professionals are going to take more consultative and strategic roles with a human touch within an organisation. AI isn’t guaranteed to understand context, nuance or human whims. But payroll professionals who have a solid understanding of what AI is — and isn’t — will be well-prepared to advise on the company’s AI efforts.