Recently, with the hype of ChatGPT, artificial intelligence has regained the attention of almost every industry. According to a poll, 70% of respondents said they are currently exploring the potential of AI, while 19% said they are in pilot or production mode.
Needless to say, the global payroll industry has not been immune to the allure of AI. In fact, what we are experiencing today is a complete AI payroll revolution.
So, how is AI revolutionizing pay? That's what we'll cover in this blog post.
With the rise of the gig economy and the changing look and feel of the global workforce, flexibility and scalability have become key elements of a successful payroll strategy.
It is because of this shift that the global HR payroll software market is expected to grow at a price of 3030 from 2022 to 92% CAGR growth. By 2033, it is expected to reach 157$300 million.
Part of this development is the use and implementation of artificial intelligence, which allows businesses to seamlessly track invoices, store important documents, and ** future workforce hiring needs.
Compliance continues to be a top concern for payroll professionals managing employee compensation worldwide. With regulations, labor laws, and tax laws changing frequently, payroll teams need to be constantly informed of any changes to requirements. Any mistakes or discrepancies can result in hefty fees and penalties.
With the advent of AI payroll tools, compliance has become easier to maintain:
l The calculation is done automatically, and there is no risk of human error.
Audit trails are generated immediately.
Any discrepancies found will be flagged and corrected.
With these features, adapting to new laws and regulations becomes more efficient.
Data analytics is key to developing a successful payroll strategy. Today, 48% of businesses are turning to AI to improve their data analytics capabilities, according to PricewaterhouseCoopers (PWC).
When it comes to payroll data, AI can provide:
l Better verification ability.
l Real-time insights.
l Anomaly detection.
l Cost allocation.
l and custom reports.
Payroll migration is one of the most bumpy payroll processes today, with 15% of processes failing completely and 44% leading to problems of one kind or another. This is almost always a headache for payroll departments – especially those that manage a global workforce.
The right AI software can alleviate the hassle by reducing the errors involved and speeding up the process.
AI is also revolutionizing wage payments – especially cross-border transactions. AI tools enable a streamlined, centralized payment process with real-time monitoring and an auto-generated audit trail.
From a security perspective, the right AI technology can instantly flag any discrepancies and ensure a more robust AML, KYC, and fraud detection process.
Artificial intelligence is transforming global payroll and workforce management in a variety of ways, and there's no doubt that this technology is a game-changer for the industry in terms of both efficiency and cost control.
Still, as the saying goes, a sword is only as good as the person who uses it.
You can have all the AI capabilities in the world, but if you don't have the right expertise at hand, you could run into all the hurdles and obstacles you wish to avoid.