As of now, it’s not difficult to imagine a world run by robots. In fact, a world managed by robots is just around the corner, and just like automation and the internet before it, AI will revolutionize the way every industry works – payroll included. Although the word “revolution” is often overused, it’s a near certainty that Artificial Intelligence (AI) managed payroll services will be exactly that.
The cloud-based payroll software market, valued at roughly $7.88 billion in 2018, is expected to surge to $13.37 billion by 2026. When analyzing this progress of AI into 2021 & beyond, AI is predicted to change the future of payroll in the following ways.
Upskilling Opportunity For Payroll Professionals
One of the major drawbacks of any payroll system is the excessive time spent manually inputting and managing data. These tasks split the focus and upskilling opportunities for HR professionals significantly. Thankfully, AI can improve a payroll system’s functionalities and capabilities, cutting down on the time-consuming processes within the work routines of HR professionals.
When HR professionals spend less time managing figures & data, it gives them opportunities to upgrade their strategic skills and analytically focus on other essential business functions like finance, employment law, and other sensitive HRM functions like training, benefits management, and employee development.
With AI, HR professionals will also get adequate time and focused opportunities to reimagine how they interact and effectively influence an organization’s human resources. Also, when HR professionals update their skills or educate themselves on how to use AI effectively, they can be retrained to utilize AI to facilitate the accuracy and efficiency levels of specific tasks in their respective job roles.
Error Correction and Prevention
As we all know, payroll processing is inevitably bound to coordinating and managing data that is consistently subject to shifting legal compliances. Thankfully, AI intervention in payroll systems can take away this sensitive burden. AI-powered payroll systems can manage procedural data and automatically update and apply compliance regulation to payroll processes. Likewise, it aids in significantly reducing both the likelihood and severity of human errors that can result in legal non-compliance. When considering this influence in-depth, AI technology helps keep your payroll processes from committing sensitive legal mistakes that could be subject to fines and additional complications.
Enhanced Compliance Management
Compliance management is a critical framework of the payroll ecosystem. Although recent cloud-based payroll solutions have taken a strategic approach in aiding compliance management through error prevention, AI-powered features have the potential to upgrade this compliance even further. With the help of AI, payroll systems can instantly track changes in payroll regulations and legislatures and send timely reminders such as paying taxes and complying with other specific payroll rules when needed.
In addition, AI also helps organizations derive in-depth and meaningful insights from any payroll legislative changes made and update them to the system accordingly. This way, organizations will no longer have to deal with outdated compliance management in their payroll and go through related risks. Moreover, the instant legislative update concerning payroll policies also helps organizations identify bottlenecks and look at devising strategies and solutions to tackle any associated problems at an early stage.