How AI Will Transform PayrollJBallentine
Considering that here on Brain Payroll we have already talked about how emerging trends in payroll systems are working to solve problems brought about by technology, it should come as no surprise that artificial intelligence (AI) is also making its way to the field. With AI’s capabilities, problems like data entry and dealing with system errors could become a thing of the past. In this article, we will talk about AI’s growing presence in payroll systems and the various benefits it can produce.
Given its growing prevalence, of course, it is no surprise that Accounting Today predicts that the use of AI in accounting will grow in 2019. The biggest benefit of AI is that it goes beyond simple computing and can even aid in decision-making crucial to business operations. AI can do this by analysing payroll data and determining just how many employees are constantly working overtime. Based on this, the software can recommend if it is time for the company to start considering a new wave of hires. Instances such as these increase the likelihood that payroll and HR functions are likely to merge, giving us a peek at the future direction AI is set to take.
Similarly, belief in the power of AI to transform payroll is further backed up by Accounting Web. In their article, it is explained that AI will enable advanced payroll platforms to also manage rotas all on the same system. With this, businesses can maximise cost and performance by building rotas that take into account various factors like stress profiles, working patterns, leaves, and availability. Even external factors like the weather and holidays can be accounted for, which will increase accuracy when predicting future staffing requirements and enabling businesses to hire accordingly.
AI can even help businesses in ensuring continuous compliance: future payroll systems infused with AI can track any changes in tax laws and alert business owners accordingly. Not only that, many existing payroll systems already have features that automate compliance, thereby reducing the amount of manual work that needs to be done. Considering the time it takes to understand and apply changing tax and finance regulations, the time saved by AI-enabled continuous compliance shouldn’t be underestimated.
In fact, the use of AI in payroll is just one instance of how technology is becoming prevalent in the workforce. Small Business UK cites how even small businesses are using apps to streamline processes, with accounting apps that offer expense tracking and payroll services becoming more and more popular. Likewise, Verizon Connect describes how fleet companies are using the latest GPS technology to “automate the process of recording work done by individual employees.” This ensures that employees are getting paid correctly for the amount of work they are doing and reduces the chance of any human error in the payment process. Functions such as these also greatly reduce the time spent on administration tasks, allowing for employees and business owners alike to focus on other aspects of their work.
In conclusion, the examples cited above show how technology like AI is paving the way for massive changes in payroll. These changes will not only change how employees are paid in future, but also how businesses are set up.