AI and automation poised to revolutionise payroll, empowering HR strategy
- Josephine Tan
Multinational companies are accelerating payroll transformation by embracing AI, automation, and employee upskilling, according to ADP’s latest report, The Potential of Payroll 2025. As organisations face mounting challenges around talent acquisition, pay equity, and workforce transparency, payroll is emerging as a strategic function rather than a purely administrative one.
In Singapore, 32% of multinational companies identify AI as the top enablers for improving payroll operations over the next few years. This reflects a broader global shift as businesses invest in standardising processes, adopting digital tools, and rethinking how payroll supports their overall workforce strategy.
Jessica Zhang, Senior Vice-President of Asia-Pacific at ADP, said AI is fundamentally reshaping payroll by allowing businesses to move beyond manual tasks and focus on higher-value work. “To maximise its benefits, businesses should look to integrate AI with broader goals, ensure data security, and embrace human-AI collaboration,” she said.
Zhang also emphasised the importance of upskilling employees, noting that companies that invest in both technology and workforce development will be more agile and future-ready.
The ADP report highlighted Singapore’s strong inclination towards leveraging AI and automation within payroll. A significant 51% of surveyed multinational companies in Singapore are exploring the use of AI to manage payroll with a leaner workforce, while 49% are actively seeking to replace manual processes with automated solutions. This strategic transition is deemed essential for streamlining workflows, accelerating repetitive tasks, and optimising complex processes such as in-depth data analysis.
When asked about the desired outcomes of transforming their payroll management systems, efficiency emerged as a top priority for businesses in Singapore. Specifically, improving workflow automation (34%) ranked highest, followed by streamlining payroll processes (31%), consolidating multi-country payroll reporting (28%), and enhancing access to comprehensive reporting and analytics capabilities (28%).
READ MORE: From AI to employee wellbeing: ADP reveals HR priorities for 2025
While AI and automation are expected to reduce repetitive tasks, they are also fundamentally reshaping the role of payroll professionals. Rather than replacing payroll teams, these technologies are creating new opportunities for professionals to contribute to higher-value areas within the organisation.
Globally, organisations are increasingly looking for payroll teams to take on more strategic roles that extend beyond traditional administrative duties. According to ADP’s findings, 57% of respondents want payroll professionals to take a more active role in integrating new and emerging technologies, reflecting the growing importance of tech-driven transformation across HR functions.
Additionally, 55% of respondents look to payroll teams to lead business process improvements, while 54% view data analysis as a key area of focus. These responsibilities are a natural extension of the efficiencies gained through automation, as payroll teams gain more time to support strategic decision-making. Notably, 53% of respondents also expect payroll professionals to spend more time on strategic planning, further underscoring the shift in expectations and the expanding influence of payroll in organisational success.
