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works well today is with removing repetitive work like calculations, reconciliations, reporting, flagging inconsistencies and improving the inputs so that errors are flagged as soon as possible – that’s what we’re building at Employment Hero. We’ve seen customers reduce HR and payroll administration by 80% through automation. However, where it often falls short is fragmentation. If your systems don’t talk to each other, AI just moves messy data around faster. I’d say one of the top reasons employers come to us is because they want an all-in-one platform. AI is only as good as the data underneath it. If you don’t have a single source of truth, you don’t get smarter outcomes, you just get quicker errors. Chevonne Wild: Our policy team responded to the ‘Call for Evidence - AI in financial services’ (https://ow.ly/72Tf50Yos5i) in March 2025, and held a Think Tank with members to hear more about how they’re using AI in their working practices. Many members are using AI in the following ways: l chatbots, to resolve employee questions related to their organisation’s policies and procedures, being taught by user guides, policies and handbooks l report generation l comparison exercises / data analysis / checks and balances l executive / board level summaries, to include patterns and modern slavery detection l data analysis. For those using AI in the ways described, they’ve reported saving hours of time that would have been spent on manual work. Generative AI platforms are helping members with research, rewriting scripts and coding for applications they use. Currently, members are using AI with caution, predominantly using it in the form of chatbots and reporting. When it comes to the compliance-based calculations the payroll industry is governed by, members are cautious and concerned regarding data breaches and General Data Protection Regulation. Q: Do new pay methods genuinely improve employee financial wellbeing, or do they introduce new payroll and regulatory risks? KF: They can absolutely improve wellbeing if they’re implemented properly. Earned wage access (EWA) is a good example. It gives employees the option of accessing
a portion of what they’ve already earned if an unexpected expense arises. We’ve seen strong feedback from both employers and employees on our platform who value that flexibility. The important bit is structure. In our case, we advance the funds and the pay run itself isn’t disrupted. Payroll processes as normal which means there’s no additional compliance risk or reporting complications. However, problems can creep in when new pay methods are layered onto fragmented systems. If it’s properly integrated, it should reduce stress for employees without creating new risk for employers. CW: EWA or ‘pay on demand’ solutions are still Marmite in the UK. At the CIPP, we have the EWA Code of Practice on our website (https://ow.ly/Jz4C50Yosb8). We encourage organisations considering the introduction of EWA to read the code to better understand what providers can, and should, be doing to deliver good consumer outcomes. “The future of payroll isn’t humans versus artificial intelligence. It’s humans using artificial intelligence well” We always encourage any organisation considering using EWA to implement it alongside a range of financial wellbeing solutions and strategies, like how to budget and forecast. Q: Are organisations investing enough in payroll-specific cybersecurity, or is payroll still relying too heavily on generic IT controls? KF: Payroll is one of the most sensitive datasets in any business. Our data found that a third of payroll professionals say they’re concerned about data security and privacy when adopting automation. But again, it all boils down to fragmentation. When there are multiple systems, various access points and duplicated data, vulnerabilities creep in. The more consolidated your system, the stronger your security posture. Q: How does the ‘customer service’ element of payroll evolve in a digital world? Does technology enhance or dilute it? KF: It enhances it. Right now, payroll professionals spend an awful lot of time
troubleshooting errors and revising data. That’s time lost to administration. If AI and automation take care of the heavy lifting, payroll teams get that time back to focus on the human elements of their work – supporting employees, advising leadership and spotting risk early. Technology makes the hard, repetitive parts easier. It doesn’t replace empathy, communication or accountability. In fact, the more automated payroll becomes, the more visible the human expertise becomes. MM: Self-service portals, AI chatbots and automated FAQs improve response speed and reduce repetitive queries. That allows payroll professionals to focus on complex, sensitive or high-impact cases. However, payroll remains personal. Pay errors affect trust. Sensitive matters such as statutory leave, deductions or hardship situations require human judgment and reassurance. The evolution I see is layered: l automation for routine enquiries. l skilled payroll advisors for complex cases. l clear escalation pathways for high-risk matters. CW: Payroll is often known as a numbers game, but it’s a deeply people-oriented profession, and should be known as a people game. Payroll will always need a human touch, making soft skills an essential requirement. If there’s an employee shouting at you on the phone because their pay isn’t what they expected, they need a human with empathy to explain why their pay has changed, and what (if anything) can be done to resolve any errors. As the Team Leader of the Advisory Service at the CIPP, we support our members with their queries every day. No robot or AI tool will ever be able to replace the value in what our team does. Q: If someone is starting their payroll career today, what mix of technical, digital and soft skills will set them up for success over the next five years? KF: First, understand the fundamentals. Compliance, legislation, reporting. That doesn’t go away. Second – be digitally curious. Don’t be intimidated by AI. Experiment with it and understand what it can and can’t do. The professionals who lean into technology will move faster. And finally, remember the importance of judgment and communication. AI can
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