04:05 GLOBAL
into the ecosystem. Three dimensions that stand out here are: 1. Decision Transparency: Payroll professionals need clarity on why an anomaly was flagged or a deduction recalculated. Black-box logic may satisfy speed, but not auditors, or employees who understandably want to know why their net pay changed. 2. Algorithmic Fairness: AI models trained on historic payroll outcomes can unintentionally replicate disparities. For example, overtime allocation patterns or assignment allowances design demands active monitoring to ensure the same technology that streamlines global pay does not entrench pay gaps. 3. Human Oversight: Global payroll is deeply human, even when automated. AI can propose adjustments, but ultimate authority must rest with the trained professionals, not only for accuracy but may reflect past inequities. Ethical
also for legitimacy. The fastest route to employee distrust is an AI-generated payslip that no one can defend. Privacy at Scale: Payroll’s Strategic Risk Zone Payroll holds some of the most sensitive employee data in the enterprise: income, bank accounts, family status, and tax identification numbers, to name a few. Layer in AI tooling and multi- country data traffic, and privacy becomes both a compliance and reputational minefield. Data sovereignty rules differ across regions: GDPR, PDPA, LGPD
and numerous national privacy frameworks. AI systems that centralise or process payroll data in the cloud must respect localisation requirements and ensure encrypted transit and storage. Equally crucial is minimisation of access to relevant data: intelligent systems should only consume the data strictly necessary for payroll accuracy. Perhaps the biggest emerging risk is inadvertent data drift, where aggregated payroll AI models, trained across regional datasets, expose patterns or identifiers beyond the intended scope. Guardrails must be proactive, not reactive.
Perhaps the biggest emerging risk is inadvertent data drift, where aggregated payroll AI models, trained across regional datasets, expose patterns or identifiers beyond the intended scope. Guardrails must be proactive, not reactive.
74 I 04:05
GLOBAL PAYROLL MAGAZINE ISSUE 17
Made with FlippingBook - Share PDF online