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planning with real- time compensation data. These insights are already embedded in payroll data; they just haven’t been easily accessible until now. Moving Toward Maturity There are still challenges: data privacy, trust in AI outputs, and skills gaps all remain barriers to adoption. And while not every organization is there yet (34% still describe their AI capabilities as “developing”), the direction is clear. HR and payroll teams are becoming engines of insight, playing a much more strategic role in the business. With the right tools and the confidence to use them, these teams can do more than deliver paychecks, they can deliver impact. That’s the opportunity in front of us. Click here to access the full report.

Over time, AI agents learn from every cycle, building specialist knowledge and improving performance with each run.

What Makes AI Agents Different AI agents are distinct from generative AI copilots, which act as responsive assistants. Copilots help when prompted. Agents operate continuously. They analyze data in the background, adapt to new conditions, and take action on their own. In payroll, an agent might spot a spike in overtime, correlate it with seasonal demand, and suggest a staffing adjustment. Another could detect a potential compliance risk before it causes problems. Over time, AI agents learn from every cycle, building specialist knowledge and

improving performance with each run. It might sound like futuristic hypotheticals, but it’s the direction HR and payroll are already heading. A Smarter Payroll Function The value of payroll is no longer limited to processing pay on time. With AI and better access to data, payroll can now surface insights that support business decisions. Think about identifying burnout risks early through overtime patterns, spotting retention issues tied to pay equity, or informing workforce

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ISSUE 15 GLOBAL PAYROLL MAGAZINE

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