TECHNOLOGY
“If AI is going to play any role, it should be one of identifying inconsistencies, thereby reducing the chances of human error, and freeing up professionals’ time to focus on complex issues”
which could continue to improve as developments and advancements occur. For example, the speedy rise of chatbots (such as ChatGPT) has helped to answer day-to-day queries, saving human interaction time. This will no doubt only go from strength to strength in future, meaning the time spent dealing with certain issues will undoubtedly reduce. It’s important to note though, that AI will never be able to decide the route to be taken, but only to recommend and set out facts. Subsequently, human input will still be essential. Cyber-security considerations When there’s any increase in technological dependency, there’s always going to be reservations, but a big part of AI’s success is going to be the upkeep and management of cyber-security. Creating boundaries for accessing data is going to be even more important, and in the digital era, the threat of cyber-attacks, data breaches or identity theft is going to place enormous emphasis on controls and procedures being watertight. The education and training of this is going to be paramount, especially to payroll teams, and perhaps even extend to the need to create exclusive roles to support payroll data protection. As cyber-attacks become more focussed and intelligent, those tasked with acting as the defence need to be kept fully up to date and educated, as techniques evolve and become more intelligent. Although there’s a tough economic climate out there, AI technology becoming ever-increasingly available makes it an exciting time to refresh business operations and strategy. Whether you’re a tax or payroll professional, the dynamics of post-pandemic flexible working, international working, varied compensation, contractor management and many more trends will make workplaces in 2023 and beyond more varied than they used to be. And, excitingly, payroll is one of the functions which ties these aspects together. AI is, therefore, a great opportunity for teams to let go of traditional processes and allows staff to undertake roles for issues which require a human lens for the foreseeable. If AI isn’t being looked at yet, it would certainly set organisations at an advantage to understand how it can now help teams to excel in the future. n
mean for products or services? And could competitors look to take advantage of AI to increase their market share to the detriment of others? The questions are endless and will only grow more in time. However, what’s important is that every business should now look to understand AI as an opportunity and analyse its impact to them to ensure continuity and a prosperous future. Within the accounting industry, there’s going to be an impact on various aspects of products and services, whether this directly affects the provision of accounting software or potentially businesses looking for regular guidance and advice. What is predictable is that there’s going to be a need to apply AI to create further efficiencies, streamline processes and expand the skills of any workforce. Payroll is the perfect place to use AI If we look at payroll as an example, any aspect of a business which involves the use of large streams of data and repetition is going to be a prize pick for applying aspects of AI. Payroll is a function which “Those responsible for an organisation’s strategic goals should be looking to carefully understand the impact this rapid technological advancement will have on various markets”
is utterly crucial to any organisation and tends to contain the ‘unsung heroes’. Often, people tend not to thank a payroll department for processing their correct net pay each month or for paying them on time. Instead, negative attention is drawn when something falls down or one in a thousand tasks didn’t quite go to plan. As a result, if AI is going to play any role, it should be one of identifying inconsistencies, thereby reducing the chances of human error, and freeing up professionals’ time to focus on complex issues. Regarding the latter point, any experienced professional knows that a more successful outcome is achieved by consulting when facing difficult issues. Most payroll data may be rolled forward monthly as part of business-as- usual tasks, but complexities arise when specific employment income needs processing for an individual, for example, involving a termination payment or equity compensation. There’s also going to be different types of payroll to consider which will need a closer review, such as modified or shadow payrolls for expatriates working across borders. AI is also going to have a positive impact on audit activity, with an ability to check any anomalies that arise on an ongoing basis rather than looking back over one accounting period. This presents a good opportunity for payroll professionals to use AI positively to free up their time to focus away from routine processing and more traditional roles. To get there, implementation and testing of AI-related processes should be undertaken across several months to ensure automation is resulting in the correct outcomes, and to guarantee a smooth and secure transition. Many payroll teams will have implemented systems involving cloud payroll solutions or robotic process automation, but given AI is an evolving tool which will look different in time, it’s something
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| Professional in Payroll, Pensions and Reward |
Issue 95 | November 2023
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