India is becoming a key player in integrating artificial intelligence (AI) into payroll operations globally, with 34% of Indian organizations planning to implement AI in the near future, according to a report by HR solutions provider ADP. The report highlights that AI is increasingly used in India for various payroll functions, such as automating workflows, data entry, and tax calculations.
Moreover, AI is being explored for other aspects of payroll management, including audits, compliance, and data validation. Rahul Goyal, Managing Director of ADP India and Southeast Asia, emphasized the importance of AI in enhancing data integrity, regulatory compliance, and governance in payroll processes.
In the Asia Pacific region (APAC), organizations are facing skills shortages in their payroll teams, with 80% of them considering ways to streamline payroll operations with fewer staff. Reskilling and upskilling initiatives are being prioritized to address these challenges, as 74% of payroll leaders in APAC have already felt the impact of staff shortages on their operations.
The report also reveals that nearly half of the surveyed organizations are looking into AI to support more efficient operating models, with 33% viewing AI as a key driver of payroll transformation in the next 2-3 years. AI applications in detecting fraud, expediting report generation, and automating data entry are gaining traction among organizations.
Concerns around data security regulations are hindering AI adoption, with 79% of organizations citing this as a barrier. Additionally, more than half of the respondents expressed the need for payroll teams to dedicate more time to enhancing data security practices through the implementation of new policies, safeguards, and continuity plans.
