Artificial intelligence (AI) is set to revolutionise payroll operations in Singapore, with 32% of multinational companies identifying it as the primary driver of transformation, according to ADP’s latest report, The Potential of Payroll 2025. The report highlights that AI adoption is crucial for enhancing efficiency and productivity in payroll systems.
The survey reveals that half of Singapore’s multinational companies are considering using AI to manage payroll with fewer staff, whilst 49% aim to replace manual processes with automated solutions. Improving workflow automation is the top priority for 34% of businesses, followed by streamlining payroll processes (31%) and consolidating multi-country payroll reporting (28%).
Jessica Zhang, Senior Vice President of APAC at ADP, emphasised the strategic importance of AI in payroll, stating, “AI is transforming payroll from a back-office function into a strategic asset. To maximise its benefits, businesses should look to integrate AI with broader goals, ensure data security, and embrace human-AI collaboration.”
Globally, the introduction of AI and automation does not imply job losses for payroll professionals. Instead, it presents opportunities for integrating new technologies, improving business processes, and enhancing data analysis capabilities. Payroll teams are expected to focus more on strategic planning, with 57% of leaders prioritising technology integration and 55% seeking business process improvements.
As companies continue to automate operational tasks, the role of payroll teams is evolving to meet higher strategic expectations, ensuring they remain valuable assets in the digital age.
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