East African firms turn to AI to cut workforce management costs

Nairobi, Kenya - East African enterprises are turning to artificial intelligence (AI) systems to streamline workforce management, as companies strive for enhanced productivity, cost reductions, and efficient expansion. The technology is being employed across the spectrum of human resource management, from recruiting and employee scheduling to performance tracking, payroll processing, and workforce analytics, representing a gradual transition from manual to automated processes.

At the inaugural Future of Commerce Summit, Factorial and Glovo Kenya discussed how AI-enabled systems are enabling swifter staffing decisions and boosting operational efficiency. Fredrick Githendu, Partner Manager at Factorial, highlighted the role of AI in smart hiring, real-time employee coaching, automated document processing, scheduling and reporting.

A presentation titled "The Hidden ROI: How AI in People Operations Fuels Fast-Moving Commerce" showcased potential efficiency gains from Factorial One, the AI-powered workforce management platform. Businesses utilizing the platform reportedly saved up to 15 hours weekly on employee rosters, achieved 75 percent faster CV screening, and cut report preparation time by 90 percent.

The platform consolidates payroll, talent management, performance monitoring, and workforce analytics into a single system. Glovo Kenya's expansion, which saw its workforce quadruple from 33 to over 100 staff in four years, necessitated more efficient employee management systems. Caroline Mutuku, Glovo Kenya Country Managing Director, emphasized the importance of smarter, faster, and more connected methods of managing a growing workforce.

The trend toward digital human resource systems is driven by the need to improve productivity while navigating complex employment and compliance requirements. According to Deloitte's 2025 Africa Human Capital Trends report, over 60 percent of medium-sized enterprises in major African cities have adopted at least one digital human resource tool.

The payroll technology market in Africa, currently valued at USD 487.3 million in 2026, is expected to expand to USD 1.66 billion by 2035, driven by factors such as increasing cloud adoption, regulatory compliance demands, and the proliferation of mobile-first business infrastructure. However, wider adoption of AI in workforce management also raises concerns about implementation costs, data protection, employee privacy, and the feasibility for smaller businesses to integrate AI into their existing operations.

Factorial, which has been expanding its footprint in African enterprise markets, recently secured $150 million in Series D funding, bringing its valuation to $2.5 billion.