{
  "id": 10689463,
  "title": "ADP: what 77 years of payroll taught us about AI",
  "url": "https://urgent.news/2026/09/29/adp-what-77-years-of-payroll-taught-us-about-ai",
  "topic": "ai",
  "section": "AI",
  "published": "2026-09-29T12:00:00.000Z",
  "source": {
    "name": "Fortune",
    "slug": "fortune",
    "url": "https://fortune.com/2026/09/29/payroll-ai-automation-human-resources/"
  },
  "original_language": "en",
  "account": "Artificial intelligence (AI) offers a clear promise for payroll and human resources (HR) by reducing manual processes, expediting decisions, and enhancing efficiency. However, hastening the transition to AI without caution can be detrimental. If a company automates a faulty process or removes the human expertise that identifies exceptions, it not only doesn't eliminate errors but actually exacerbates them. Payroll serves as an exemplary case. Employees anticipate being compensated accurately and punctually, while employers must adhere to an increasing number of regulations, often across various jurisdictions. This complex system must remain error-free at all times. The tension between innovation and execution has defined ADP for nearly eight decades. We were among the pioneers of the payroll services industry when businesses were still handling payroll manually. As the industry progressed, we facilitated the transition from manual processing to automated service delivery, were among the first to bring payroll to the cloud, and enabled workforce information availability through mobile technology. Subsequently, we developed an online marketplace that connected clients with a broader ecosystem of workforce solutions. Our business evolved alongside the workforce. Originating as a small business in New Jersey, we expanded into a company supporting over 1.1 million clients in more than 140 countries. Each milestone brought additional capabilities, yet the fundamental challenge remained constant: ensuring those capabilities function effectively for businesses with diverse needs, workforces, and ever-increasing complexities. This history underscores a vital lesson: technology can alter how work is conducted, but expertise is what ensures it works in practice. AI can indeed assist, but payroll has limited tolerance for error. Today's businesses face mounting complexity from various quarters. They manage a workforce spanning countries and work models while adapting to evolving labor laws, pay transparency demands, evolving privacy expectations, and the responsible use of AI. Additionally, payroll professionals bear the brunt of these challenges. According to ADP's Potential of Payroll 2026 research, 75% of payroll leaders consider keeping up with local regulations a significant hurdle, 68% incur penalties for noncompliance once or twice annually, and 69% occasionally overpay employees to avoid a compliance violation. To alleviate this burden, the transformative potential of AI and automation remains at the forefront of payroll leaders' minds. Around half of the surveyed organizations have automated core processes such as data collection (52%), data entry (49%), reconciliations (47%), and reporting (49%). Although they seek methods to improve efficiency, they acknowledge the importance of adopting AI responsibly, balancing advancement with compliance and the employee experience. To utilize AI effectively and accurately, businesses must first ascertain its appropriate application, governance, and the instances necessitating human expertise. Rushing to automate may overlook the crucial layer of human oversight required in AI-driven HR. This oversight could lead to payroll and compliance issues before AI generates any efficiency gains. Interacting with our clients daily has reinforced the notion that new capabilities function best when they augment experienced professionals in their roles. AI can uncover pertinent information, discern patterns, and automate routine tasks. However, people must still comprehend the context, identify exceptions, and discern when an answer is incorrect. The value of AI lies in aiding people to locate information more swiftly, streamline routine work, and respond more efficiently to queries. The objective is to provide people with superior tools and additional time to concentrate on matters requiring human judgment. This distinction is crucial in payroll and HR, inherently human functions where a seemingly minor exception can have substantial repercussions on employees. Human expertise supplies the context and accountability that automated systems cannot. Global complexity necessitates more than technology; it requires a comprehensive strategy. A global payroll transformation might appear straightforward from afar: implement new software, migrate the data, and activate the system. In reality, it is considerably more intricate. Each country imposes its unique tax rules, employment laws, reporting requirements, and local practices. These requirements evolve, and the systems supporting them must adapt accordingly. The true challenge lies in ensuring the entire operation operates cohesively while accommodating the regulations and requirements of each country. This is where experience proves invaluable. Software can interconnect these markets, but people must comprehend payroll, regulations, and local practices, recognize when something appears amiss, and determine the subsequent actions. Integrating these capabilities enables a complex operation to continue progressing as circumstances change. That is also what clients convey they value. They desire tools that simplify their work, yet they also seek assurance that someone understands what occurs when a regulation changes, an exception arises, or an issue occurs. Even as technology progresses, businesses still require assurance of someone behind the system who can effectively assist when a problem emerges. The next chapter: AI + expertise AI will continue to transform workforce management, automating routine work, identifying patterns, and creating novel ways to support employees and managers. Companies that maximize these capabilities will recognize where automation can assume control, where human expertise must intervene, and how to harmonize the two. They will prioritize the human oversight essential to realize the valuable outcomes of AI-driven HR. This is the lesson ADP has gleaned from decades of technological advancements and change. We have transitioned from paper-based payroll to automated processing, from on-premise systems to the cloud, from desktop applications to mobile technology, and now to AI. The technology has undergone significant transformation. However, the responsibility remains constant.",
  "summary": "The next generation of HR technology will depend as much on human expertise and judgment as it does on automation.",
  "key_points": [],
  "editors_take": null,
  "illustration": null,
  "coverage": {
    "outlets": 1,
    "also_reported_by": []
  },
  "ai_generated": true,
  "disclaimer": "Summaries, key points and the editor’s take are written by software from other outlets’ reporting and may contain errors — always check the linked original."
}