Richard Kenyon, Associate Director of AI at Datapay, has been exploring how AI could transform this critical function:
“Our goal is to enhance accuracy and alleviate stress through AI and automation. By integrating AI into payroll systems, the aim is to address inefficiencies, automate routine tasks, identify exceptions, optimise workflows and improve communication.”
For organisations like schools that face complex payroll challenges, AI has the potential to transform payroll operations by reducing processing times, increasing accuracy and alleviating pressure for payroll teams.
Richard highlights three key areas where opportunities and challenges exist for AI to reshape the payroll landscape:
- Efficiency vs reliability: AI has the potential to boost efficiency while maintaining accuracy, identifying exceptions without compromising core calculations.
- Automation and security: AI can enhance security by automating tasks and minimising human error — but it must follow strict security protocols to safeguard sensitive data.
- New skill sets: By automating routine tasks, AI empowers payroll practitioners to focus on more strategic activities that require new skills and continuous training.
AI can also play a valuable role in payroll communications, for example by ensuring complex legislative language is expressed in plain English without losing meaning. Richard emphasises that while trained professionals remain essential in the payroll communication process, AI can expedite workflows, transforming them from researching and writing to reviewing and validating, making payroll communication more efficient and effective.
For further insights, check out our ebook How AI will reshape the payroll landscape, where Richard discusses AI's potential impact, use cases, challenges for practitioners and future opportunities.
How AI will change the payroll landscape
