AI Elevates Payroll’s Workforce Value, ISG Says
Robust platforms give companies more visibility, agility to meet employee needs and changing regulations, new research says
The ISG Buyers Guides™ for
“Payroll technology is a strategic investment in business resilience and workforce stability,” said
Large organizations need centralized visibility and control to support diverse, often global workforces, including remote employees and contractors in regions with different regulations, the research finds. Providing a positive employee experience increasingly requires intuitive self-service tools that help to support financial wellness through features such as on-demand pay and personalized statements. Solutions for delivering all these capabilities are built on unified data models that eliminate silos between payroll, human resources and finance to create a single source of truth. They go beyond core processing, providing increasing degrees of insight, configurability and operational control.
Leading payroll management systems are incorporating AI, machine learning (ML) and intelligent automation to meet these growing requirements, ISG finds. A growing number of enterprises use proactive anomaly detection powered by AI and ML to flag errors before payroll runs, preventing expensive re-runs. By 2028, half of all enterprises will use payroll platforms that use AI to identify mistakes and omissions and notify managers to resolve them, the research finds.
Enterprises are also turning to payroll managed services, which offer a hybrid model that enable companies to manage payroll in-house while using optional expert assistance for tasks such as compliance, tax filing or full-service payroll execution, ISG finds. This model gives enterprises operational control with the flexibility of tapping into scalable, specialized support as a safety net without switching providers.
For its 2025 Buyers Guides for
ISG rates software providers in five evaluation categories: Overall, Product Experience (incorporating Capability and Platform) and Customer Experience. Providers ranked in the top three for each evaluation category are named as Leaders. Within each platform category, those with the most Leader rankings are named as Overall Leaders.
The Overall Leaders of the 2025 ISG Buyers Guides for
Payroll
Global Payroll: ADP was the top Overall Leader, followed by Oracle and UKG. ADP was designated a Leader in five evaluation categories, Oracle in five and UKG in four. All three Overall Leaders were rated Exemplary, along with Dayforce, SAP and Workday.
“Organizations need payroll platforms with configurability, insight and operational control as regulations and employee needs constantly evolve,” said
The ISG Buyers Guides for
Visit this webpage to learn more about the ISG Buyers Guides for
About ISG
ISG (Nasdaq: III) is a global AI-centered technology research and advisory firm. A trusted partner to more than 900 clients, including 75 of the world’s top 100 enterprises, ISG is a long-time leader in technology and business services that is now at the forefront of leveraging AI to help organizations achieve operational excellence and faster growth. The firm, founded in 2006, is known for its proprietary market data, in-depth knowledge of provider ecosystems, and the expertise of its 1,600 professionals worldwide working together to help clients maximize the value of their technology investments.
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