AI in payroll can no longer be considered a future technology – it’s here right now. Tools such as automation, analytics, and real-time capabilities bring accuracy, assistance, and assurance to people processes. However, as Steve Elcock, Director of Product – AI and HCM, highlighted at the IPASS Annual Conference, we should remain cautiously optimistic about using the latest AI techniques to improve payroll productivity – ensuring their deployment is both ethical and responsible.
In this blog
How AI in payroll improves operations
Establishing clear governance and ethical policies
AI adoption in Ireland
In late 2024, the Department of Enterprise, Trade and Employment launched a refresh of Ireland’s first National AI Strategy. The department is actively contributing to the EU AI Act and commissioning a landmark study on the potential impacts of AI on key economic sectors, showing that Ireland aspires to be at the forefront of developments in AI technology and regulation. The strategy, called “Here for Good,” includes a national awareness campaign for Irish businesses about the benefits of AI adoption and available supports.
The AI Economy in Ireland 2025 report, released in College Dublin and Microsoft, estimates that AI could add €250 billion to Ireland’s GDP within 10 years. It also reveals that Ireland’s AI adoption has skyrocketed to 91%, almost double that of 2024, placing the country ahead of many EU counterparts.
However, according to the report, there’s a growing divide between local organisations and multinationals when it comes to integrating AI into their operations in some form, at 40% and 63%, respectively. Barriers for local companies include limited access to AI expertise, high costs, and uncertainty around implementation. Despite the increased adoption, no small organisations reported having an “AI-first” policy. There’s no denying that Irish businesses need to pay heed to AI as an enabler to avoid missing out on future opportunities.
How AI in payroll improves operations
Automation, data insights, predictive analytics, fraud detection, compliance monitoring, and streamlined invoice management are some of AI’s capabilities. Examples of the tools available in an effective AI payroll platform include:
- Intelligent anomaly detection and automated data validation that lets you eliminate errors before payday
- Intelligent chatbots to smartly handle employee queries on pay, tax, or leave
- Continuous compliance monitoring for timely alerts on potential regulatory issues
Businesses can use these AI tools to embed accuracy, assistance, and assurance into payroll processes. You can turn tedious tasks into automated workflows, which is particularly helpful at crunch times such as month-end payroll or year-end tax processing that can be seriously stressful.
Automating routine tasks lessens the burden on your HR and payroll teams, giving them freedom to focus on more strategic and transformative work rather than manual data entry. The AI-based software also allows them to adjust easily to workforce changes and keep mission-critical tasks running during absences. Ultimately, HR and finance teams can make smarter decisions and maximise business agility and resilience with data-driven insights.
AI can also boost the financial wellbeing of your employees, by helping them to better understand their pay with contextual information from payroll explainers that are available 24/7.
Establishing clear governance and ethics policies
While AI brings many benefits, its implementation must be guided by strong governance and ethical practices to ensure responsible use. As Steve Elcock, Director of Product – AI and HCM, noted at the IPASS Annual Conference, this balance means we should be cautiously optimistic – embracing AI’s potential to boost payroll productivity, while remaining mindful of its risks.
To deploy AI tools responsibly, organisations should establish clear policies that specify how employee data is handled, which tasks AI should and should not manage, and how to ensure compliance with data regulations such as GDPR. These policies help prevent AI misuse or unintended consequences, ensuring that payroll operations run smoothly.
Security also plays a critical role in AI adoption. Before introducing external AI tools to your organisation, it’s essential to review your AI vendor of choice, to ensure that their offering is safe, secure and aligned with your company’s policies. Rather than adopting OpenAI tools like ChatGPT, which may use your data for training purposes, consider investing in ring-fenced AI models, like ELLA. These models protect sensitive information with authentication and authorisation across all data assets, ensuring that payroll data remains confidential and accessible only to authorised individuals.
As Steve outlines, AI remains a “hyped” and rapidly evolving area. This fast pace can lead to misunderstandings about its capabilities and risks. That’s why it’s critical to stay informed, cautious, and intentional – ensuring every use of AI enhances operations without compromising safety and security.
Conclusion: Adopt AI in payroll to stay ahead of the game
As noted in our blog on Ireland’s HR and payroll landscape, AI, automation, and other technologies are the industry’s top external drivers of change. A CIPD report also highlighted growing digitalisation, particularly in the use of virtual-based learning, automated processes, and analytics. Harnessing AI to promote data accuracy in payroll, provide assistance to your employees and HR teams, and add assurance to your operations is the intelligent move, granted that it is done responsibly.
“AI is a complete game-changer that’s revolutionising payroll processing and HR across the board. Long gone are the days of cutting payroll checks with a two-week wait time; it now needs to be immediate and accurate. Effective use of AI in payroll empowers employees, enhances operations, and provides a major competitive advantage.”
Seán Murray, Director of Product Services Ireland, Zellis
Key takeaways
- The Irish Government’s National AI Strategy is driving AI adoption in Ireland, which has surged to 91%, with research estimating that AI could contribute €250 billion to GDP within 10 years.
- AI capabilities include automation, data insights, predictive analytics, fraud detection, compliance monitoring, streamlined invoice management, and real-time payroll.
- Technology tools such as automated data validation, intelligent chatbots, and continuous compliance monitoring help provide accuracy, assistance, and assurance.
- AI can automate routine processes, improve employees’ financial wellbeing and engagement, and free up HR and payroll teams for higher value-add tasks.
- By deploying advanced AI payroll technology, organisations can empower employees, enhance operations, and gain an edge over their competitors
- To ensure AI is deployed responsibly, organisations should establish clear governance and ethics policies.
Join Ireland’s payroll evolution
Zellis’ AI-enabled solution solves numerous use cases within the payroll context, from explaining payslips to detecting payroll anomalies. See how you can adopt AI to drive efficiency and effectiveness in your payroll processes.
