Efficiency and Productivity with AI Top of Mind for Multinational Companies in 2025: ADP Report

13 May, 2025

Digital transformation is revolutionising payroll starting with multinational companies, which are prioritising artificial intelligence, automation and productivity

Potential of Payroll 2025 report shows that AI is on the minds of Singapore’s multinational companies, with close to one-third (32%) seeing AI as the main driver of transformation.
Half of multinational companies surveyed (51%) are considering using AI to manage payroll with fewer staff, with workflow automation being a top priority to transform payroll systems.

Singapore, 13 May 2025 – Multinational companies around the globe are seeking improved efficiency, productivity, and digital transformation to address critical challenges such as talent acquisition, equal pay, and transparency, according to ADP’s annual report, The Potential of Payroll 2025.

Among the strategies adopted globally, investments in training, the reorganisation of payment methods, the standardisation and automation of processes, as well as the integration of artificial intelligence (AI) emerge as significant. In particular, close to one-third (32%) of multinational companies surveyed in Singapore identify the implementation of AI as the primary benefactor to improve payroll operations' transformation in the coming years.

Jessica Zhang, Senior Vice President of APAC at ADP, said, “AI is transforming payroll from a back-office function into a strategic asset. To maximise its benefits, businesses should look to integrate AI with broader goals, ensure data security, and embrace human-AI collaboration to allow HR and payroll officers to focus on higher-value work.

“Upskilling employees is key – companies that invest in both technology and workforce development will build a more agile and future-ready organisation,” added Zhang.

AI and automation: Key tools for the future of payroll

Half of Singapore’s multinational companies surveyed (51%) consider using AI to manage payroll with fewer staff, and 49% aim to replace manual processes with automated solutions. This transition is essential to improving workflow, speeding up repetitive tasks and optimising complex processes such as data analysis.

Respondents would like to see many benefits from transforming their companies' payroll management systems, and many of them again emphasise the importance of efficiency. Improving workflow automation is Singapore businesses’ top priority (34%). Other key productivity drivers include streamlining payroll processes (31%), consolidating multi-country payroll reporting (28%), and improving access to greater reporting and analytics capabilities (28%).

Evolvingglobal expectations

Globally, introducing AI and automation in large multinational companies does not mean payroll professionals will be out of work. On the contrary, there will be many things to do for implementation, especially in the short term.

When payroll leaders were asked what tasks, they would like payroll teams to do more, the top answers from around the world were:

Integration of new or emerging technologies (57%).
Business process improvements (55%).
Data analysis (54%), a natural consequence of the first two, thanks to the greater insights provided by AI and the time recovered with automation.
Spend more time on strategic planning, a value-added and intellectually stimulating activity (53%).

These results highlight the company's growing expectations of payroll teams, who will increasingly have to focus on activities with high strategic value. To ensure success, payroll teams may spend less time on operational tasks such as data entry, reconciliation management, reporting, and employee requests. Many companies have already automated these tasks, while almost all others have stated they want to do so.

To access the full Potential of Payroll 2025 report, please click here.

ENDS

About ADP (NASDAQ – ADP)

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Media Contacts:

Ying Wang
PR & Brand Voice Manager, ADP APAC
ying.wang@ADP.com

Trisha Koh
Archetype Singapore
adphubap@archetype.co