Businesses Embrace AI-Driven Payroll Solutions for a Global Workforce

Enterprises seek integrated, scalable, compliant payroll systems that can serve remote workers and provide on-demand wage access

The rise of flexible work models, a growing number of remote employees, and a thirst for automated systems powered by AI are reshaping payroll processes. This shift is detailed in recent research reports from Information Services Group (ISG) III.

The ISG Payroll Management Buyers Guides reveal two significant trends influencing payroll systems. One is the emergence of real-time payroll, enabling employees to access their earned wages immediately. The other is the increasing reliance on AI and machine learning to monitor payroll data, ensuring adherence to local regulations and predicting payroll costs based on past information.

“Dynamic, real-time solutions are essential for managing tax implications when employees work across state and national borders,” stated Matthew Brown, director of Research, Human Capital Management at ISG Software Research. He stressed the need for payroll systems to stay aligned with regulatory changes and support wider HR strategies to reduce risk and boost operational efficiency.

Modern payroll platforms must also foster collaboration with HR and finance departments. The reports emphasize that this integrated approach streamlines workforce management, improving efficiency and communication.

To meet these demands, many organizations are adopting AI- and cloud-based payroll solutions. AI-driven systems analyze local labor laws and automatically integrate that data into payroll calculations to ensure compliance across different regions. Meanwhile, cloud-based systems offer advantages in scalability, flexibility, and security compared to traditional methods, facilitating global management of payroll operations.

Despite the benefits of AI and automation, many enterprises struggle to transition legacy systems to more modern software. This shift can prove challenging, as noted in the Buyers Guides.

Organizations may be overlooking the potential of payroll systems as means for effective communication. These systems can serve as platforms to disseminate important updates, share information about benefits, or highlight key company initiatives. By integrating communication into payroll processes, companies can strengthen their connections with employees.

For its 2024 Payroll Management Buyers Guides, ISG assessed various software providers across five categories: Payroll Management, Global Payroll, International Payroll, Multi-Country Payroll, and U.S. Payroll. They evaluated 24 providers, including ADP, BambooHR, Darwinbox, Dayforce, Deel, Gusto, Infor, isolved, Namely, Neeyamo, Netchex, Oracle, Oyster, Papaya Global, Paychex, Paycom, Paycor, Paylocity, Rippling, SAP, UKG, Unit4, Workday, and Zellis.

ISG Software Research has named the top three providers as Leaders in each category. The leading software providers for 2024 are:

Payroll Management: ADP, Oracle, and UKG

Global Payroll: ADP, Oracle, and UKG

International Payroll: ADP, Oracle, and UKG

Multi-Country Payroll: ADP, Oracle, and UKG

U.S. Payroll: ADP, Oracle, and UKG

Mark Smith, partner of Software Research at ISG, reflected on the evolving role of payroll, stating, “The future of payroll is not merely about processing payments. It’s about developing an agile, compliant, and employee-focused function that contributes to the organization’s long-term success.”

The comprehensive ISG Payroll Management Buyers Guides result from over a year of market and product research. This research is independent and not influenced by any software providers, aimed solely at assisting enterprises in optimizing their software investments.

For further details on the ISG Payroll Management Buyers Guides and to access summaries of each report, interested parties can visit their website. Complete reports, including provider rankings and detailed findings, are obtainable by reaching out to ISG Software Research.

About ISG Software Research

ISG Software Research, formerly Ventana Research, is recognized for its in-depth market research in the business and IT software sector. It shares insights regularly with its community and offers consulting, advisory, research, and education services aimed at enterprises and software providers. Their offerings assist businesses in evaluating software options through tailored assessment services.

About ISG

ISG (Information Services Group) III is a leading technology research and advisory firm, trusted by over 900 clients, including over 75 of the world’s top 100 companies. Founded in 2006 and headquartered in Stamford, Conn., ISG focuses on helping organizations achieve efficiency and growth through digital transformation services, among others. More information can be found at www.isg-one.com.

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Press Contacts:



Will Thoretz, ISG

+1 203 517 3119

will.thoretz@isg-one.com



Julianna Sheridan, Matter Communications for ISG

+1 978 518 4520

isg@matternow.com