Why AI Alone Can’t Solve Africa’s Payroll Complexities

With the current AI hype, it’s tempting to assume that technology can be a silver bullet for nearly every business challenge, payroll included.

But when it comes to Africa’s diverse and often fragmented payroll landscape, the reality is far more nuanced. AI is undoubtedly a powerful enabler, but it can’t fix foundational issues on its own. Even the most advanced AI falls short without:

1. Clean data
2. Localised expertise
3. A deep understanding of regional complexities

As global payroll expert Pete Tiliakos put it:

“At the core of every large language model in AI is data. And if your data is not in a good place, you’re not able to trust it… that AI is not going to be able to do what it needs to do.”

The data dilemma

AI thrives on clean, structured, and accessible data. Unfortunately, many organisations across Africa and globally are still operating with semi-manual processes, legacy systems, and scattered data sources.

A story from a recent talent tech event highlights this well. Pete Tiliakos shares that many executives have ambitions of using AI to revolutionise learning and development. But when asked about the core HR system the client’s organisation was using, it turned out to be an outdated, on-premises solution.

“How are you gonna really be able to hit a home run if you can’t get your feet set in the bat?”
Until the foundational systems are modernised and data becomes trustworthy; AI technology today remains more aspirational than operational.

Trust & human oversight

In payroll, accuracy isn’t just important: it’s everything. And trust plays a central role.

“Can I trust that this technology is doing what I would be doing if I was sitting there processing the payroll?” asks Pete Tiliakos.

This question encapsulates the core issue. Payroll isn’t just numbers, it’s people’s livelihoods. Mistakes can mean:

• Compliance failures
• Fines
• Missed or incorrect pay for employees, most importantly

That’s why AI can’t operate in isolation.

Human oversight, emotional intelligence, and domain expertise remain critical. Payroll professionals are evolving from processors into strategic advisors, using data to:

• Drive decisions
• Identify anomalies
• Offer valuable guidance

Africa’s payroll landscape: hyperlocal, highly complex

The African payroll environment is one of the most complex globally. With over 50 countries, each with:

• Unique tax codes
• Labour laws
• Currencies
• Geopolitical factors

It’s impossible to apply a “copy-paste” global payroll solution across the continent.

“Payroll is hyperlocal… but organisations want a global infrastructure and a global set of data.”  – Pete Tiliakos

Balancing global consistency with local compliance is a tightrope walk. Some companies are still fully paper-based, others are digitalising, and many exist in a hybrid state. A one-size-fits-all approach simply doesn’t work.

“There’s different levels of readiness. Some are semi-manual, some are fully digitalised, some are still very much on legacy and paper-based.”

Navigating these differences requires more than just tech, it demands human partnership and tailored advisory.

Managed services & modular flexibility

One of the most promising shifts in the industry is the move toward modular, managed services. Rather than trying to build a massive, one-size-fits-all system, companies are beginning to partner with local experts and providers who understand the intricacies of African payroll.

“I don’t have to go all in, buy it all, do everything at once. I can take it as and when my need arises.” Explains Pete Tiliakos.

This “land and expand” model allows businesses to retain control in areas where they are strong. Meanwhile they fill in the gaps with trusted partners who bring both technology and human intelligence to the table.

The role of strategic payroll consultants

As AI and automation take over repetitive, rule-based tasks, the role of payroll professionals is being redefined.

“I don’t believe that payroll consultants now see themselves as processors. They see themselves as strategic advisors.” Shares Pete Tiliakos.
With the right data and tools, consultants can detect anomalies, advise on compliance, model pay-on-demand options, and help clients adapt to shifting legislation – all of which are essential in Africa’s dynamic environment.

“We need to understand their current ecosystem… the geopolitical variances in those countries are quite scary… changes happen overnight.” Explains Kevina Takoordyal, Head of Operations at Africa HR Solutions.

Consultants must not only bring expertise, but also walk alongside clients, helping them build roadmaps toward compliance and automation at a pace that matches their readiness.

The real power lies in Human + Machine

AI is not necessarily a transformative power. Rather, it is an amplifier.

It takes what you already have and enhances it.

If the data is messy or incomplete, AI simply magnifies that problem. But when paired with human intelligence, strategic thinking, and local expertise, the possibilities have the potential of becoming truly transformative.

“Human intelligence paired with artificial intelligence is really gonna be the power.” Shares Pete Tiliakos.

The future of payroll in Africa cannot be built by AI alone. It will be shaped by people who understand the terrain, leverage the tech, and guide organisations with empathy and expertise.