Why AI in payroll is useless if your data isn’t right
For decades, payroll has been the unsung hero of the business world, quietly taking on crucial tasks like ensuring employees are paid correctly and on time...all the while navigating complex, and ever-changing compliance environments.
But as technology evolves and artificial intelligence (AI) promises to change HR as we know it, there’s a growing truth beyond the awe for AI’s capacities: without good data, AI is useless.
AI & Payroll: New tools to jumpstart innovation
As global payroll expert Pete Tiliakos put it, “For a very long time, we’ve been starving for innovation and technology in payroll. We’ve been doing this sort of brain surgery job with caveman tools.” That’s changing fast. Organisations are now realising the strategic power of payroll data, not just to ensure compliance, but to:
- Unlock insights
- Forecast risks
- Make better business decisions.
Data as the foundation for efficient AI use
Yet as Pete Tiliakos points out, the real challenge isn’t the technology itself: it’s the foundation it relies on.
“At the core of every large language model in AI is going to be data.” He shares. “And if your data is not in a good place, you’re not able to trust it. You can’t flow it across your landscape. You’re not integrated with your key business systems. That AI is not going to be able to do what it needs to do.”
In other words, even the smartest algorithm is only as good as the data you feed it.
Pete Tiliakos shared an example of speaking to a senior executive excited about implementing AI-driven learning and development tools , only to discover their organisation was still running on an outdated, on-premises HR system. As he put it:
“How are you gonna really be able to hit a home run if you can’t get your feet set in the bat?”
This analogy sums up the state of readiness across many businesses. AI in payroll may sound like the next big thing, but if the fundamentals - clean, integrated, accurate data – aren’t there, the technology will struggle to deliver any meaningful value.
“AI is a bit of a flashy thing until you have the integrity of that data in order to be able to work with it,” Shared Pete Tiliakos. “There’s a lot of getting in shape that firms need to do.”
The Human-AI relationship
But getting in shape isn’t just about systems; it’s about people too.
Trust is at the core of the relationship between payroll professionals and technology. “Can I trust that this technology is doing what I would be doing if I was sitting there processing the payroll?” asked Pete Tiliakos. That trust comes from having reliable data and transparent processes, otherwise, automation simply amplifies existing errors.
Kevina Takoordyal, Head of Operations at Africa HR Solutions, echoed the same sentiment: “I wouldn’t say that we have missed the train when it comes to AI. I would say AI certainly is a strategic enabler for us.” Her team’s success, she explains, lies in “getting the right data from source” and building predictive models based on accurate, curated information.
“Data literacy is definitely 100% there,” she added. “Payroll consultants now see themselves as strategic advisors... we can pick up anomalies straight away.”
This shift from processor to advisor is key. When data is accurate and accessible, payroll teams can move beyond manual reconciliation and “compliance firefighting”. They can become proactive, using insights to predict and prevent problems before they occur. But Kevina Takoordyal cautions that not every organisation is at the same level of readiness:
“Some are semi-manual as we speak, some are fully digitalised, some are still very much on the legacy and paper base,” she said. “Our role is to advise them, but also to make sure there’s a timeline, a roadmap, and that we remain with the client to make them fully compliant.”
The future of AI in payroll
So where does this leave the future of AI in payroll? The potential is vast.
The possibilities are exciting:
- On-demand pay
- Continuous calculation
- Predictive analytics
- Financial wellbeing tools
But, as Pete Tiliakos emphasised, “You can imagine where this could go: a payroll experience that is fundamentally always on, always orbiting the employee.”
This vision, however, depends on something far more grounded: data integrity.
Without it, AI won’t just fail to deliver; it could actively create risk. “If the data’s bad, it’s not gonna matter,” said Tiliakos. “You’re going to get bad data out.”
The message is clear. Before chasing the next shiny piece of AI technology, businesses need to ask themselves one simple question: is our data right? Because in payroll, where precision, compliance and trust are everything, no amount of artificial intelligence can make up for a weak foundation.
Pete Tiliakos sums it up perfectly, the power of payroll in the digital era lies in “human intelligence paired with artificial intelligence”.
Work with a human-led, tech-forward partner in Africa
Africa HR Solutions embodies the idea of pairing up human intelligence with artificial intelligence. Our systems are modern and tech-forward, yet they retain the empathetic, personable touch that comes with having a team of professionals at your service.
To find out how we can best help you, send a message to one of our consultants.
