Payroll, AI and the Human Touch

by Alex Daruty | Sep 23, 2025 | Events & Press

Where is AI technology heading for payroll, and where does the human touch fit in all this innovation?

This blog post captures the key takeaways and insights from our latest podcast episode, where we explored Payroll, AI and the Human Touch in Africa.

The guests are global payroll expert Pete Tiliakos, Kevina Takoordyal, and Alex Daruty, Head of Operations and Head of Commercial at Africa HR Solutions respectively.

We covered the following topics and more:

Long-term payroll strategy
Local compliance challenges
The evolving role of technology and human expertise in global expansion, especially across complex regions like Africa

Whether you're in HR, payroll, or business leadership, you'll find practical advice, strategic thinking, and expert perspectives to help you navigate growth in emerging markets.

Payroll, AI & The Human Touch

For a very long time, payroll has been starved of innovation, often feeling like brain surgery done with caveman tools, highlights Pete Tiliakos.

Much of the existing technology was outdated and built for process, not for the user. But now with new AI technology, there's a real convergence happening: an awakening to what payroll is and what it should have been all along.

With challenges such as:

Compliance pressures rising
Workforce dynamics shifting
Digital capabilities expanding

Organisations have the opportunity to do more with less and go further than before.

Technology is revealing the true value of payroll, especially through the immense impact it has on skilled payroll professionals who are, in many ways, business leaders. They manage one of the richest data sets in the organisation, which becomes incredibly powerful in a world moving towards data, automation, and AI.

As we shift focus to analysing anomalies and making data-driven decisions, payroll is emerging as a strategic function. It is no longer relegated to a mere legal responsibility. It can become a business asset. This is something that C-suite professionals are increasingly recognising.

But are businesses prepared to leverage this technology?

“Most companies probably aren’t ready for AI, and it all starts with the data.” Explains Pete Tiliakos.

At the core of every AI model, whether large or small, is data, and the AI simply can’t function as intended if that data isn’t:

Clean
Integrated
Trustworthy

A great example is that of a senior learning and development executive who shared big ambitions for AI. But when asked about their core HR system, it turned out they were still using an outdated, on-premises legacy platform.

Getting the fundamentals right

Without modern infrastructure and quality data, using AI tech in payroll is like trying to hit a home run without first getting your footing.

Before companies can take advantage of the more exciting aspects of AI, they need to get the fundamentals right:

Data integrity
System integration
Cloud readiness

The good news is that many organisations are now under pressure from leadership and boards to modernise, and that mandate is shifting from customer-facing areas into the back office: HR, IT, finance, and beyond.

What about the human touch?

In this world of data and automation, where does the human touch fit?

“The real power of AI emerges when it’s paired with human intelligence. It’s not about replacing people, but about freeing them from repetitive tasks so they can apply emotional intelligence and deep expertise to interpret insights and drive strategic value.” Explains Pete Tiliakos.

Kevina Takoordyal is of the same mind, sharing that while Africa HR Solutions automates as efficiently as possible, the human element remains essential, particularly when things go wrong.

“It’s all about finding the right balance between AI and a human-centric approach, especially given the cultural sensitivities involved... If someone hasn’t been paid and time is running out, they don’t want to deal with a chatbot; they want to speak to a real person who understands their situation. That’s why, when it comes to advising clients and resolving queries, I strongly believe it still needs to be handled by people. Empathy can't be automated. Each situation is unique, because we’re dealing with individuals, not just data points. So, while we absolutely leverage AI-enhanced techniques, we ensure the people element stays central to everything we do. It’s a beautiful blend, and we remain very intentional about keeping that human connection close to heart.”

What exact roles will payroll professionals play?

In payroll especially, experienced professionals can step into advisory roles, helping the business to:

Avoid compliance risks
Model future scenarios
Unlock the predictive power of data

The shift which focuses on amplifying human talent through technology, is exactly where the future should be heading, shares Pete Tiliakos.

Global v/s local realities

Africa presents huge opportunity, with a population of around 1.3 billion and roughly 60% under the age of 25, making it one of the most youthful and dynamic labour markets in the world.

There's rapid tech growth and a strong talent pipeline, but also significant complexity. Compliance can be challenging, processes are often outdated, and practices vary greatly across countries. Businesses can't apply a UK or US model and expect it to fit, because each market requires a tailored approach.

In some countries, filings still need to be done in person, with wet-ink signatures and physical stamps. This is where managed services become essential, offering local expertise and infrastructure to support these “last mile” requirements. Ultimately, while global payroll may be centralised, delivering it effectively demands a deeply local strategy.

Top 3 pieces of advice for businesses expanding to Africa by Pete Tiliakos

1. Start with a clear vision & long-term mindset

Before diving into operations, get crystal clear on your organisational vision. What are you trying to become, and what will it take to get there? Whether you're entering a single African country or planning broader expansion, your HR and payroll infrastructure must support that journey, not just where you are now, but where you want to be in 2, 5, or even 10 years.

Too many organisations solve for the present and end up outgrowing their systems.

Invest in scalable solutions and partners that align with your long-term roadmap.

2. Be honest about your capabilities

Understand your internal strengths and limitations.

Do you have the legal, cultural, and operational knowledge to navigate local complexities?

If not, and most don’t, it’s vital to seek proper guidance.

Local compliance requirements, labour laws, and workforce expectations can vary dramatically between countries. Without in-country expertise or local entities, the risk of missteps increases.

Real success starts with a frank self-assessment:

Where are you now
Where do you want to be
What’s missing?

3. Choose the right partners & build on a solid foundation

Successful expansion requires more than just ambition: it requires the right foundation and the right people supporting you.

Partner with providers who understand both your strategy and the local market context. The African market, like many emerging regions, offers huge potential but is inherently complex. This isn’t a space to go it alone. Look for partners who can grow with you, integrate easily into your existing structure, and bring the local knowledge you lack.

Managed services often play a key role here, acting as an extension of your team with the regional expertise needed for long-term success.

Lead the charge in Africa with Africa HR Solutions

Our teams are always anticipating changes and innovating to help you streamline your business and optimise your assets and efforts in Africa. ISO 27001 certified, Africa HR Solutions is the largest African EOR, with a reach of 46+ countries.

To find out how we can help you, get in touch with one of our consultants.