According to a survey by the Chartered Institute of Payroll Professionals (CIPP), the majority (82%) of payroll professionals say there are no mechanisms in place to ensure that AI advances in payroll are handled ethically and responsibly.
Samantha O’Sullivan, CIPP’s head of policy and advice, said: HOUR magazine that as more payroll professionals use AI, they need to be aware of data security risks.
She said: “We hear a lot more now about the ethical and responsible use of AIWhat organizations need to keep in mind when it comes to payroll data is that we are dealing with personal and identifiable information, and it is essential that it is protected.
“It is critical to ensure that this data is not provided to generative AI models, such as ChatGPT, Gemini, and CoPilot, as this data could then be used for further AI training and pose a security risk.”
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CIPP surveyed 400 payroll professionals on their approaches to the growing presence of AI in the sector. It found that 6% said they were using some form of AI within their organisation in relation to payroll processes. The majority (84%) were not, and 10% were unsure.
O’Sullivan added that AI could help ease the burden on payroll professionals. workloadespecially in data entry.
She said: “Many payroll software companies are exploring the roles of AI in payroll, as it offers a broad scope to assist with data entry and manual tasks. However, it is always best for payroll teams to assess where they can best implement AI in their own workflow, and do so responsibly within the systems they already have in place.”
Among those using AI, 3% said AI or automation had replaced pay roles within their organization. The vast majority (84%) said this was not the case, and 13% indicated that even if this was not the case, payroll professionals had taken on modified duties since taking office.
More than a third (35%) of respondents are concerned about the impact of AI on their role.
According to Sylvain Grande, Chief Product Officer at PayFit, a payroll software, developing AI skills within a payroll team is essential.
Talk to HOUR magazine, he said: “The human factor remains the most important, making sure you have trained staff who understand both AI and payroll systems at different levels.”
Payroll professionals Companies looking to implement AI responsibly should start by ensuring legal compliance and strengthening training, he added: “Before leveraging AI in payroll, organizations must clarify the use cases where AI is relevant and ensure robust data governance policies.”
“Organizations must also ensure compliance with local labor laws and data protection regulations (e.g. GDPR). The preparation of infrastructure is also crucial.
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One in ten (9%) organisations surveyed have experienced an attack that impacted payroll.
Grande said: “AI can both reduce and increase the risk of cyberattacks or data breaches, due to the large amount of sensitive information they handle, the impossibility of auditing it, and other factors.
“Organizations must implement robust cybersecurity measures, including multi-factor authentication, access controls, and regular security audits. AI systems must be designed with built-in security features that can detect and respond to unusual activity in real time.”
He stressed the importance of employee awareness of cybersecurity: “Training employees on cybersecurity Best practices are essential, as human errors often lead to violations.
“Organizations must also establish a comprehensive incident response plan to quickly mitigate any breach that occurs.”
The CIPP survey of 468 payroll professionals was conducted between May and June 10, 2024.
