India leads AI forward payroll market innovation globally: Report

India is emerging as one of the most AI forward markets in payroll transformation, with 35 per cent of businesses identifying artificial intelligence adoption as the primary enabler of HR and payroll innovation, a report said on Tuesday.

The number of businesses in India that identified AI as the driver in payroll innovation over the next two to three years was the highest across the Asia Pacific region, the report from ADP India said.

Meanwhile, 68 per cent of organisations reported integrating AI to streamline workflows and reduce reliance on manual processes.

The report, however, noted that only 12 per cent of Indian organisations have payroll functions fully equipped for future demands, highlighting a readiness gap that must be closed to sustain growth and resilience.

"India’s workforce is entering a decisive phase of transformation as organisations adapt to diverse geographies, generations and employment models," the report said.