As artificial intelligence adoption grows, many U.S. employees feel uneasy about AI handling payroll and paycheck tasks, according to PayrollOrg. A survey of over 25,000 Americans found 34% uncomfortable with AI calculating wages. Additionally, 45% oppose AI handling payroll inquiries instead of human staff.
“Payroll is more than a transaction; it reflects how much an organization values its workforce,” said Teresa Smith, director of human insights at UKG. She added that delays or errors can cause financial strain, making accuracy and speed strategic priorities. While AI reshapes business operations, trust in AI managing pay remains limited.
According to Resume.org, one in three companies expects AI to manage hiring by 2026. Currently, 57% of organizations already use AI in hiring, and 74% report better quality hires. However, over half worry that AI may screen out qualified candidates, introduce bias, or lack human oversight.
Among managers using AI, 94% employ it to make decisions about their teams, including promotions and layoffs, per Resume Builder. Yet, only 30% of leaders report receiving formal ethical training, despite 70% trusting AI’s fairness.
PayrollOrg recommends combining AI with human oversight to maintain employee trust. Clear communication and transparency are critical as organizations explore AI in payroll.
Smith concluded, “AI must be designed with people at the center. When applied correctly, it strengthens financial well-being, operational confidence, and organizational credibility.”
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News Source: Hrdive.com
