Artificial intelligence (AI) should be seen as a tool for enhancement, not replacement, says the Chartered Institute of Payroll Professionals (CIPP).
As the industry enters a new era of technological transformation, research by the CIPP shows 34% of payroll workers worry about the impact AI will have on their roles. The main ‘AI anxiety’ surrounds technology stealing payroll jobs. Speaking on the CIPP’s ‘Behind the Button’ podcast, Steve Elcock, Director of Product AI at Zellis – the UK and Ireland’s leading provider of AI-enabled HR, pay, workforce management (WFM), and benefits solutions – highlights a clear message for the payroll industry: “AI won’t take your job, but someone who’s using it might.”
With payroll requiring absolute accuracy, AI presents significant opportunities to improve efficiency by automating repetitive processes while enabling pay professionals to focus on higher-value, strategic activities.
AI is already demonstrating practical value within payroll environments, including:
- Payslip explanation tools that provide employees with clear, narrative insight into pay changes
- Document parsing and automation, including processing P45s and payroll documentation
- Anomaly detection, identifying unusual pay patterns or data inconsistencies before pay cut-off
- Predictive analytics, using payroll data to identify trends and forecast workforce changes
- Risk detection, including identifying indicators of modern slavery or data irregularities
Steve Elcock, Director of Product AI at Zellis, said: “Payroll is one of the richest sources of organisational data. Used responsibly, AI can help transform that data into meaningful insight.
“AI should enhance, not replace, the human expertise at the heart of payroll. AI systems must operate with human oversight, strong governance frameworks, clear audit trails and data protection compliance.”
Steve Elcock adds: “ AI cannot replicate higher-order human capabilities such as empathy, trust, professional judgement and relationship building. These are all essential in a profession that deals with something as emotive as pay.”
The CIPP is encouraging pay professionals to upskill – not out of fear, but out of opportunity.
Jason Davenport, CEO of the CIPP said: “AI isn’t just about ‘knowing more’, it’s about ‘asking better questions.’ Pay professionals who understand their processes deeply will be best placed to leverage AI tools responsibly and strategically.
“As spreadsheets elevated accountants rather than replaced them, AI has the potential to elevate payroll – freeing practitioners from repetitive, manual checking and enabling them to focus on strategic insight, compliance leadership and employee experience.”
AI is not a distant concept. It is already embedded in HR and payroll platforms and will increasingly shape the future of work. Zellis carried out a report earlier this year in collaboration with Microsoft which revealed 64% of public sector HR professionals are already using AI in their processes.
The CIPP remains committed to supporting members through technological change, promoting responsible AI adoption, providing education and guidance and ensuring payroll remains a trusted, chartered profession.
Jason added: “Pay professionals should not ask whether AI will change the profession – it already is. The real question is how the profession will harness it.”
ABOUT THE CIPP
The Chartered Institute of Payroll Professionals (CIPP) is the Chartered Institute for payroll, pensions and reward professionals in the UK. With more than 9,500 individuals benefitting from the CIPP’s membership benefits and CIPP-approved qualifications and training, the Institute is dedicated to raising the profile of payroll in businesses across the UK.
The education portfolio, developed, delivered, assessed, and awarded by IPP Education (a wholly owned subsidiary of the CIPP), has been developed based on business and individual needs, to ensure they are providing the most relevant training in the market.
Their Policy and Research team represent CIPP members at government consultation forums, ensuring members are up to date and have a voice; and the Consult service offers compliance health checks in payroll processes and procedures, to ensure businesses are complying with legislation to avoid large penalties.
In 2024 the CIPP was ranked in the ‘top 50 best West Midlands Companies to Work’ and achieved ninth place in the ‘Not-For-Profit Body’s Best Organisations to Work For’ by UK Best Companies. It also achieved silver in the ‘Best Magazine Launch or Re-Launch’ category at the Association Excellence Awards 2024, for their membership magazine, ‘Professional in Payroll, Pensions and Reward’.
ABOUT Zellis
Zellis helps organisations unlock better outcomes by creating exceptional experiences for their people. UK and Ireland’s leading provider of HR, talent, workforce management (WFM), pay and benefits solutions, we put employees at the heart of every solution. Our tools give teams the insights, flexibility, and support they need to perform at their best. By removing barriers and embracing innovation, we empower organisations to reimagine what’s possible. Together, we Unlimit What’s Next for both people and performance.
In 2025 we brought together the very best of Zellis, elementsuite, and Hastee into a seamless experience, providing a single, coherent system for the modern workplace. Together, we deliver an adaptable, best-in-class, end-to-end solution that helps customers achieve smarter, faster, and more confident HR, WFM, and Pay outcomes. At Zellis we understand the urgency and scale of modern workforce needs, and we support the full employee lifecycle.
Our solutions help pay 1 in 6 of Ireland and the UK’s working population. Zellis was named Payroll Software Supplier of the Year at the Global Payroll Awards 2024 and 2025. Our HR and Pay solution has been recognised as Payroll Software of the Year (CIPP 2020, 2021, 2024) and has won the Payroll & HR Software Product Award (The Rewards 2019, 2021, 2023, 2024).
