CXOToday has engaged in an exclusive interview with Srinivas Konidena, Vice President, APAC Product Development
- How does ADP utilize generative AI to enhance its human capital management services?
ADP uses generative AI (GenAI) to improve its payroll and human capital management (HCM) services by making processes more user-friendly, efficient, and responsive. Under the umbrella of ADP Assist, our solutions deliver insights into the flow of work, connecting the “so what” to “now what”. They also provide process automation through Natural Language Interfaces (e.g., Chat, search) to streamline workflows and increase productivity.
ADP’s AI capability stands out due to our extensive data resources. With over 1.1 million clients across 140 countries and 41 million wage earners globally, ADP owns the industry’s largest and most comprehensive HCM dataset. The AI analyses this data to propose enhancements or identify irregularities in areas such as payroll, employee performance, and workforce management. GenAI presents these data-driven insights in a more accessible and actionable format, empowering HR teams to make informed decisions while reducing the risk of errors.
Meanwhile, we also focus on maintaining transparency and ethics in our use of GenAI. Our AI models are designed to assist human decision-making while being subject to rigorous oversight, ensuring compliance with privacy, security, and intellectual property standards. This combination of automation and human supervision allows ADP to offer innovative HCM tools that are both efficient and aligned with ethical AI practices.
- What measures does ADP take to ensure the security of client data while using AI technologies?
With the rapid rise of AI, especially in HR and payroll systems, ADP is committed to ensuring that its technologies are not only innovative but also ethical and transparent. It is a key differentiator for ADP as it helps maintain clients’ trust in ADP’s products and services.
ADP has adopted extensive principles and processes to govern its use of AI, machine learning and other new technologies. We ensure data security through dedicated ADP instances of large language models and minimal use of personal data. Ongoing human oversight helps establish data security and validity and ensures bias protections remain in place and are effective.
ADP has also been instrumental in setting industry best practices for AI in the HCM sector. An interdisciplinary governance model and the AI & Data Ethics Council, formed in 2019, are central to ADP’s approach, underscoring its commitment to ethical AI deployment.
By adhering to its AI Ethics Principles, ADP ensures transparency, mitigates bias, and fosters inclusivity in AI development. The company’s involvement in co-developing the Future of Privacy Forum’s Best Practices for AI in the Workplace and implementing the National Institute for Standards and Technology’s AI Risk Management Framework further demonstrates its dedication to responsible AI use. ADP strives to address ethical, security, and compliance requirements through these measures, benefiting clients worldwide.
- How does ADP’s attrition prediction model work and what additional functionalities does it offer?
ADP’s attrition prediction model forecasts potential employee turnover based on industry trends and company-specific factors.
Apart from predicting attrition, the model also supports talent management by suggesting potential replacement candidates and the expected salary range, helping organisations effectively plan their recruitment. This comprehensive approach enables businesses to anticipate attrition, proactively address staffing needs, and manage compensation strategies efficiently and seamlessly.
- What is ADP’s current approach to developing or using AI models, and why?
ADP has been working with AI and machine learning in our products for many years, leveraging the power of our unparalleled HCM dataset to help businesses succeed. We understand the great potential that new technologies like generative AI can provide as we design and develop innovative solutions that address the critical needs of our clients and associates. As part of our broader generative AI strategy, we have the infrastructure to incorporate these innovations in the right way for the right reasons and scale them across our business. We are continuing to integrate these technologies into our operations and solutions.
As the power of AI grows, we’re remaining laser-focused on the human experience, providing smart, easy and human technology to help our clients achieve their goals confidently. We also understand our great responsibility to approach these innovations in an ethical, secure and compliant way for our business and the clients we serve worldwide. We have brought together interdisciplinary teams across our organisation to establish a governance model to approach this new technology ethically, securely and compliantly that benefits our clients.
- In what ways is ADP experimenting with AI to improve payroll systems and tax processes in India?
By tapping into our extensive knowledge and comprehensive data collected from our global and Indian operations, we can provide our clients’ employees with the best tax-saving model recommendations based on their income profiles and the practices of others with similar incomes. Additionally, through AI-powered optical character recognition and machine learning, we can identify and prevent the submission of incorrect documents or values by employees when they provide proof. Our AI technology also enables clients to spot any abnormalities in inputs and final outcomes based on patterns and organisational policies.
- How does ADP’s AI-driven approach to HCM differ in focus compared to other business?
At ADP, we innovate with purpose. We are constantly in touch with our clients and innovating to meet their evolving needs.
With 75 years of history servicing more than 1.1 million clients spanning over 140 countries, data is the key differentiator as we have the industry’s largest and deepest HCM dataset. This extensive and unique dataset is at the core of all ADP products and solutions, which is also used to train ADP’s AI to anticipate what users want and need.
Integrity is a core value that we place at the foundation of how we design and develop our solutions and services. We’ve adopted a rigorous set of principles and processes to govern the use of newer technologies, including operational monitoring of recommendations made by AI/ML technologies. We continuously work to safeguard our trusted dataset by building rigorous standards to deliver unbiased, independent, and objective insight into the workforce.
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