PayrollOrg’s position paper on artificial intelligence (AI) addresses the many bills pending at the federal and state levels to control misuse of AI. While no bills have been directed at payroll operations, payroll is beginning to use AI for processing tasks. Payroll data can be used by employers and government entities to teach AI systems. Thus, legislation can impact payroll professionals’ work.
AI presents significant opportunities to improve payroll operations, strengthen data accuracy, streamline administrative processes, and help employers meet increasingly complex compliance obligations. At the same time, payroll involves highly sensitive personal and financial information, as well as legal requirements governing wages, tax withholding, benefits, and employment records. Policymakers should ensure that AI regulations account for these unique responsibilities.
PayrollOrg is encouraging policymakers to pursue a risk-based, technology-neutral approach that promotes responsible AI innovation while protecting workers and supporting employer compliance. Laws should provide clear, consistent standards; recognize the unique role of payroll; protect sensitive employee information; preserve meaningful human oversight; avoid unnecessary compliance burdens; and ultimately, AI regulation should protect workers without creating unnecessary barriers to innovation or making it more difficult for employers to meet their existing legal obligations.
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Alice P. Jacobsohn, Esq., is Director of Government Relations for PayrollOrg.
