Human resources functions to evolve in 2026 with wider AI adoption

35% of Singapore companies plan to improve payroll transparency over the next two to three years.

Human resources functions in Singapore and globally are expected to undergo further change in 2026 as artificial intelligence adoption accelerates and workforce expectations continue to evolve, according to ADP.

In its report, ADP said organisations are rethinking HR capabilities, AI governance, skills design and payroll delivery in response to wider use of advanced technologies and more complex workforce needs.

The guide said AI is increasingly being applied to payroll and HR operations. Citing ADP’s Potential of Payroll 2025 report, the company said 51% of organisations in Singapore view AI as important for improving payroll productivity.

ADP said the use of agentic AI could support HR teams by automating parts of onboarding, streamlining validation work, generating real-time insights for managers, and reducing errors in data-intensive processes such as payroll.

ADP also highlighted the need for stronger AI governance and closer collaboration between HR and IT functions.

ADP said employers should ensure AI systems are built on secure, high-quality data and include human oversight at critical decision points.

The guide also pointed to skills mismatches in the labour market. ADP said only 23% of workers in Singapore feel they have the skills needed to progress in their careers.

It said employers are responding by mapping workforce capabilities, refining job design, and using technology to better align roles with organisational requirements.

Payroll transparency was cited as another emerging priority. According to ADP, 35% of Singapore companies plan to improve payroll transparency over the next two to three years, reflecting rising expectations from employees and regulators.

Finally, ADP flagged increasing compliance complexity as organisations manage more cross-border teams in Asia.

It said differences in laws governing payroll, data usage, working hours, and record-keeping are creating challenges for employers, and suggested developing core standards that safeguard workers’ rights whilst allowing for local regulatory differences.

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