Today's Edition
BATOOL GHAITH (ABU DHABI)
A payroll process that once took four working days can now be completed in less than an hour through the UAE Ministry of Finance's new AI-powered system. Tech experts say the move highlights a wider shift that will push the private sector to catch up.
The MoF recently introduced its AI Payroll initiative, a transformative step for the federal payroll system and a test case for how far AI can go in automating HR processes.
Experts said the initiative puts that expectation into practice - where AI will take over more routine functions as employees shift toward work that requires analysis, judgement, creativity and decision-making.
As government operations become increasingly AI-native, they say, businesses that interact with them will come under growing pressure to modernise their own.
Avinav Nigam, Founder and CEO of TERN Group, said the significance of the initiative goes beyond the time saved. "It tells us that the UAE has stopped asking whether AI belongs in government work, and started proving it.
"Four days to under an hour is not an upgrade - it is a complete rethink of how a government function operates," Nigam told Aletihad. Rather than simply digitising an existing process, he said the approach represents a more fundamental redesign of government work around AI.
The initiative comes as AI is increasingly integrated into government services and operations across the UAE. The Federal Authority for Government Human Resources (FAHR), for example, has deployed its own HR AI Agent, which offers more than a hundred services and automates most self-service transactions for employees.
The MoF has integrated generative AI within its call centre, while the Ministry of Human Resources and Emiratisation has used the technology to speed up transaction verification and labour-market services, among other processes.
Nigam, who helps build AI tools for UAE health systems, said the pace of implementation is becoming evident. "The initiative is exactly what you would expect from a government that has already committed to running 50% of its services on agentic AI within two years."
Wider Impact on the Private Sector
As government systems become increasingly AI-native, businesses interacting with them will face pressure to modernise their own operations, Nigam said.
"The opportunity for the broader UAE workforce is actually more significant," he said, pointing to private-sector growth. Companies connecting into government payroll and compliance infrastructure will increasingly need HR and finance operations that can operate alongside real-time digital systems.
"The public sector is setting the pace. The private sector's choice is not whether to follow but how quickly," he added.
Opportunity for HR Teams
For HR specialists, the larger opportunity lies in what employees can do with the time automation frees up.
K.K Thomas, GM and Group HR Head, said introducing AI into a critical function such as payroll signals that HR operations are becoming faster, more intelligent and more employee-focused.
"When payroll can be completed in under an hour instead of several days, it reduces administrative burden and gives HR teams more time to focus on strategic priorities such as talent development and workforce planning," Thomas told Aletihad.
He expects similar shifts across other HR functions as the technology matures, becoming more predictive, personalised and insight-driven.
Lule Bunjaku Karapinar, CEO for GCC Markets and Executive Education at LEORON Institute, cautioned that speed alone shouldn't be the measure of success. "In an area as sensitive as payroll, accuracy, data protection, accountability and the ability to manage exceptions remain essential," Karapinar told Aletihad.
Strong AI systems, she said, should free up human expertise to focus where judgement and intervention matter most, rather than remove human responsibility altogether.
Human Skills Become More Valuable
As routine administrative work becomes more automated, the skills valued in the workplace are also expected to shift, experts said.
"AI will not replace people, but it will change what makes people valuable at work," Thomas said. "The more routine tasks technology takes over, the more important human qualities like critical thinking, creativity, communication and sound judgment become."
Karapinar pointed to a similar set of capabilities, including data literacy, critical thinking, problem framing, digital confidence and the ability to evaluate AI-generated outputs.
"When organisations combine automation with structured upskilling, AI can expand human capability rather than simply reduce administrative workload," she said.
Karapinar agreed that removing repetitive work can help demonstrate that AI supports employees rather than simply cutting costs. But trust requires more than visible efficiency.
"Employees need to understand how the system works, what information it uses, how their data is protected, and who remains accountable when an error occurs," she said.
Leaders, she added, should involve employees throughout the transition, clearly communicate the purpose of new technology, and invest in the capabilities people need to use it confidently.
The success of the shift will also depend on whether employees trust the systems they're asked to work with, Nigam said.
When an employee sees payroll processed accurately and reliably in under an hour, AI stops being an abstract concept. "They stop thinking of AI as a concept and start experiencing it as something that works for them," he said.
