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Dayforce boosts HR & payroll efficiency with Microsoft AI agents

Mon, 13th Oct 2025

Dayforce has announced an expanded collaboration with Microsoft to integrate Dayforce AI Agents into everyday business workflows across human resources, payroll, and operations.

Dayforce describes its platform as a unified application built entirely on Microsoft technologies, including Microsoft Azure, Microsoft Power BI, Microsoft Entra ID, Microsoft Teams, and .NET. This architecture is intended to enable organisations to achieve greater interoperability between systems, deliver faster product enhancements, and increase the return on their investments in Microsoft products.

Many organisations are currently tasked with driving greater efficiency and delivering improved employee experiences while maintaining trust in the use of AI at work. Dayforce notes that HR, payroll, and other business software often exist in silos, resulting in fragmented workflows and manual processes for employees and managers.

Integration with Copilot Studio

The integration will use Microsoft Copilot Studio, bringing custom and personalised AI agents directly into the Dayforce platform. This approach is aimed at uniting HR, payroll, and IT processes in a single, cohesive experience. The new AI agents will have secure access to a range of workforce data, such as employee details and payroll insights, within users' familiar working environments.

"By harnessing the full power of the Microsoft technology stack, Dayforce is redefining how organisations unlock value from their technology investments - freeing employees to focus on the work they're truly meant to do," said Joe Korngiebel, Chief Strategy, Product, and Technology Officer at Dayforce. "Together with Microsoft, we're delivering a smarter, more seamless experience that improves the daily flow of work, empowers leaders to automate with confidence, and connects people and data in ways that drive meaningful impact."

According to Dayforce, the platform allows organisations to fully extend and customise workflows using AI agents. These agents can be built and deployed through Dayforce APIs and Microsoft Copilot Studio to help streamline processes, simplify decision-making, and increase productivity.

The integration also supports secure interoperability. Organisations can connect with third-party applications and adopt the Model Context Protocol (MCP), ensuring smooth data exchange and workflow automation across their business applications. Cross-domain workflows can be unified, enabling, for example, IT managers to develop agents that answer policy questions or present workforce and payroll insights directly within Microsoft tools.

Microsoft perspective

"Our strengthened collaboration with Dayforce combines the global scale, security, and performance of Microsoft Azure with Dayforce's AI-powered innovation to solve workforce challenges in new ways. We're enabling mission-critical workloads while accelerating innovation - helping organisations move faster, empower employees, and thrive in a new era of work," said Mark Russinovich, CTO, Deputy CISO, and Technical Fellow of Microsoft Azure. "Together with Dayforce, we're delivering trusted AI solutions on a secure, scalable cloud foundation that drive real outcomes for organisations and the people who make them run."

Within the new integration, AI agents can be created for a range of tasks such as streamlining repetitive HR and payroll activities or providing decision support to managers. By designing these solutions on a single platform, Dayforce aims to reduce the need for multiple add-on modules and integrations, potentially simplifying deployment and maintenance for its customers.

Dayforce states that the platform is intended for organisations seeking to, in their words, 'maximise the value out of their technology investments' by offering capabilities to extend, secure, and unify operational workflows. The aim is to simplify how employees interact with HR and payroll systems, while also empowering leaders to automate business processes confidently.

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