Workday wants a slice of customers' labour budget that its AI agents could replace
Article excerpt
saas CEO eyes usage-based billing as automation pushes HR software vendor beyond traditional IT spending Workday wants customers to fund its AI agents from staffing and outsourcing budgets, not just IT spending, as it opens more HR and finance functions to automation. Speaking to investors at its annual conference in Las Vegas, the SaaS slinger said AI productivity gains could allow it to grow with fewer new hires. Customers could face a different cost calculation, however. Workday expects agent charges to grow with usage rather than simply the number of employees licensed to use its software. Chief AI Officer Joel Hellermark told financial analysts that automating work such as HR tasks could expand Workday's market "beyond the software budgets into the labor and services spend," where "customers are spending tens of millions of dollars on outsourcing." Hellermark claimed self-service AI agents had increased resolution rates for common tasks by 25 percent. "We're only getting started there," Hellermark said, arguing that Workday could significantly reduce customers' outsourcing spending. Aneel Bhusri, Workday co-founder and CEO, said using AI internally was helping the company grow without a corresponding increase in headcount. "We're looking at the products across all of our software providers [to show] how we can use AI to drive margin," he said. "It may not be in terms of...
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This week, Workday announced broader "headless" access to its HR and finance systems, allowing AI agents to read data and perform tasks without users navigating its application interface.
