Here’s how HR leaders can turn compliance into a growth driver with the help of AI to unlock efficiency, reduce friction, and deliver strategic impact.

Today’s HR leaders are facing more pressure than ever, with distributed teams, increasingly complex regulations, and rapid technology advancements. It’s no longer enough to keep operations running; HR leaders are expected to deliver quantifiable value and help shape the organisation’s strategy.

The challenge? Growing complexity and constant change. When these two collide, they create friction that leaves employees and leaders stuck wading through duplicated work, complicated processes, tools that underdeliver, and confusing change. A recent study conducted by Dayforce found that 92% of employees in Australia and New Zealand (ANZ) experience at least one form of friction at work, with ineffective communication, overly complicated processes, lack of resources, and resistance to change cited as top sources of friction, negatively impacting their productivity, agility, and morale.

Workplace friction doesn’t just slow things down; it also threatens compliance, increases risk, and limits HR’s ability to deliver strategic impact. But with the right approach, HR leaders can overcome friction and turn compliance into a powerful tool for growth – with the help of AI.

Why compliance is not just a tick-box

For many organisations, compliance can be treated as an afterthought – something necessary but doesn’t add much to strategy. But today’s workforce compliance complexities are not going away, and this reactive approach can cause delays and introduce more change than needed.

Not all companies are good with change. Dayforce research shows that friction around change is common – only 40% of respondents in ANZ say that they are good at rolling out processes and initiatives. When compliance efforts are bolted on after the fact, companies can be exposed to risk, potential penalties, and reputational damage.

The opportunity lies in embedding compliance from the start, transforming it from a tick-box exercise to a means of achieving broader business outcomes. It's more than just complying with laws and regulations but adopting a holistic view of managing compliance across your people, processes, and technology, to help your organisation move quickly without sacrificing accountability.

Using AI as an enabler

Artificial intelligence is all the buzz right now, and it has incredible potential to simplify work and help HR teams focus on strategic priorities. Many companies are excited to implement AI due to its potential, but even modern technology that’s meant to help can cause friction in organisations when adopted without governance and thoughtfulness. Our findings on technology friction show that 66% of employees in ANZ say that the new technologies their organisation adopts often decrease efficiency rather than improve it – and that’s the opposite of what AI is supposed to deliver.

HR must act as stewards of thoughtful adoption of emerging technology, helping ensure that tools such as AI are used responsibly and ethically, especially when it concerns workforce data. With clear guardrails in place, AI can help automate repetitive tasks, monitor compliance in real-time, and surface workforce trends that support better decisions.

Overcoming friction with technology

Compliance gaps and AI risks often stem from one core issue: too much technology. Often, organisations build their tech stack piece by piece as the business grew and based on the needs at the time, while others inherit systems through mergers and acquisitions. Rather than replacing these systems, they are often piled up, making work much harder – as confirmed by 69% of respondents in Australia. But more than the added work, disconnected systems mean data is less visible and even inaccessible, which makes compliance harder to manage, even with AI.

Adopting a single HR solution powered by responsible AI to replace a complicated workforce tech stack is not only possible but also beneficial. With a single source of truth together with AI-driven insights, organisations can reduce complexity and improve visibility, enabling them to make smarter, faster decisions, strengthen compliance, and deliver a better employee experience.

From reactive to strategic

When compliance and AI are integrated from the start, HR can overcome workplace friction and shift from a reactive problem-solver to a proactive growth partner. The payoff is clear: less risk, greater agility, and more time for HR to do the work that they are meant to do.

Ready to lead the transformation?

Join Dayforce at the HR Innovation & Tech Fest at the following sessions:

• Customer Fireside chat with ForeHealth | Workforce Without Borders: Driving efficiency in a national healthcare network – 22 September, 12:25 p.m.
• Breakfast Session | From Risk to Results: A strategic approach to AI and compliance in HR – 23 September, 8:00 a.m.