Dayforce boosts HR and payroll efficiency with Microsoft AI agents
Dayforce is expanding its collaboration with Microsoft by integrating Dayforce AI Agents directly into HR, payroll, and operations workflows. Built on Microsoft Azure, Power BI, Entra ID, Teams, and .NET, the platform aims to streamline work while improving interoperability and ROI on existing Microsoft investments.
Why this matters for HR
HR tech stacks often sit in silos, forcing employees and managers to jump between systems. Dayforce's approach brings tasks into one interface so staff can take action faster and with fewer manual steps.
How the integration works
The integration uses Microsoft Copilot Studio to bring custom, role-aware AI agents into Dayforce. These agents can securely reference workforce data-employee details, payroll insights-and operate inside tools people already use, including Microsoft Teams.
According to Dayforce, organizations can extend and customize workflows via Dayforce APIs and Copilot Studio. The stack supports secure interoperability with third-party applications and adoption of the Model Context Protocol (MCP) to enable smooth data exchange and automation across business apps.
What you can automate now
- Streamline repetitive HR and payroll actions (e.g., status changes, time requests, document delivery).
- Provide managers with decision support using current workforce and payroll data.
- Enable IT to build agents that answer policy questions or surface insights directly in Microsoft tools.
- Reduce reliance on multiple add-on modules by designing solutions on a single platform.
Leadership perspective
Joe Korngiebel, Chief Strategy, Product, and Technology Officer at Dayforce, said the company is using the full Microsoft stack to help organizations unlock more value, free employees to focus on meaningful work, and deliver a seamless experience that connects people and data.
"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 organizations move faster, empower employees, and thrive in a new era of work," said Mark Russinovich, CTO, Deputy CISO, and Technical Fellow of Microsoft Azure.
Security and trust
The integration runs on Azure's enterprise-grade infrastructure with identity managed through Microsoft Entra ID. Dayforce notes that AI agents are configured for secure access and can operate across domains while maintaining data controls.
How HR teams can get started
- Identify high-friction workflows in HR and payroll that generate tickets or manual handoffs.
- Prioritize one use case with clear KPIs (response time, error rates, cycle time).
- Work with IT to define data access, retention, and auditing policies for AI agents.
- Pilot in a single business unit, collect feedback, then scale to adjacent processes.
- Train managers and HRBPs to interpret AI-surfaced insights and confirm decisions.
The bottom line
Dayforce's integration with Microsoft brings AI agents into everyday HR and payroll work, consolidating actions, reducing manual effort, and giving leaders clearer signals to act on. For HR teams under pressure to improve employee experience and efficiency, this is a practical path to results without rebuilding the tech stack.
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