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Today companies that leverage and integrate emerging technologies into day-to-day operations gain significant advantages. For over a decade, technological advancements have increasingly impacted global business operations, allowing companies to increase productivity while freeing up resources for more strategic objectives. 

Emerging technologies such as artificial intelligence help companies streamline operations and improve other HR practices, such as hiring, onboarding, administering global payroll, and more. Ultimately, companies can leverage AI tools to develop a successful and efficient strategic growth perspective when scaling operations. 

These technologies have been used across various industries and are used by companies to seamlessly hire employees. This is also where an Employer of Record helps, as EORs enable companies to compliantly hire global employees and perform various HR tasks including payroll, tax remittance, and benefits administration. This allows companies to quickly hire new employees and gain faster entry to new markets, without incurring the legal and financial risks associated with setting up an entity in a foreign country. 

This article will provide you with an overview of artificial intelligence technology and discuss how AI systems enhance efficiency, ensure compliance, and balance legal risks for EORs. 

Artificial Intelligence

Artificial intelligence, or AI for short, is a technology that simulates human intelligence processes, such as solving problems or making decisions through software-coded algorithms. This also makes it possible for machines to learn from past experiences, adjust to inputs, and discover meaning.

The field of AI originated in the 1950s, but innovative advancements over the years have made artificial intelligence significantly more prominent in the current technological landscape. For example, AI technology is used in everyday tools such as digital assistants, GPS systems, consumer apps, and more. 

In general, artificial intelligence systems prioritize cognitive abilities including:


AI systems acquire or analyze data and process information to generate accurate insights. This allows the system to determine how to accomplish a specific task. Advancements have also made it possible for technology to learn from and adapt to new sets of information in moments. 


After the system learns from the information, it can determine the most efficient algorithm to achieve a task. By analyzing large sets of information, the system makes informed decisions and takes actions that have the highest chance of reaching the desired outcome, providing a valid reason for AI behaviors.


Artificial intelligence systems are programmed to respond or react to external sensory input. Advancements have allowed these systems to recognize speech and utilize multimodal processing to analyze information from images, text, and more. 

How Does Artificial Intelligence Work?

Artificial intelligence relies on different computer systems to quickly and accurately process data. In most cases, an AI system analyzes information, identifies any correlations or patterns within the dataset, and uses this information to make future predictions or develop an efficient strategy to accomplish a goal or prompt. 

Certain algorithms make this possible, and understanding some aspects of AI systems can help you implement these emerging technologies and improve your organization’s efficiency

Machine Learning

Machine learning is a subset of artificial intelligence that enables AI systems to learn new information by itself. This allows machines to build predictions around data. Different learning algorithms, such as neural networks and deep learning processing, also allow these systems to self-improve accuracy and efficiency over time. 

Natural Language Processing 

Natural language processing algorithms are another essential component of modern artificial intelligence technology. These innovations enable AI systems to combine computational linguistics with additional machine learning systems, which allows technology to recognize, understand, interpret, and generate human language. 

With NLP, technology can:

  • Translate text
  • Respond to comments
  • Summarize or analyze large volumes of text
  • Generate text or other digital information

AI Across Various Industries

Artificial intelligence technology has undergone significant advancements, with several industries implementing cutting-edge technology to increase productivity. 

Leveraging AI technology benefits businesses, regardless of the industry or company size. In fact, roughly 56% of businesses are utilizing artificial intelligence to improve or perfect business operations. 

Artificial technology is used to streamline practices and provide accurate insights, and these systems impact industries ranging from manufacturing to finance to human resource management. 

Automate Tasks

One of the most significant ways artificial intelligence helps companies achieve long-term success is through automating basic tasks. This allows companies to save resources, human labor, and time, allowing employees to focus on achieving more complicated or creative aspects of the organization’s goals. 

For example, these systems sift through datasets much faster than human workers without sacrificing accuracy. Other examples, such as an AI solution that simplifies global payroll, will automate other time-consuming tasks while completing all processes effectively. 

Improved Decision Making

Because AI systems process large quantities of data and quickly identify patterns, companies can leverage this technology to improve the decision-making process for core operations. Companies that implement AI systems gain data-driven insights in real time, allowing leaders to make more informed business decisions and develop more effective long-term projections or forecasts. A Gartner survey suggests that companies leveraging AI reduce errors in the decision-making process by roughly 37%

For example, leaders can gain valuable knowledge about the employer's social costs, including public or private insurance requirements and payroll taxes to optimize spending. Additionally, using AI technology mitigates risk for companies while scaling operations by flagging areas of weakness or practices that can be improved. 

Employer of Record Services

An Employer of Record (EOR) acts as the legal employer of each new hire on behalf of a client company. This enables companies to legally engage and onboard top talent from the global market without registering a legal entity.

Your Employer of Record will handle administrative and HR-related tasks, including managing employment contracts, paying international employees, filing and reporting taxes, administering benefits, and processing visas or other work permits - all while ensuring compliance with region-specific labor and accounting laws. 

Partnering with an EOR is a good idea for growing businesses that want to quickly expand operations without increasing overhead and labor costs. 

How Has AI Impacted EOR Platforms?

Like many industries, companies in the EOR space such as Borderless AI, have implemented some form of artificial intelligence to handle essential tasks. Leveraging an AI-powered EOR helps companies build a global team while mitigating the risks of entering new markets. 

In addition to AI’s most notable impacts on business operations, this emerging technology has also profoundly impacted EORs. 

AI technology is disrupting the EOR space by enhancing data analytics for workforce management, simplifying global payroll processing, and delivering personalized employee experiences. 

Improved Organizational Efficiency

Increased organizational efficiency for the EOR, client company, and employee is a significant impact AI has on the global Employer of Record space. Using AI, technology HR managers can breathe a sigh of relief that monotonous tasks such as data entry and the creation of job descriptions are handled. Unlike people, AI doesn’t get tired and can remain productive around the clock. 

Navigate the Global HR Market

Companies that leverage AI technology can predict trends or gain key insights into the workforce, allowing companies to strategically plan for the future and implement more effective risk management strategies. 

AI-powered global payroll technology will also accurately calculate an employee's gross salary and tax requirements, withhold any regional social security contributions, and efficiently pay employees in their local currency, which can be a lengthy and complicated process. 

AI technology even improves efficiency for the client. Implementing AI-driven technology such as chatbots helps answer questions within seconds, significantly improving the customer experience while decreasing labor costs. 

Guaranteed Compliance with Local Employment Legislation

Companies must follow all local labor laws and regulations to mitigate financial and legal risks. Scaling companies are in luck because one of the most notable services global EOR platforms offer is guaranteed compliance at all stages of the global employment process. Failure to follow employment regulations will result in noncompliance penalties, including steep fines, back pay for wages or benefits, sanctions against continuing with business operations, severe reputational damage, and legal troubles. 

Artificial intelligence technology supports an EOR’s compliance efforts in several ways. An AI-powered EOR utilizes emerging technology to explore employment requirements and continuously monitors changing regulations, providing a streamlined method to stay current with ever-changing employment legislation.

Machine learning algorithms can analyze a company’s current compliance practices and identify vulnerabilities to optimize operations while streamlining tasks, such as keeping records. 

Balanced Legal Risks

In addition to providing compliance assistance, companies that leverage AI to analyze documents will identify potential legal risks when drafting contracts and avoid unexpected setbacks. 

This helps companies efficiently identify non-compliant practices, such as misclassifying employees as independent contractors, and draft legally valid employment contracts that include all necessary terms and clauses.

Using artificial intelligence to analyze trends and patterns within the company yields more effective risk predictions and management strategies, which drastically reduces a company’s liability. AI algorithms also streamline research into related cases or queries and will provide accurate or relevant insights into legal issues, allowing EORs to navigate complicated legal issues more effectively. 

Artificial intelligence reduces a company’s legal risks in other ways. For example, an employer of record can leverage AI technology to improve cybersecurity practices, further mitigating a client’s legal risks by preventing data breaches. 

Data security is becoming an increasingly significant legal consideration for companies, with regulations such as the European Union’s General Data Protection Regulation, Brazil’s General Data Protection Law, and the Consumer Privacy Protection Act regulating how data is used, kept, and stored. 

Other Significant Impacts of AI on the EOR Space

While increased efficiency, streamlined compliance, and improved legal risk management are among the most significant impacts of AI on EOR platforms, there are others to consider. 

Comprehensive Support for a Global Workforce

For example, companies can utilize AI algorithms and other technologies to improve hiring practices. An EOR can leverage artificial intelligence to navigate any potential language or cultural barriers more effectively by limiting issues with communication. 

Considering the impact of this technology on global EORs and staying current with global employment trends enables companies to remain competitive. Some major trends include prioritizing the company’s culture to retain existing talent, digitalizing the hiring process with applicant tracking systems, and offering more flexible work arrangements. 

Borderless AI - Rethink Global HR: Accurate. Compliant. AI-Powered.

Borderless AI is an EOR platform that acts as the legal employer of each new hire, taking care of complicated administrative tasks such as payroll and taxes, while your company maintains control over day-to-day organizational processes and managing staff. Administrative tasks include but are not limited to:

  • Managing employment contracts
  • Maintaining compliance with local employment legislation
  • Accurately processing payroll for employees
  • Filing taxes
  • Providing compliant benefits packages

With Borderless AI, businesses can hire top international talent without establishing a local entity, alleviating the complexities and risks of hiring global employees. 

Alberni - Built for the future of global HR

Borderless AI redefines global HR with no upfront costs, unrivaled customer experience, and the first-ever AI agent for global employment. 

Our AI-powered agent, Alberni, can help you generate compliant employment agreements for new hires in over 170 countries, mitigate risks within new and existing contracts by reviewing important legal frameworks, and answer questions about global labor laws and compliance in seconds. Contact us today to see how our AI agent streamlines the hiring, onboarding, payroll, and administrative process associated with hiring top global talent. 


Borderless does not provide legal services or legal advice to customers, contractors, employees, partners, or the general public. We are not lawyers or paralegals. Please read our full disclaimer here.

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