An AI agent is software that can monitor information, analyze what it finds and take action toward a defined outcome. Unlike a chatbot or conversational interface that only answers questions or a tool that speeds up one step, an agent can support more of the work from start to finish. Some AI agents use technologies such as large language models and machine learning to understand information, identify patterns and determine the next appropriate step.
In payroll, agents may operate with different levels of independence. A semi-autonomous agent might review a payroll run, identify potential issues and prepare an action for a person to approve, while autonomous AI agents may complete routine tasks within the permissions and limits set by the organization. In either case, clear guardrails matter. The level of human review should reflect the sensitivity of the task, with stronger oversight for actions that could affect employee pay.