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Digitide + Alldigi: AI-Powered Payroll Automation Improves First-Time-Right Accuracy from 80% to 95%

Overview: Alldigi Tech, a leading payroll services provider receives payroll inputs from hundreds of client organizations — spreadsheets and emails in every client’s own format. Digitide implemented PRISM, an AI-powered platform that automates the ingestion, understanding, validation, and consolidation of payroll inputs end-to-end.
Objective: To replace manual, spreadsheet-driven payroll input processing with an AI platform that reads any client format, validates every record against the payroll system, and delivers audit-ready payroll data.

Business Challenges

Some of the key challenges faced by the client:
Unstructured Inputs: Every client sends payroll data in different Excel and email formats
Manual Re-keying:  Teams re-entered thousands of rows into the payroll system every cycle
Payroll Risk:  One wrong bank account or salary figure directly impacts an employee’s pay
Tight Deadlines: Monthly payroll cut-offs left little time for validation and fixes
PII Exposure:  PAN, Aadhaar, and bank details demanded strict protection around AI
Limited Traceability:  No line of sight from a client’s input file to the payroll outcome

The Solution

Digitide built PRISM, a multi-tenant AI platform that ingests payroll inputs from email, SFTP and API and processes them through a GenAI model handling classification, extraction, AI mapping of each client’s arbitrary headers, normalization, and validation against the payroll system-of-record. Per-client templates and rules handle master, bank, salary and CTC, attendance/LOP and resignation changes, with future-dated changes held for the correct pay period. Employee PII is masked in PRISM’s own service layer before every prompt, with per-client isolation and field-level encryption. Validated records flow to the payroll engine with push management, while dashboards, plain-language error reporting and one-click reprocessing give full visibility and control.

TAGS:

  • Claude Code
  • Claude Opus
  • Claude Sonnet
Digitide’s COE team has been instrumental in accelerating our delivery timelines through their agile execution, technical expertise, and collaborative mindset. Their structured approach to architecture, deployment, and infrastructure planning, coupled with their responsiveness and knowledge-driven support, has significantly contributed to the success of our initiatives. – Prakash R, AVP, Alldigi Tech

Value Delivered

PRISM transformed payroll input operations from manual consolidation to intelligent automation, lifting first-time-right data accuracy from ~80% to 95%. Inputs are processed the same day they arrive, every record is validated before it can affect pay, and standardized error reporting (78 plain-language codes) lets clients fix issues at the source. With AI mapping absorbing new clients and formats without development effort, the platform scales across hundreds of client entities with complete audit traceability.

65%

reduction in manual payroll-input effort through AI-driven extraction, mapping, and validation

95%

first-time-right data accuracy - up from ~80% before automation

35K+

records in a single batch; hundreds of client entities, each on its own isolated database.

Business Benefits

Faster Payroll Cycles

Higher Payroll Accuracy

Stronger Data Privacy

Complete Audit Traceability

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