Automatic Data Processing (ADP) J.P. Morgan 54th Annual Global Technology, Media and Communications Conference summary

Macro environment and industry trends

• Labor and wage environment remains stable, with pays per control growth guided at roughly 1%.

• IT sector continues to add jobs, while trades and hospitality face more pressure.

• Employment data shows a low hire, low fire environment, with pockets of strength in recent reports.

• Complexity in human capital management is increasing due to AI and regulatory changes.

• Managing people and payroll is becoming more critical as work evolves.

Strategic positioning and competitive landscape

• Positioned as workforce infrastructure, thriving in complexity and regulatory environments.

• Retention and pricing are structurally strong, supported by investments in products and services.

• Competition is intense but drives innovation; spans all market segments from small to large enterprises.

• Actively studies competitors and adapts through partnerships and core functionality enhancements.

AI, technology, and product innovation

• AI is being infused across products and services, with ADP Assist deployed in all HCM domains.

• AI-driven efficiencies are emerging, notably in payroll processing and digital onboarding.

• Lyric platform expands addressable market, enabling dynamic team management and task-based workflows.

• Data and analytics tools are being monetized, with further growth expected from AI-driven solutions.