Paycom Software (PAYC) Citi’s 2025 Global Technology, Media and Telecommunications Conference summary

Business transformation and automation

• Transitioned from a user-driven to a fully automated, command-driven system, reducing manual navigation and decision fatigue for clients and employees.

• Automation tools like GONE and Beti have streamlined HR processes, increasing consistency and value.

• The IWant AI assistant enables users to interact with the system via natural language, eliminating the need for training and navigation.

• Over 50% of clients adopted IWant within weeks, with full rollout expected shortly.

• Automation strategy is seen as a key differentiator and growth driver.

AI product strategy and impact

• IWant operates across the entire system, providing answers or direct navigation, leveraging a single source of truth.

• AI adoption is driving increased sales, higher retention, and more module attachments as clients realize added value.

• IWant was rolled out rapidly, with strong positive feedback and no additional charge to clients.

• Future AI development will enable users to commit changes and perform complex analysis through natural language.

• The vision is a fully automated "brain" for HR and payroll, minimizing client involvement.

Financial and operational investments

• Significant, front-loaded CapEx investment in AI infrastructure, raising CapEx to 15% for the year, but expected to drop below 10% next year.

• Managing proprietary data centers allows for rapid deployment and long-term cost savings, with ongoing AI costs projected to be 95% lower than competitors.

• Free cash flow is expected to converge as AI investments normalize, with no major negative impacts anticipated.

• Tax changes will provide a temporary cash benefit in the second half of the year.