ISG Reports: AI and Automation Transform Workforce Management Software to Meet Modern Labor Challenges

Enterprises are increasingly turning to advanced workforce management (WFM) software to address ongoing labor challenges and optimize operations, according to new research from Information Services Group (ISG), a global AI-focused technology research and advisory firm. The report highlights how software innovations, particularly those driven by AI and automation, are enabling companies to make more informed, real-time decisions about their workforce. ISG's Buyers Guides™ for Workforce Management, which evaluate 23 software providers across various categories, indicate that enterprises are looking for solutions that can handle a broader spectrum of data and offer deeper insights. Recent advances in AI, generative AI (GenAI), and real-time analytics are making WFM software more powerful and user-friendly, with a focus on self-service tools that reduce costs and enhance flexibility. The core functions of basic WFM platforms include shift scheduling, time tracking, absence management, and demand forecasting. However, advanced WFM suites are adding sophisticated capabilities such as skills-based optimization and real-time cost simulation. These features allow companies to: Assess Cost and Compliance Risks: Evaluate potential risks associated with a particular worker roster before finalizing it. Increase Flexibility: Quickly bring in external resources from agencies or gig marketplaces if core staffing is insufficient. Skill-Based Scheduling: Make staffing decisions based on specific skills rather than job titles to better meet shift requirements. Enhance Employee Self-Service: Provide consumer-grade interfaces like chatbots for workers to choose shifts and resolve HR issues. The research underscores the impact of the tight labor market and the shift towards remote and hybrid work models. These changes have prompted many companies to update their WFM software roadmaps and practices to align with new workforce dynamics and expectations. Industry-specific applications of advanced WFM software are also highlighted in the report. For instance: Manufacturing: Combining AI-based schedules with real-time machine health data to optimize workforce utilization. Healthcare: Integrating electronic medical records and work rules into WFM software to accurately predict staffing needs. Retail: Using data from weather reports and foot-traffic patterns captured by computer vision to dynamically adjust rosters. ISG evaluated software providers across five platform categories: Workforce Management Basics, Workforce Management Suites, Workforce Management Healthcare, Workforce Management Manufacturing, and Workforce Management Retail. Oracle emerged as the top-rated provider across all categories, consistently named a Leader in all seven evaluation criteria: usability, manageability, reliability, capability, adaptability, validation, and total cost of ownership and return on investment (TCO/ROI). Other notable leaders include ADP and UKG, which also received high rankings in multiple categories. In the Workforce Management Basics category, Oracle, ADP, and UKG were the top three providers, with Oracle being a Leader in all seven categories. Similarly, in the Workforce Management Suites, Healthcare, Manufacturing, and Retail categories, Oracle took the lead, followed closely by ADP and UKG. Mark Smith, partner and chief software analyst at ISG Software Research, noted the importance of WFM software, especially for businesses relying on hourly workers. "Workforce management software has become increasingly flexible in self-service scheduling and pay options for workers," he said. "This research provides new opportunities for organizations to assess their existing providers and identify those best positioned to lead in the AI software-driven economy." The ISG Buyers Guides™ for Workforce Management are the result of extensive market and product research spanning over a year. They offer an unbiased evaluation of software providers, helping enterprises make informed decisions. The guides are available via the ISG website and through direct contact with ISG Software Research. ISG Software Research is a division of ISG, which is a leading global technology research and advisory firm. Founded in 2006, ISG serves more than 900 clients, including 75 of the world’s top 100 enterprises. The firm is recognized for its proprietary market data, deep understanding of provider ecosystems, and the collective expertise of its 1,600 professionals worldwide. ISG's focus on AI and automation aims to help organizations achieve operational excellence and faster growth by maximizing the value of their technology investments.