Artificial Intelligence (AI) is no longer a futuristic buzzword—it is reshaping the very core of work today. For companies that rely on global contractors, freelancers, and remote talent, AI is transforming how we hire, onboard, manage, and pay. What was once a slow, manual, and compliance-heavy process is becoming smarter, faster, and more human-centered.

As the CEO of TFY, I’ve seen first-hand how AI-powered solutions are revolutionising contractor management and payments. This shift is not only improving efficiency for businesses but also creating more equitable opportunities for workers worldwide.

A 2023 WorldCC report, sponsored by Icertis, illustrates how nearly 42% of organisations now deploy AI in contract management to reduce value erosion and drive efficiency.

Automating onboarding and compliance

Bringing an independent contractor on board used to take days, if not weeks. Companies had to collect documentation, verify identities, check tax residency, and generate contracts that complied with local labor laws. Each country had its own rules, making global hiring a daunting challenge.

AI changes this by automating key steps:

• Identity verification through document scanning and real-time fraud checks.
• Automated contract generation that adapts terms based on local regulations.
• Classification checks to ensure contractors are not misclassified, reducing legal risks.

This means businesses can expand globally with confidence, while contractors enjoy a seamless, friction-free start.

Streamlining payments across borders

For contractors, payment is the single most critical touchpoint with a company. Delays, hidden fees, and errors undermine trust and discourage long-term relationships. Traditionally, managing cross-border payments required navigating multiple banks, currencies, and compliance checks.

AI-powered payment engines are eliminating these headaches. They:

• Automate currency conversion at optimal rates.
• Ensure tax compliance in multiple jurisdictions.
• Support a wide range of payout options, from bank transfers to e-wallets and prepaid cards.

The result? Faster, more transparent, and more reliable payments. For many contractors, same-day payments are now possible—something that would have been unthinkable just a few years ago.

Smarter fraud detection and risk management

Fraud is a growing concern in global payments. Fake invoices, duplicate submissions, or misuse of credentials can cost businesses millions. AI excels at detecting anomalies and preventing fraud before it happens.

By analyzing transaction histories and identifying unusual patterns, AI systems flag suspicious activity in real time. This not only protects businesses but also gives contractors peace of mind that their payments are safe and secure.

Visa notes that generative AI has transformative potential for payment—enhancing regulatory compliance, customer segmentation, and risk management in highly regulated environments.

Workforce analytics and forecasting

AI isn’t just about streamlining today’s operations—it’s also about shaping tomorrow’s workforce. By analysing hiring trends, contractor performance, and project data, AI can:

• Forecast workforce needs in advance.
• Identify skill gaps within teams.
• Recommend optimal contractor mixes for specific projects.

For entrepreneurs and business leaders, this intelligence provides a competitive edge. Instead of reacting to shortages, they can proactively source talent, often before competitors even realise a gap exists.

A 2024 study published in IJFMR reveals that AI-driven workforce management significantly boosts productivity and efficiency, especially in predictive scheduling and decision-making functions.

Driving cost efficiency and scale

Managing a global contractor workforce involves hidden costs such as compliance overhead, payment processing fees, and time wasted on manual tasks. AI drastically reduces these costs.

For instance, payment algorithms can recommend the most cost-effective payout schedules or payment rails. Compliance tools can cut hours of manual legal review. HR teams, freed from repetitive tasks, can focus on building meaningful relationships with talent.

This scalability is especially crucial for startups and fast-growing businesses that need to expand quickly without ballooning overhead.

Building a human-centred future of work

The real power of AI lies not in replacing people, but in empowering them. By handling repetitive, error-prone tasks, AI gives humans the space to focus on creativity, strategy, and connection.

At TFY, we’ve seen how AI-powered platforms open doors for vulnerable groups—refugees, single parents, people living in war and post-war zones, or people in regions with limited financial infrastructure. When they are onboarded fairly, paid transparently, and included in global projects, work becomes not just a paycheck, but a lifeline. It transforms entire communities by providing access to remote jobs with companies headquartered miles away.

That’s the human side of AI: restoring dignity through trust and reliability. Having said so, AI needs to be utilised with caution, especially when it comes to candidate matching algorithms, access to financial products, insurance or education. People shall never be excluded or denied access to career advancement or financial products merely based on the outcome of AI-matching algorithms.

Here’s an example with one ot TFY’s business clients, a software development company hiring engineers remotely across the globe:

Each time they post a job, 600 candidates apply on average, as all-remote jobs are becoming harder to find.

How do recruiters feel about it? Overwhelmed, of course. Going through all 600 applications manually is an ambitious task, to say the least.

Here’s how AI saves recruiters’ day: The predictive hiring algorithm highlights the top 10 candidates with the highest predicted success rate. However, the remaining 590 candidates are on the list, and AI has already suggested whether any open roles might be a good fit for them. A simple click of a button and those candidates are transferred to roles that are a better fit.

Artificial Intelligence is redefining contractor management and payments on a global scale. By automating onboarding, streamlining payments, enhancing fraud detection, and delivering predictive workforce insights, AI is turning traditional challenges into opportunities.

For entrepreneurs, the message is clear: adopting AI in contractor management isn’t just about efficiency—it’s about building a fairer, faster, and more human-centered future of work.

The businesses that embrace this shift now will not only scale faster but also create deeper trust with the very people powering their growth: their global workforce.