Europe Embraces AI-Driven Workday Optimization

European enterprises that have migrated to the cloud-based Workday platform are now optimizing their Workday deployments to achieve better business outcomes, according to a new research report published today by Information Services Group (ISG) (Nasdaq: III), a global AI-centered technology research and advisory firm.

The 2025 ISG Provider Lens Workday Ecosystem report for Europe finds that organizations are using Workday as a strategic platform to improve agility, compliance and employee engagement. Companies are integrating AI, automation and environmental, social and governance (ESG) analytics in their Workday implementations to achieve results such as faster hiring, quicker financial closing processes and compliant, multilingual onboarding.

“Enterprises across Europe are entering a new phase of Workday maturity,” said Stacey Cadigan, partner, ISG Human Capital Management and Enterprise Transformation. “They are no longer focused on initial implementation but on measurable results. The emphasis has shifted to continuous improvement and creation of value.”

Workday’s AI features have moved from experimentation to everyday use, the report says. Enterprises are deploying AI agents to accelerate hiring, verify payroll, conduct audits and enforce policies. Governance frameworks provide for consistency, security and accountability. Companies are using Workday’s agentic AI to execute multistep workflows, including conversational hiring, compliance-ready onboarding and automated financial close. Providers help to deploy region-specific solutions, using Workday’s unified HR and finance data to strengthen regulatory readiness.

The platform’s expanding capabilities serve an increasing enterprise focus on employee experience, ISG says. Enterprises recognize that a good employee experience has a direct impact on productivity and employer brand reputation. Companies are utilizing Workday’s mobile-first, self-service features to make it easier for employees to manage HR and finance tasks in their local languages. In sectors such as retail and hospitality, localized onboarding processes have reduced early attrition, while in professional services, personalized dashboards have increased internal mobility and retention.