Embracing the Future: A Year of AI Integration in HR Modernization

Happy New Year! As we step into 2026, the rapid convergence of humans and AI has never been more apparent. Last year marked a pivotal moment that saw the emergence of collaborative work environments, where businesses are increasingly challenged to leverage AI effectively in their operations. The advent of advanced AI agents truly represents a turning point, transforming not only work methodologies but also the fabric of corporate structures.

Historically, organizations navigated their operational needs through traditional systems, emphasizing 'systems of record' for data management. However, Workday is spearheading a paradigm shift by redefining Enterprise Resource Planning (ERP) systems to not just house data but act on it. Their next-generation ERP offers insights that are predictive, responsive, and rooted in real business needs—essentially facilitating 'a new work day.'

In February 2025, Workday announced the introduction of its Agent System of Record (ASOR), which enables organizations to efficiently manage both human workforces and AI agents. By September, they unveiled an integrated developer platform that allows users to build, extend, and integrate AI-powered applications and agents directly within Workday. These technological advancements are driven by Workday’s commitment to Responsible AI principles, ensuring transparency, safety, and governance around AI deployment. This focus is crucial as companies seek secure and effective ways to incorporate AI agents into their workflows.

Furthermore, through the utilization of Workday Data Cloud, businesses can intertwine their clean data with external sources, thereby enhancing the capabilities of AI agents across platforms. This integration is aimed at creating a comprehensive ecosystem that fosters collaboration between human and AI agents, ultimately streamlining operations and improving productivity.

Yet, a glance at the Japanese workforce reveals a stark contrast. Many companies still adhere to outdated hierarchical methods and primarily aim for efficiency, lagging behind the global trend toward digital transformation. A recent survey by Workday revealed that only 14% of businesses believe they’ve seen substantial results from HR transformations. Challenges such as a shortage of transformational talent and leadership gaps stand in the way of progress.

To bridge this gap between Japanese organizations and the rest of the world, a holistic transformation is required, encompassing not only tools and technology but also shifts in human resource culture, data infrastructure, process reengineering, and mindset. Workday is dedicated to this cause, providing the necessary platforms and support for Japanese companies to successfully modernize their HR practices.

In a bid to strengthen its foothold in the Japanese market, Workday announced in December 2025 its partnership with Amazon Web Services (AWS) to leverage local data centers. This move enhances the security and reliability necessary for businesses, particularly in finance and public sectors, to adopt Workday services with greater confidence. Additionally, in a strategic effort to bolster its partner ecosystem, Workday has entered into new collaborations with Patos Logos, Inc. and Team Spirit, Inc., focusing on complicated areas such as payroll and attendance management.

As we approach the landscape of 2026, it's crucial for Japanese companies to harness the collaboration between humans and AI, utilizing it to bolster their competitive edge. Workday stands ready to assist clients on this transformative journey in HR modernization, reinforcing its commitment to helping businesses adapt, thrive, and create new value through innovative synergies between humans and AI.

Let's look forward to achieving new heights in collaboration, integration, and success this year!

Warm regards,

Chikara Furuichi,
Executive Officer & Japan Regional Head,
Workday, Inc.

About Workday

Workday provides an AI-driven enterprise platform that centralizes human resources, finance, and agents. By integrating HR and finance on one intelligent platform, Workday empowers organizations of all sizes to adapt quickly to change and equips them with clarity, reliability, and insights necessary for effective decision-making. With over 11,000 companies worldwide, including more than 65% of Fortune 500 companies, employing Workday, its evolution continues to shape the future of work. Learn more about Workday at Workday.com.

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Forward-Looking Statements

This press release contains forward-looking statements regarding Workday's leadership, growth, transformation, and potential. These statements are based on information currently available and are subject to numerous risks and uncertainties, which may lead to actual results differing materially from those expressed. Therefore, reliance on these forward-looking statements is cautioned against. Risks include those detailed in documents submitted to the SEC, among others.