Workday just announced a $1.1 billion acquisition of AI firm Sana — a signal that AI is no longer a “nice to have” but a core driver of business operations. Sana, founded in 2016, builds AI agents that help automate HR functions like onboarding, payroll, and performance reviews. As part of Workday, Sana’s technology will power tailored dashboards and automate performance review processes — raising the standard for how companies manage people and data. This deal is part of a broader consolidation trend in HR software: ▪️Last month, private equity firm Thoma Bravo agreed to acquire Dayforce (a competitor to Workday) in a ~$12.3B deal. ▪️Earlier this year, Paychex acquired Paycor for $4.1B. ▪️In 2024, ADP purchased WorkForce Software for about $1.2B. 🗣️ Why It Matters for Business Leaders 1. AI is reshaping the back office. HR, compliance, and workforce management are rapidly becoming AI-powered. 2. Consolidation raises the stakes. Enterprise customers will expect AI-enabled features; smaller players may become acquisition targets or risk falling behind. 3. Operational excellence is being redefined. Organizations that embed AI into HR and operations will likely outperform peers in efficiency, retention, and regulatory/compliance outcomes. Leadership Takeaways 📝 ▪️Audit internal processes: identify repetitive tasks that could be automated. ▪️Invest in clean data: AI depends on accurate, high-quality HR and workforce information. ▪️Prepare for culture shifts: AI changes how performance, hiring, onboarding are done — leaders must guide the human side, not just implement tech. Let’s Discuss 💬 👉 Which HR or operations function in your organization is most ready for AI integration? 👉 Does consolidation in HR tech feel like a security (stronger platforms) or a risk (less competition, vendor dependency)? 🔗 Read the full Reuters article: reuters.com/... Analysis by Kieran Blanks, Chief Product Officer at OHUB. Source: Reuters.