ADP's Sreeni Kutam: We’re using AI everywhere
Summary
- The corporate AI narrative has shifted from a "scramble" of pilots in 2025 to focused, targeted adoption in 2026.
- ADP is witnessing tangible productivity gains, specifically noting that early-tenure associates are ramping up faster and performing better when using AI tools.
- There is a positive feedback loop between talent and technology: high-performing employees are statistically more likely to adopt AI tools, leading to even higher engagement and output.
Trade Ideas
Kutam states ADP is using AI "everywhere" and explicitly highlights "acceleration of productivity at the early tenure associates" and higher engagement levels among users. The transition from "pilots" to "targeted adoption" indicates ADP is successfully operationalizing AI to drive margin expansion. By accelerating the productivity curve for new hires (early tenure), ADP reduces training costs and improves service delivery efficiency. This operational leverage makes the stock attractive as it moves beyond hype to execution. Long ADP as a prime example of a "System of Record" incumbent successfully monetizing AI for internal efficiency. Implementation costs outweighing productivity gains; data privacy concerns regarding sensitive HR/payroll data.
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This CNBC video, published February 24, 2026, features Sreeni Kutam discussing ADP. 1 trade idea extracted by AI with direction and confidence scoring.
Speakers: Sreeni Kutam · Tickers: ADP