Dayforce Expands Collaboration with Microsoft to Transform HCM Workflows With AI

Rhea-AI Summary

Dayforce (NYSE: DAY) on October 7, 2025 announced an expanded collaboration with Microsoft to embed Dayforce AI Agents into everyday HCM workflows using Microsoft Copilot Studio and the Microsoft technology stack.

The integration emphasizes a single, unified Dayforce platform built with Microsoft Azure, Power BI, Entra ID, Teams, and .NET to enable secure interoperability, custom AI agents via Dayforce APIs, adoption of the Model Context Protocol (MCP), and cross‑domain workflows across HR, payroll, IT, and operations.

Positive

• Integrated with Microsoft Copilot Studio for custom AI agents
• Built end-to-end on Microsoft Azure, Power BI, Entra ID, and Teams
• Supports Model Context Protocol (MCP) for cross-system interoperability

Negative

• Platform dependency on Microsoft technology stack may concentrate vendor risk

Insights

Product-Strategy & Partnerships Expert

Expanded Dayforce–Microsoft integration embeds Copilot-powered AI agents into core HCM workflows, aiming to unify HR, payroll and IT.

**Dayforce** deepens its technical alignment with **Microsoft** by using Microsoft Copilot Studio and the Microsoft technology stack (including Azure, Power BI, Entra ID, Teams, and .NET) to deliver AI agents inside the single Dayforce application. The move targets reduced fragmentation by placing personalized agents and workforce insights directly in employees' daily flows, and it explicitly supports Model Context Protocol (MCP) and Dayforce APIs for extension and interoperability.

The announcement depends on three measurable elements named in the release: secure access to workforce and payroll data within workflows, integration via Microsoft Copilot Studio, and marketplace availability tied to Azure. Key risks stated or implied include customer adoption of the new agent workflows, customers' trust in how AI accesses employee/payroll data, and the technical work to ensure seamless interoperability across third-party apps.

Watch for customer rollout details from Dayforce Discover on or after Oct. 07, 2025, published adoption case studies, and technical indicators such as MCP adoption and Azure Marketplace listings; these will show whether the integration moves from announcement to measurable enterprise use over the next 6–18 months.

Collaboration combines the power of the single Dayforce platform with Microsoft Copilot Studio to deliver trusted AI agents across HR, payroll, and business operations

MINNEAPOLIS and TORONTO, Oct. 07, 2025 (GLOBE NEWSWIRE) -- Dayforce, Inc. (NYSE: DAY; TSX: DAY), a global leader that makes work life better, today announced an expansion of its collaboration with Microsoft to bring Dayforce AI Agents into everyday workflows. Unlike HCM vendors that rely on separate modules and add-on integrations, Dayforce delivers the differentiated advantage of a single, unified application built end-to-end with Microsoft technologies – including Microsoft Azure, Microsoft Power BI, Microsoft Entra ID, Microsoft Teams, and .NET. This AI-powered integration enables organizations to achieve greater interoperability, faster innovation, and more value from their Microsoft investments. The announcement was made at Dayforce Discover, alongside several advancements that empower customers to better plan, grow, and deliver using the Dayforce AI-powered people platform.

Organizations today face growing pressure to drive efficiency, deliver better employee experiences, and ensure trust in how AI is applied to work. Yet too often, HR, payroll, and business systems remain fragmented, forcing employees to navigate manual processes and disconnected tools.

Integration with Microsoft Copilot Studio brings custom, personalized AI agents directly into Dayforce – the platform employees and managers use every day – uniting HR, payroll, and IT in one seamless experience. These agents can also securely access workforce information, from employee details to payroll insights, within that same flow of work.

“By harnessing the full power of the Microsoft technology stack, Dayforce is redefining how organizations unlock value from their technology investments – freeing employees to focus on the work they’re truly meant to do,” said Joe Korngiebel, Chief Strategy, Product, and Technology Officer at Dayforce, Inc. “Together with Microsoft, we’re delivering a smarter, more seamless experience that improves the daily flow of work, empowers leaders to automate with confidence, and connects people and data in ways that drive meaningful impact.”

Powered by Microsoft, the differentiated Dayforce platform extends from the data foundation to AI agents, helping organizations maximize the value out of their technology investments by enabling leaders to:

• Extend and customize with AI agents – build and deploy agents using Dayforce APIs and Microsoft Copilot Studio to streamline work, simplify decisions, and boost productivity.
• Integrate and interoperate securely – connect with third-party applications, adopt the Model Context Protocol (MCP), and ensure seamless interoperability across systems.
• Unify cross-domain workflows – bring HR, payroll, IT, and operations into one flow of work. For example, IT managers can create agents that answer policy questions or surface workforce and payroll insights directly in Microsoft tools.
  

“Our strengthened collaboration with Dayforce combines the global scale, security, and performance of Microsoft Azure with Dayforce’s AI-powered innovation to solve workforce challenges in new ways. We’re enabling mission-critical workloads while accelerating innovation – helping organizations move faster, empower employees, and thrive in a new era of work,” said Mark Russinovich, CTO, Deputy CISO, and Technical Fellow of Microsoft Azure. “Together with Dayforce, we’re delivering trusted AI solutions on a secure, scalable cloud foundation that drive real outcomes for organizations and the people who make them run."

Additional Information 

• Read the press release, “Dayforce Introduces New Dayforce AI Agents to Accelerate How Work Gets Done”
• Read the press release, “Dayforce Launches Strategic Workforce Planning”
• Read the press release, “Dayforce Announces Dayforce AI Workspace”
• Read the press release, “Dayforce Now Available in the Microsoft Azure Marketplace” 
• Read the blog: “What’s next for HR and payroll? Big reveals from Dayforce Discover 2025”
• Read the blog: “New from Dayforce Discover: AI that helps you plan, deliver, and grow”

About Dayforce

Dayforce makes work life better. Everything we do as a global leader in HCM technology is focused on enabling thousands of customers and millions of employees around the world to do the work they're meant to do. With our single AI-powered people platform for HR, Pay, Time, Talent, and Analytics, organizations of all sizes and industries are benefiting from simplicity at scale with Dayforce to help unlock their full workforce potential, operate with confidence, and realize quantifiable value. To learn more, visit dayforce.com.

Forward Looking Statements 

This press release includes “forward-looking statements” within the meaning of the “safe harbor” provisions of the United States Private Securities Litigation Reform Act of 1995 that are subject to risks and uncertainties.  All statements other than statements of historical fact contained in this press release are forward-looking statements, including statements regarding our projected business strategies and growth, future product developments and features, and our expectations, hopes, intentions, or strategies regarding the future. These statements may include words such as “anticipate,” “estimate,” “expect,” "assume", “project,” “seek,” “plan,” “intend,” “believe,” “will,” “may,” “could,” “continue,” “likely,” “should,” and other words and terms of similar meaning in connection with any discussion of the timing or nature of future operating or financial performance or other events, but not all forward-looking statements contain these identifying words. These statements are only current predictions and are subject to known and unknown risks, uncertainties and other factors that may cause our or our industry’s actual results, levels of activity, performance or achievements to be materially different from those anticipated by the forward-looking statements. This press release should be read in conjunction with the risks detailed in the “Cautionary Note Regarding Forward-Looking Statements”, “Forward-Looking Statements”, “Risk Factors”, and other sections of Dayforce’s Quarterly Reports on Form 10-Q, Annual Reports on Form 10-K and other reports we file with the Securities and Exchange Commission. Although we believe that the expectations reflected in the forward-looking statements are reasonable, we cannot guarantee future results, levels of activity, performance or achievements. There may be additional risks that Dayforce presently does not know of or that Dayforce currently believes are immaterial that could also cause actual results to differ from those contained in the forward-looking statements. The forward-looking statements included in this press release are made only as of the date hereof. Dayforce assumes no obligation and does not intend to update these forward-looking statements, except as required by law.  

Media Contact
Teri Murphy
647-417-2117
Teri.Murphy@dayforce.com

FAQ

What did Dayforce announce on October 7, 2025 about Microsoft integration?

Dayforce announced expanded collaboration to embed Dayforce AI Agents using Microsoft Copilot Studio and the Microsoft tech stack.

How will Dayforce AI Agents be deployed with Microsoft Copilot Studio for DAY?

Organizations can build and deploy custom AI agents using Dayforce APIs and Microsoft Copilot Studio integrated into Dayforce workflows.

Which Microsoft technologies power the Dayforce (DAY) integration?

The integration uses Microsoft Azure, Power BI, Entra ID, Teams, and .NET as the underlying technology stack.

What workflows does the Dayforce and Microsoft partnership target for DAY customers?

The partnership targets unified workflows across HR, payroll, IT, and operations inside Dayforce.

Does the Dayforce announcement mention security or interoperability features for DAY?

Yes; it highlights secure third‑party connections, adoption of the Model Context Protocol (MCP), and seamless interoperability.

Where can DAY customers access more details on the new AI and Microsoft features?

Additional information is available through Dayforce press releases and blogs linked in the announcement about AI Agents, AI Workspace, and Azure Marketplace availability.