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ADP Canada and Blue J Legal to Offer AI-based HR Foresight

Zacks Equity Research

Automatic Data Processing, Inc’s ADP subsidiary — ADP Canada — yesterday announced that it has partnered with Toronto-based Blue J Legal to integrate its HR Foresight tool to ADP HR Assist platform.

Through this integration, the company aims to offer Canadian small and mid-sized businesses (SMBs) knowhow about their obligations and risks under employment law.

Blue J Legal's HR Foresight tool provides insights about past court rules on many areas of employment law. It uses machine learning on data from previous cases to predict outcomes of employment and workplace scenarios. Worker Classification, Reasonable Notice, Managerial Exemption to Overtime, Duty to Accommodate Disabilities and Drug and Alcohol Testing are employment law areas that the tool covers.

We observe that shares of ADP have gained 13.1% in the past year, against the 0.3% decline of the industry it belongs.

Our Take

The move is a prime example of how ADP is utilizing its strong position in human capital management (HCM) and offering latest technologies to gain new clients and retain the existing ones.

It will enable ADP to boost employer services segment that offers a wide range of HCM and human resources outsourcing solutions.

Automatic Data Processing, Inc. Revenue (TTM)


Automatic Data Processing, Inc. Revenue (TTM) | Automatic Data Processing, Inc. Quote


Sooky Lee, division vice president and general manager, human resources outsourcing at ADP Canada, stated, “We’re seeing how automation and affordable access to the latest technologies can help to level the playing field between small businesses and large corporations, much to the benefit of the little guy”.

Zacks Rank & Stocks to Consider

ADP carries a Zacks Rank #4 (Sell).

A few better-ranked stocks in the broader Zacks Business Services sector are Republic Services RSG, Waste Connections WCN and Navigant Consulting NCI, each carrying a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Long-term expected EPS (three to five years) growth rate for Republic Services, Waste Connections and Navigant is 10.7%, 11.7% and 13.5%, respectively.

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