Workday (WDAY), Google Team Up to Develop AI Native Application
Workday Inc. WDAY has extended its partnership with Google Cloud to expedite intelligent AI native app development in Workday Extend platform. Under this collaboration, Workday has also launched its technology platforms in the Google Cloud Marketplace. It will allow both existing Google Cloud and new Workday customers to utilize a consolidated Google Cloud billing system, streamlining the purchasing process. The strategic partnership with Google Cloud will strengthen Workday’s product portfolio and broaden its customer reach across industries.
The current business landscape is ever-changing, owing to shifts in market trends, new government regulations or other unforeseen events. This necessitates a dynamic and versatile business model. Increasing complexity in the IT landscape induced by the growing proliferation of digitalization often leads to greater operating costs. The need for constant innovation and scalability to stay competitive in this fast-paced environment is a challenging endeavor.
Workday Extend, in collaboration with Google Cloud, aims to address these issues. There are many business specific requirements that may not be addressed by Workday core offerings. In such cases, Workday Extend allows organizations to build custom applications that work seamlessly with existing Workday Human Capital Management (HCM) and Workday Financial Management solutions.
In the recent venture with Google Cloud, Workday is incorporating the machine learning model, vertex AI, with Gemini’s advanced code generation, natural language processing and reasoning capabilities. This will enrich developers to efficiently search, analyze and retrieve information within Workday platforms leveraging Google’s generative AI.
Many businesses have to deal with the tedious task of handling a large pool of external documents such as invoices, various contracts and more. Google Cloud’s Document AI integrated into Workday Extend mitigates these issues by automating data extraction and making information readily accessible. This nullifies the requirements for manual data entry and boosts employee productivity.
The introduction of AI-powered code generation will facilitate faster application development at a lower cost. Simplified development processes and troubleshooting assistance will enhance developers’ productivity, enabling enterprises to address rapidly evolving market dynamics. The advancements in Workday Extend will make it ideal for a wide range of applications, from creating custom employee onboarding programs to developing new purchase requisition workflows and more.
Workday’s diversified product portfolio continues to yield a steady flow of customers. Its high customer satisfaction rate bodes well for its long-term business model. Moreover, it is gaining traction in the international market.
Workday is expanding its portfolio beyond core HCM solutions into the financial domain and is customizing them for diverse industries and verticals, such as education, the public and financial services, among others. This has helped the company witness strong renewals and expand its customer base as enterprises aim to consolidate spend and improve efficiency levels. This augurs well for the long-term growth of the company.
The stock has lost 1.1% in the past year against the industry's growth of 29.1%.
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Workday carries a Zacks Rank #4 (Sell) at present.
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