The big picture: Workday reported strong Q3 2026 earnings, with revenue up 12% year-over-year, and is strategically pivoting towards AI-driven solutions, expecting them to generate 70% of new revenue by FY 2028.

Why it matters: This aggressive AI focus by a major HR tech provider signals a significant shift in enterprise software, impacting how organizations manage talent, adopt new technologies, and plan for future workforce capabilities.

Between the lines:

• Workday's total addressable market (TAM) expanded to $276 billion, with $100 billion specifically for AI and platform solutions.
• The new Flex Credit model has already attracted nearly 300 customers, aiming to enhance revenue predictability.
• Management highlighted unprecedented innovation speed in developing new AI features.

Staffing & HR impact: The rapid adoption of AI in HR platforms will necessitate upskilling for HR and talent acquisition teams, potentially streamlining recruitment processes but also requiring new competencies for managing AI-driven insights. Staffing firms must adapt their service offerings to support clients integrating these advanced AI tools.

The bottom line: Workday's aggressive AI strategy positions it as a dominant player in the evolving HR tech landscape, with implications for how businesses will acquire, manage, and develop their workforces.