Asure’s luna AI and HR shift supercharge SMB growth
The gist
Asure Software’s Luna AI and new managed HR service, AsureWorks, are turbocharging SMB growth and revenue—even as analysts eye the impact of rapid AI adoption with a dash of market caution.
What to know
- By early 2026, Luna AI is automating payroll, HR, tax, and compliance for 100,000+ SMBs, powering efficiency for over two million US employees.
- Asure’s enterprise payroll-tax services have ballooned from $2.5M in 2020 to $25M in 2026, now fueling 18% of total revenue with $100M in sight.
- Launched January 2026, AsureWorks offers managed HR for small businesses at $50K/year—less than half the cost of a full-time HR hire—aiming to double product adoption per customer.
Agentic AI Transforms HR
Luna AI’s 50 advanced automations autonomously resolve payroll and compliance tasks, freeing SMB teams from administrative overload and driving unprecedented operational efficiency.
By early 2026, Asure Software’s Luna AI platform has revolutionized payroll, HR, tax, and compliance operations for over 100,000 SMBs across the US and Canada by integrating 50 advanced automations that save both time and money. These agentic AI capabilities go beyond simple query responses to autonomously recognize issues, take next actions, and complete complex workflows, significantly reducing administrative burdens and enhancing operational efficiency for employers and employees alike.
Embedded deeply within AsureCentral and the company’s payroll tax infrastructure, Luna AI supports more than two million US employees by enabling natural language interactions that streamline routine tasks such as PTO management, document tracking, and compliance monitoring. This seamless automation not only boosts customer support responsiveness but also elevates sales productivity by enhancing the overall value proposition of Asure’s recurring revenue payroll and HR solutions.
Payroll Tax Revenue Surge
Asure’s payroll-tax services, supercharged by acquisitions and cross-selling, have become a powerhouse business line—growing tenfold since 2020 and emerging as the company’s top medium-term growth engine.
Since acquiring a payroll tax-management platform in 2020, Asure Software has aggressively expanded its enterprise payroll-tax services, transforming a modest $2 million to $2.5 million revenue stream into a robust $25 million business by 2026. This segment now represents a significant 18% of Asure's overall revenue, underscoring its strategic importance amid a portfolio dominated by small- and medium-sized payroll clients. With projections aiming for $100 million in revenue, enterprise payroll-tax services stand out as Asure's largest medium-term growth opportunity, fueled by targeted acquisitions and a sharpened focus on cross-selling within its diversified offerings.
Managed HR at Half the Cost
AsureWorks’ shift to a managed service model enables SMBs to access full-scale HR support for less than half the price of an in-house hire, doubling product adoption and recurring revenue potential.
Launched in January 2026, AsureWorks represents a strategic pivot for Asure Software from purely software solutions to a managed HR service model, where the company directly performs HR-related tasks for clients. This initiative is central to management’s ambitious goal of doubling average product adoption per customer from two to four or more, thereby significantly enhancing cross-selling opportunities and bolstering recurring revenue streams.
AsureWorks offers a compelling value proposition for small businesses by providing a cost-effective alternative to hiring an in-house HR representative. According to McKillop, while a full-time HR hire typically costs around $125,000 annually, AsureWorks can deliver comparable managed HR services for approximately $50,000 per year, making it an attractive option for companies looking to optimize HR expenses without sacrificing service quality.