Remote, an Amsterdam-based payroll service provider, has surpassed $300 million in annual recurring revenue and achieved cash-flow positivity, according to CEO Job van der Voort. The company attributes this growth to its adoption of AI across all levels of the organization, resulting in a 50% increase in revenue per employee without expanding its workforce. Van der Voort explained that AI tools like a Slack agent for summarizing discussions and experiments with agentic AI have enabled these efficiency gains. Employees across various functions have been using Remote Labs, an internal marketplace built on the company’s own technology, to create custom workflows.

The startup is now offering similar capabilities to its clients, helping them develop tailored processes. Remote’s core payroll business has grown more than 300% year over year, though the company has not provided independent verification of that figure. Remote also serves tens of thousands of companies navigating global employment compliance, a number it claims internally. The company has automated repetitive tasks in payroll, making the process easier and more efficient.

Remote’s competitors have largely adopted an 'all-in-one' HR platform model, but Remote remains focused on its core payroll problem. The company recently launched Remote MCP, an interface based on the Model Context Protocol, allowing AI agents and external platforms to access payroll and compliance data securely. This aligns with the rise of agentic AI, which could lead to companies becoming more virtual. Van der Voort noted that AI agents could eventually interact directly with Remote, with secure access to sensitive data.

His personal AI assistant, Jim, has been used to explore these capabilities. Remote has also embraced AI-powered coding, with over 85% of its code now written by AI, leading to a 60% increase in engineering contributions. The company is evaluating whether to hire more people or upskill existing staff to use AI tools effectively. Van der Voort emphasized that while AI costs are rising, the company’s efficiency gains provide space for investment in AI initiatives.

Source: techcrunch