Workday purchases AI Company Sana at $1.1B, adding automation features and intelligent workforce management software to its cloud-based HR software.

Workday has acquired AI Company Sana in a deal worth around 1.1 billion, and it marks the increasing consolidation in the HR software industry. The relocation is prompted by the increase in the adoption of AI technologies within software solutions by companies as a way of keeping up with customer demands.

Founded in 2016, Sana concentrates on creating AI agents to automate specific processes. Within the framework of Workday, Sana will continue developing tools that will further enhance the automation of HR processes. Workday currently uses cloud-based software architecture to handle services including recruitment, payroll, accounting, and auditing and the integration of the technology of Sana will also make the operations more streamlined.

Through this acquisition, Workday clients, such as hiring managers, will be in a position to create custom dashboards and automate the performance review process, among other HR processes. This is in addition to the more recent acquisition of Paradox, an AI-based talent acquisition suite by Workday, which assists companies in finding, hiring and onboarding employees in an efficient manner.

The acquisition, which is projected to be finalized in the fourth quarter of the fiscal year 2026 of Workday, is indicative of the larger trends in the software market, which sees large players heavily investing in AI-driven solutions. Analysts believe the consolidation is a move to increase cloud-based HR solutions and customer experience.

The acquisition of Sana puts Workday in a good position to better serve the enterprises that are interested in integrated HR software with AI features that would be able to offer more efficient, intelligent, and automated workforce management solutions.