PhonePe uses AI to improve technology operations while reducing support staff by 60%. Automation has increased transactions 40 times, thereby changing the financial scene in India.

Fintech is just one of many businesses around the world that are evolving thanks to artificial intelligence (AI). AI is used by PhonePe, one of the leading companies in this space, to improve productivity and streamline processes. From 1,100 agents to just over 400, the company has dramatically reduced its customer service staff by 60% over the past five years. Despite this decline, the financial giant saw a 40-fold increase in transactions, highlighting the game-changing influence that artificial intelligence can have on customer support and overall business expansion.

PhonePe’s Strategic Workforce Reduction and AI Integration

PhonePe has changed significantly over the past five years. The company’s customer service division shrank from about 1,100 agents to just over 400 after laying off 60% of its employees. Thanks to advances in AI, the financial giant was able to manage this transformation without compromising the quality of its customer support.

Artificial intelligence is at the center of this change. More than 90% of consumer inquiries are resolved by PhonePe’s AI-powered chatbots and automated systems, without requiring human participation. By providing quick and efficient solutions, these intelligent technologies free up human agents to handle more complex problems.

Customer satisfaction increased despite reducing human support staff. An important measure of customer happiness, PhonePe’s Net Promoter Score (NPS), increases every year. This illustrates how, when used correctly, AI can improve the customer experience while reducing expenses.

The Rise of AI-Driven Transactions at PhonePe

In these five years, PhonePe has seen a 40x increase in transactions. AI-based systems that efficiently manage payments, inquiries and consumer contacts make this possible.

PhonePe expanded its operations without adding additional employees by automating repetitive tasks. With AI algorithms ensuring efficiency and security, fintech now processes millions of transactions every day.

The broader fintech landscape in India is seeing a similar trend. Companies like PhonePe are paving the way for widespread adoption of AI, enabling the digital payments revolution to reach new heights.

Job creation in a context of downsizing

Despite reducing its customer support staff, PhonePe has created over 22,000 new jobs across India. These roles focus on areas such as engineering, data analytics and technology development, which are crucial to driving PhonePe’s AI and fintech innovations.

PhonePe employs over 1,500 of India’s best engineers, all working on cutting-edge solutions to support the company’s ambitious goals. From AI-powered payment systems to enhanced customer service tools, these engineers are shaping the future of digital payments.

PhonePe’s financial growth

PhonePe’s financial growth has been impressive. For the financial year ended March 2024, the company reported revenue of ₹5,064 crore, 74% higher than the previous year. The growing use of AI-based technologies and digital payments has driven this expansion.

Except for employee stock ownership plan (ESOP) expenses, PhonePe achieved profitability in addition to sales growth. The company’s adjusted net profit for FY24 of ₹197 crore represented a substantial improvement over the loss of ₹738 crore recorded in the previous year. This change is mainly attributable to the increased efficiency of AI.

AI has allowed PhonePe to reduce its customer service workforce while opening up opportunities in high-tech roles. Similar trends are likely for the future: some jobs may become obsolete, while new opportunities in areas such as data analysis and AI development may arise.

The success of PhonePe is an example of the significant impact of AI on fintech operations. The company has managed to reduce expenses while growing by automating repetitive processes and improving the customer experience. PhonePe is in a strong position to continue to spearhead the digital payments revolution in India with its AI foundation.

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