National News (14/09/2026): PhonePe is integrating artificial intelligence into consumer services, merchant tools, software development, customer support and corporate workflows, with a focus on measurable improvements rather than deploying AI indiscriminately.
PhonePe is broadening its use of artificial intelligence across its payments ecosystem as the fintech company looks to improve customer experiences, support merchants and automate complex internal processes. Rahul Chari, Founder and Chief Product & Technology Officer (CPTO) at PhonePe, outlined the company’s AI strategy at the Global Fintech Fest 2026. He said the company is pursuing a range of targeted AI applications instead of treating the technology as a universal solution for every business function.
According to Chari, meaningful AI adoption requires multiple systems and use cases working together across an organisation. The company is therefore evaluating AI initiatives based on whether they can deliver a measurable improvement in a product, process or operating metric.
AI-powered services for consumers
PhonePe is examining ways to make its consumer platform easier to navigate through AI-based search and conversational interfaces.
One area under development is universal search capable of interpreting natural-language queries and vernacular languages. Such a system could allow customers to describe what they want in everyday language and be directed to the appropriate service, including bill payments and gas bookings.
The company is also exploring AI assistants for personal financial management. Customers could potentially use conversational interfaces to understand their spending behaviour, identify patterns and seek guidance on their finances.
Similar capabilities could eventually be extended to financial products such as insurance and investments. PhonePe is also assessing agentic AI applications for savings and investment products, including digital gold and silver, systematic investment plans (SIPs), fixed deposits, recurring deposits and pension-related offerings.
The broader objective is to move beyond simple transaction execution and make the platform more capable of helping users make financial decisions.
AI tools aimed at merchants
PhonePe is also looking to apply AI to some of the operational challenges faced by small and medium-sized businesses and direct-to-consumer companies.
The fintech firm wants to simplify activities such as creating websites, integrating payment systems and connecting businesses with platforms such as Instagram and WhatsApp.
Its Smartpages offering is one example of this approach. The service enables businesses to establish an online presence while incorporating payment functionality, reducing some of the technical work traditionally required to launch a website.
PhonePe is also considering agentic capabilities within its PhonePe for Business application. These tools could assist merchants with responding to customer and business-related queries, as well as developing and distributing coupons, promotions and offers.
AI becomes part of software development
The company’s AI programme extends deep into its engineering organisation.
PhonePe is using AI across several stages of the software development lifecycle, including technical solution design, programming, code review, testing, deployment and post-deployment troubleshooting.
The fintech company has also developed internal AI-powered tools for engineering teams. TraceMine is designed to help analyse application crashes, while Lens combines information such as logs and deployment data to support initial root-cause analysis.
Another initiative, KadAI, focuses on centralised code orchestration and agentic software development.
By incorporating AI into engineering workflows, PhonePe is seeking to reduce the time engineers spend on repetitive analysis and troubleshooting while allowing teams to concentrate on more complex development work.
Internal teams get access to AI workflows
PhonePe has built an Agent Hub to help non-technology departments create and use AI-driven workflows.
The platform is being designed for a regulated financial-services environment, where issues such as information security, data access, data leakage and data localisation require tighter controls.
Rather than relying solely on external AI infrastructure, PhonePe uses its own large language model (LLM) routing layer and runs open-source models on its internal infrastructure. These systems can connect with the company’s internal tools and data sources.
Teams such as legal, compliance, finance and human resources are among those using or exploring these AI-enabled workflows.
PhonePe targets faster product approvals
One of the more ambitious applications involves the company’s new product introduction process.
Launching a financial product can require several checks covering compliance, privacy, legal requirements, trust and safety. PhonePe said this process can currently take roughly 30 days.
The company is exploring how AI can compress that timeline dramatically, with the potential to bring the process down to less than a day in suitable cases.
Such automation could allow teams to identify requirements and complete preliminary checks much faster while retaining the necessary safeguards for a regulated business.
Customer support and fraud detection see higher automation
PhonePe is also applying AI and automation to customer support and fraud investigations.
The company said automation in customer support has increased from about 90% to nearly 94%. Its stated goal is to raise the level further to around 96%, potentially allowing human support teams to focus on situations that require greater judgement or intervention.
Fraud detection is another major area of AI deployment. PhonePe said approximately 80% of fraud investigations can now be automated. Human investigators can consequently devote more time to complicated cases and emerging fraud techniques that may not yet be covered by automated systems.
The scale of PhonePe’s transaction network makes automation particularly significant. The company processes more than 10 billion transactions each month, with monthly volumes now approaching 12 billion.
Despite this scale, PhonePe said its customer-support operation has around 500 agents, highlighting the role automation can play in handling a large volume of queries and investigations.
PhonePe focuses on measurable AI outcomes
Rather than measuring its AI strategy simply by the number of tools or models deployed, PhonePe is placing greater emphasis on business outcomes.
Chari said the company wants each AI initiative to be tied to a clear operating metric and demonstrate a meaningful shift from the existing baseline.
That approach could shape how PhonePe expands its AI infrastructure in the coming years. Instead of introducing AI simply because the technology is available, the company is prioritising applications where automation, intelligent assistance or agentic systems can produce tangible benefits for customers, merchants or employees.
With AI now being tested across payments, personal finance, merchant services, engineering, fraud management and corporate functions, PhonePe’s strategy reflects a broader shift in fintech towards using artificial intelligence as an operational layer across the organisation rather than as a standalone feature.
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