Paytm Aims To Drive Efficiency, Improve Business Operations Using AI-First Approach

Fintech company Paytm is accelerating the adoption of artificial intelligence as the technology enables deployment of features faster within the core tech and product functions, the company said during its earnings call for the third quarter.

According to Paytm, AI-powered automation has helped drive efficiency by automating several tasks. “So far, AI has delivered more than what we expected, and we expect our AI-first approach will allow us to drive operating leverage across various functions, including business and operations,” Paytm said.

Addressing analysts at the earnings call, Paytm founder and CEO Vijay Shekhar Sharma said, “In the last two quarters, the technology world has seen a dramatic revolution to the power of AI. We have seen our company using AI in different use cases. Our financial services will leverage the power of AI, marketing and customer relations will also be accelerated with this.”

“Instead of expanding business functions, we are trying to add capabilities of machines and systems to the platform. The systems will continue to grow and this will create demand in a linear way of the number of people we need,” said Sharma.

Paytm said that one of its primary strategies is to use AI to cut costs. “Our focus on AI-led efficiency is set to further drive operating leverage,” the company said in a blog post. “In the current quarter, our indirect expenses (as a percentage of revenue) have declined to 46% from 49%" over the same period last year, it said.

The company also said that it has been leveraging AI to make product development more efficient, cutting the cycle from weeks to days.