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What is the story about?
PhonePe is deploying artificial intelligence across its consumer app, merchant ecosystem, engineering operations and internal workflows, Rahul Chari, Founder and Chief Product & Technology Officer (CPTO), said at the Global Fintech Fest 2026.
The company is focusing on specific use cases where AI can improve consumer experiences, merchant operations and internal processes, rather than applying the technology across every part of its platform.
"What we have seen and what we have learned is that there's no single silver bullet. It takes a bunch of different things across the entire gamut of the organisation to actually deliver on true AI impact for the end consumer and enterprise value to the company," Chari said.
AI for consumer services
PhonePe is exploring AI-powered universal search that can understand natural and vernacular language and direct users to relevant services. The system could handle queries related to gas bookings and bill payments in languages including Hindi, English and Tamil.
The company is also exploring conversational tools for personal finance, allowing users to ask questions about their spending patterns. Similar AI-based guidance is being considered for categories such as insurance and investments.
PhonePe is also exploring agentic features for savings and investment products, including gold, silver, SIPs, fixed deposits, recurring deposits and pension plans.
AI tools for businesses
For small and medium-sized businesses and direct-to-consumer businesses, PhonePe is looking to use AI to simplify tasks such as setting up websites, integrating payment gateways and connecting platforms including Instagram and WhatsApp.
Its Smartpages launch allows businesses to set up a website with automated payment integration. The company is also exploring agentic capabilities in its PhonePe for Business app for functions including handling business and customer queries and creating and distributing coupons and offers.
AI in engineering
PhonePe is applying AI across multiple stages of its software development lifecycle, including solutioning, coding, code reviews, testing, deployment, troubleshooting and debugging.
The company has built TraceMine for crash analysis and Lens to bring together information such as logs and deployment data for first-level root cause analysis. KadAI is focused on centralised code orchestration and agentic development.
Internal workflows
PhonePe has also developed an Agent Hub for non-technology teams to create AI-based workflows. The platform is designed for a regulated financial services environment, with controls around data access, data leakage and localisation.
The company uses its own LLM router and open-source models hosted on premises, while integrating internal tools and data sources. The system is being used by teams including legal, compliance, finance and HR.
PhonePe is also looking to use AI to reduce the time taken for its new product introduction process, which involves compliance, data privacy, legal, trust and safety checks, from around 30 days to potentially less than a day.
Customer support and fraud
PhonePe said automation across customer support has increased from around 90% to closer to 94%, with a target of reaching 96%.
The company also said 80% of fraud investigations can now be automated, allowing human teams to handle more complex cases and newer fraud patterns.
PhonePe processes more than 10 billion transactions a month, with the figure now closer to 12 billion, and has around 500 customer support agents.
Chari said the company is focusing on AI applications where the technology can produce a measurable change in how a product, process or operation works. "What is that operating metric that is going to see a baseline shift? And by doing that, you'll be doing the best that you can for your business and your consumers."
The company is focusing on specific use cases where AI can improve consumer experiences, merchant operations and internal processes, rather than applying the technology across every part of its platform.
"What we have seen and what we have learned is that there's no single silver bullet. It takes a bunch of different things across the entire gamut of the organisation to actually deliver on true AI impact for the end consumer and enterprise value to the company," Chari said.
AI for consumer services
PhonePe is exploring AI-powered universal search that can understand natural and vernacular language and direct users to relevant services. The system could handle queries related to gas bookings and bill payments in languages including Hindi, English and Tamil.
The company is also exploring conversational tools for personal finance, allowing users to ask questions about their spending patterns. Similar AI-based guidance is being considered for categories such as insurance and investments.
PhonePe is also exploring agentic features for savings and investment products, including gold, silver, SIPs, fixed deposits, recurring deposits and pension plans.
AI tools for businesses
For small and medium-sized businesses and direct-to-consumer businesses, PhonePe is looking to use AI to simplify tasks such as setting up websites, integrating payment gateways and connecting platforms including Instagram and WhatsApp.
Its Smartpages launch allows businesses to set up a website with automated payment integration. The company is also exploring agentic capabilities in its PhonePe for Business app for functions including handling business and customer queries and creating and distributing coupons and offers.
AI in engineering
PhonePe is applying AI across multiple stages of its software development lifecycle, including solutioning, coding, code reviews, testing, deployment, troubleshooting and debugging.
The company has built TraceMine for crash analysis and Lens to bring together information such as logs and deployment data for first-level root cause analysis. KadAI is focused on centralised code orchestration and agentic development.
Internal workflows
PhonePe has also developed an Agent Hub for non-technology teams to create AI-based workflows. The platform is designed for a regulated financial services environment, with controls around data access, data leakage and localisation.
The company uses its own LLM router and open-source models hosted on premises, while integrating internal tools and data sources. The system is being used by teams including legal, compliance, finance and HR.
PhonePe is also looking to use AI to reduce the time taken for its new product introduction process, which involves compliance, data privacy, legal, trust and safety checks, from around 30 days to potentially less than a day.
Customer support and fraud
PhonePe said automation across customer support has increased from around 90% to closer to 94%, with a target of reaching 96%.
The company also said 80% of fraud investigations can now be automated, allowing human teams to handle more complex cases and newer fraud patterns.
PhonePe processes more than 10 billion transactions a month, with the figure now closer to 12 billion, and has around 500 customer support agents.
Chari said the company is focusing on AI applications where the technology can produce a measurable change in how a product, process or operation works. "What is that operating metric that is going to see a baseline shift? And by doing that, you'll be doing the best that you can for your business and your consumers."
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