Paytm bets big on AI to drive efficiency, save employee costs

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Paytm on Monday said that the fintech firm intends to in 2024 leverage AI-powered automation to drive efficiency and eliminate repetitive tasks.

Such a strategy is expected to result in a “slight reduction” in the workforce in operations and marketing, according to a Paytm Spokesperson. “We will be able to save 10-15 per cent in employee costs as AI has delivered more than we expected it to. Additionally, we constantly evaluate cases of non-performance throughout the year”, the spokesperson added.

significant remark

This remark is significant as it comes amid media reports that Paytm has laid off more than 1,000 employees from its operations, sales, and engineering team to improve efficiency.

Paytm Spokesperson added “Our core business of payment may see manpower increase by 15,000 more in the coming year. With a dominant position in the payments platform and a proven profitable business model, we will continue to innovate for India. In this, Insurance and Wealth will be a logical expansion of our platform, in continuation of our focus on the existing businesses. Having shown the strength of our distribution-based business model in loan distribution, we are expanding the same to focus on new businesses to drive scale.”

Meanwhile, Vijay Shekhar Sharma, CEO, Paytm said in a ‘X’ post that Paytm is already expanding its use of AI in customer care operations and is currently working on personalising user experience using AI.

He also said that the company has already changed the Paytm app’s home screen and that the Paytm Payments Bank and other group entities offerings have been separated.

Paytm had reported operating profitability in early 2023, and is now eyeing EBITDA-level profitability. In the second quarter this fiscal, Paytm’s revenues from operations were up 32 per cent year on year to ₹2519 crore and its EBITDA before ESOP cost had improved to ₹153 crore as compared to ₹84 crore in Q1FY24 (excluding UPI incentives)