India-based digital payments giant Paytm is set to pivot into an AI-first organization, according to statements by founder and CEO Vijay Shekhar Sharma. This vision is part of a larger strategy to leverage artificial intelligence to drive innovation, efficiency, and personalized experiences across the company’s vast ecosystem of services.
Speaking at a recent tech summit, Sharma emphasized that Paytm's future hinges on deeply integrating AI into every facet of its business—from user interactions to backend operations. “The aim is not just to use AI as a feature but to rebuild Paytm’s architecture around it,” he said, describing the company’s transformation journey.
Strategic Realignment Post-Layoffs
The announcement follows reports of internal restructuring at Paytm, including recent layoffs across departments. However, Sharma noted that these workforce changes are part of a broader move to align resources with new technological priorities. While the company has not officially disclosed the number of impacted roles, sources suggest the realignment is designed to accelerate automation and improve organizational agility in the AI era.
"Rather than short-term cost-cutting, this transition reflects a forward-looking approach to building new AI-led capabilities," said an internal source familiar with the strategy.
Building AI-Native Infrastructure
According to Sharma, Paytm will focus on developing in-house AI tools and collaborating with external partners to embed intelligence into its payment services, loan distribution, wealth management, and commerce offerings. One such collaboration involves Perplexity AI, a US-based startup working on AI-powered search experiences. The partnership is expected to enhance Paytm's ability to deliver fast, context-rich answers across its platforms, including the Paytm app.
The company has already started deploying AI across user touchpoints. From customer support chatbots to credit scoring algorithms, Paytm has leveraged machine learning in specific functions—but the goal now is more foundational.
“We're looking at AI agents that not only assist but take action on behalf of the user,” Sharma said. He also hinted at the use of AI copilots in merchant solutions, designed to simplify financial services for small business owners.
AI for India: Scalable, Localized, Responsible
In a country like India, where user diversity spans across languages, financial literacy, and internet access, Paytm's AI strategy will need to address scale and inclusivity. Sharma acknowledged this, stating that the company is working on models that can adapt to regional contexts, ensuring that personalization is not just algorithmic but also culturally relevant.
He further emphasized the importance of responsible AI use, noting that ethical frameworks and privacy-centric designs are being baked into development. “This is not just about chasing the trend,” Sharma said. “This is about creating real value for our users with trust at the center.”
Positioning Amid Broader Industry Shifts
Paytm’s AI-first ambition places it in step with global tech giants like Google, Microsoft, and Meta, who are racing to embed AI deeply into their products. In India, competitors like PhonePe, CRED, and BharatPe have also ramped up their AI investments in recent months.
Analysts view Paytm’s shift as both a bold statement and a necessary response to changing market dynamics. With tightening regulatory frameworks and evolving customer expectations, AI could serve as a competitive differentiator—especially in fintech, where decision-making speed and user insight are paramount.
Investor Sentiment and Market Implications
Paytm’s stock has seen volatility in recent months amid concerns over compliance and competition. However, the company’s new AI-centric strategy may help restore investor confidence by signaling long-term growth intent and technological leadership.
“While execution will be key, Paytm’s vision to become AI-first could reinvigorate its product portfolio and operational margins,” said a fintech analyst.
The Road Ahead
Paytm’s move to an AI-first future won’t be instantaneous. Sharma admitted the transition will require a “complete rewiring” of how teams build and ship products. Yet, the founder remains optimistic.
“We have the data, the users, the infrastructure—and now, with AI, the ability to offer unparalleled experiences. It’s time we rethink what Paytm can do, not just as a payments app, but as a technology innovator,” Sharma concluded.