PhonePe is expanding the use of artificial intelligence across its consumer products, merchant services and internal operations as the digital payments company looks to automate workflows and make interactions on its platform more intuitive.
The fintech company has been deploying AI across multiple areas rather than positioning it as a standalone feature. Its initiatives span natural-language search for consumers, payment gateway integration for merchants, AI-generated payment pages, customer support, fraud and risk operations, and employee productivity.
For consumers, PhonePe introduced an AI-powered natural-language search feature earlier this year using Microsoft Foundry. The feature allows users to navigate the app and initiate tasks through text or voice commands. A user can, for instance, enter an instruction to pay a contact, recharge a FASTag or find information without manually navigating through multiple sections of the app.
PhonePe said the system uses a combination of on-device and cloud inference, while keeping personal and transactional data within the PhonePe environment. The feature is being rolled out in phases across the app's Global Search Bar, Help Center and History section.
The company has also introduced AI tools aimed at reducing technical barriers for merchants. Its AI-powered integration layer for PhonePe Payment Gateway uses coding assistants alongside the company's proprietary Integration Intelligence technology. PhonePe says the system can reduce payment gateway integration from a process that previously took days or weeks to one that can be completed within minutes.
Another merchant-focused product, SmartPages, uses AI to create payment pages from natural-language prompts. Merchants can describe their product or service, including in regional languages, and the system generates copy, selects relevant information fields and structures a mobile-optimised payment page.
Internally, PhonePe is deploying generative AI tools for functions including meetings, documentation and communication. Its regulatory filings also identify automation opportunities across areas such as advertising supervision, merchant classification and customer support bots as the company looks to improve productivity.
AI is also being used within PhonePe's risk operations. The company has previously detailed the use of machine learning for risk scoring, graph-based systems for detecting suspicious activity and generative AI to reduce the time required to investigate fraud-related incidents.
The expansion comes as PhonePe operates at significant scale. As of July 2026, the company reported 718 million lifetime registered users, more than 50 million lifetime registered merchants and 11 billion customer transactions during the month.
PhonePe's approach reflects a broader shift among large digital platforms towards embedding AI into existing consumer and enterprise workflows, with the technology increasingly being used for navigation, automation, customer service and operational decision-making.
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