As AI technology continues to rise, many people are worried about its impact on jobs. While there are valid concerns, some companies are leveraging AI to enhance efficiency and customer satisfaction. PhonePe, a major fintech player in India, has recently demonstrated how AI can transform business operations.
In its latest annual report, the company revealed that it has reduced its customer support staff by 60% over the past five years. The workforce shrank from around 1,100 agents to just over 400, even as the company experienced a remarkable 40-fold increase in transactions between FY18-19 and FY23-24.
Also read: Swiggy UPI launched in India: What is it and how it works
This reduction in staff is largely due to PhonePe’s heavy reliance on AI-driven automation. The report highlighted that over 90% of customer service issues are now resolved by chatbots, showcasing the effectiveness of technology in handling customer queries. Despite these cuts, PhonePe has not only maintained customer satisfaction but has also seen improvements, as reflected in its consistently rising Net Promoter Score (NPS) during the same period.
The annual report noted, “Despite significant external challenges over the past five years, including the Zero MDR law and the Covid-19 pandemic, our relentless focus on process automation and unit economics has driven a clear path to profitability.”
Also read: UPI users on the rise in India, but so are online payment frauds: Warns RBI
In FY24, PhonePe reported a significant 73% increase in revenue, soaring to Rs 5,064 crore, up from Rs 2,914 crore in the previous fiscal year. Additionally, PhonePe has turned its Adjusted Profit After Tax (PAT) positive, recording Rs 197 crore, a remarkable turnaround from the Rs 738 crore loss reported last year.
PhonePe’s journey shows how businesses can harness AI to streamline operations and improve customer satisfaction. However, this also raises concerns about job security, as automation may lead to reduced employment opportunities in certain sectors.