PhonePe, the leading fintech firm, has reduced its customer support team by 60 per cent over the past five years, according to its latest annual report filed on October 21. The company’s workforce in this department has shrunk from approximately 1,100 agents to just over 400. This reduction aligns with PhonePe's strategic transition towards AI-driven solutions.
During the same period, PhonePe experienced a remarkable 40-fold surge in transactions, spanning from FY19 to FY24. "This efficiency was achieved by increasing automated customer service issue resolutions, powered by AI-driven chatbots, to over 90 per cent," the company stated in the report.
PhonePe also said its resilience in navigating external challenges such as the Zero Merchant Discount Rate (MDR) regulation and the disruptions caused by the Covid-19 pandemic. The company credits its profitability to a strong focus on process automation and improved unit economics.
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Despite significant cost cuts, PhonePe reported improvements in customer satisfaction. The company highlighted a consistent rise in its Net Promoter Score (NPS) over the past five years, attributing the gains to enhanced service efficiency.
The report also outlined the company's role in fostering employment. PhonePe claims to have generated over 22,000 jobs across India. The fintech firm currently employs more than 1,500 top engineers who are developing advanced solutions to support India’s rapidly expanding digital payments ecosystem.
In a broader context, Nick Bunker, an economist at the Indeed Hiring Lab, told the Associated Press, "AI will affect many jobs — perhaps indirectly impacting every job to some extent. But I don't believe it will lead to mass unemployment. History shows us that other major technological advancements haven't caused widespread job losses. While technology can eliminate certain roles, it also creates new ones."