‘AI delivered more than expected’: Paytm CEO Vijay Shekhar Sharma says Google, Microsoft AI tools helped saving employee costs

Paytm, under the leadership of CEO Vijay Shekhar Sharma, is harnessing the power of artificial intelligence (AI) to streamline its operations and reduce staffing needs. The company is using AI tools from tech giants Microsoft and Google to accelerate product development and improve efficiency.

According to a report by Bloomberg, Sharma is pushing his technology, product, and engineering teams, which consist of 10,000 members, to utilise these AI tools. This move has significantly sped up product development, reducing the time from weeks to just a few days.

The use of AI has not only improved efficiency but also led to a reduction in staffing needs. Sharma expects that the company will need fewer employees as a result of automation. “We will be able to save the targeted 10 percent to 15 percent that we had planned in employee costs, all because AI has actually delivered more than what we expected it to,” he said.

This strategic use of AI is part of Paytm’s broader plan to turn around its fortunes and reach profitability in less than a year. The company has been generating free cash for the past two quarters, and Sharma expects this positive trend to continue. 

Sharma claims that Paytm is making big changes to its online wealth management services and plans to hire over 50,000 salespeople. The goal is to bring more merchants into its network and reach profitability faster than planned.

Paytm’s plans to expand

Sharma is revamping Paytm’s money management products to attract younger users who are open to online investing. He’s also planning to increase the salesforce by more than 60% to sign up more merchants in smaller Indian cities and towns.

AIThese efforts are part of a larger plan to turn around Paytm, which has seen a significant drop in value since its 2021 IPO. Despite challenges from competitors and regulatory hurdles, Sharma believes that the push for wealth and merchant services, along with cost savings from AI automation, could help Paytm become profitable in less than a year.

“We have learned and we will amplify our ability to serve India, its small merchants and businesses,” Sharma said. He expects to have about 50 million merchants on the Paytm platform within the year.

Paytm, which had about 38 million merchants as of September, launched its digital wealth management product, Paytm Money, in 2018. The company plans to enhance this service with artificial intelligence (AI) as more of India’s middle class turns to online investing. Sharma also sees potential in the insurance sector due to its low penetration in India.

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