Paytm revealed its plans to harness AI-driven automation in 2024, aiming to streamline processes and eliminate repetitive tasks. This strategy, according to a spokesperson, might lead to a modest reduction in the operations and marketing workforce. The implementation of AI has proven more efficient than anticipated, potentially saving the company around 10-15% in employee costs. The spokesperson highlighted the ongoing evaluation of non-performance cases throughout the year.
The statement holds significance amid reports of Paytm laying off over 1,000 employees from various departments, emphasizing the company’s efforts to enhance efficiency.
The spokesperson emphasized the potential increase in manpower by 15,000 within Paytm’s core payment business in the upcoming year. With a strong foothold in the payments platform and a profitable business model, the focus remains on innovation. Expansion into Insurance and Wealth aligns with their existing business focus, building on the success of their distribution-based model in loan distribution.
CEO Vijay Shekhar Sharma emphasized Paytm’s increased integration of AI in customer care operations and ongoing efforts to personalize user experiences. He mentioned updates in the Paytm app’s home screen and the separation of offerings between Paytm Payments Bank and other group entities.
Paytm’s recent financial reports highlighted early operating profitability and a push toward EBITDA-level profitability. Their second-quarter fiscal results demonstrated a 32% year-on-year increase in operational revenues, reaching ₹2519 crore. Additionally, EBITDA before ESOP cost saw improvement, reaching ₹153 crore, up from ₹84 crore in Q1FY24 (excluding UPI incentives).
