Paytm's AI adoption leaves over 100 employees jobless

Over 100 employees across various verticals, including sales and engineering, have been left jobless after Paytm, the leading Indian fintech company, opted for Artificial Intelligence (AI) services with the perceived goal of cost-cutting through automation.

The move towards AI integration is aimed at cutting costs, improving operational efficacy, and eliminating redundant tasks in the company's pursuit of strengthening its core business in digital payments.

Paytm anticipates saving up to 15% in employee costs through the adoption of AI, asserting that the technology has surpassed their initial expectations.

Vijay Shekhar Sharma, Founder and CEO of Paytm, is steering the company's technology, product, and engineering teams towards utilizing Microsoft Corp. and Google AI tools, enabling faster product development cycles.

Despite the positive outlook on AI implementation, Paytm faced challenges in 2021 with the termination of 500-700 employees based on non-performance. The recent decision to shift focus from small-ticket loans to high-ticket personal and merchant loans has drawn criticism from brokerages, leading to a decline in revenue estimates for the company.

Paytm, having experienced a 70% drop in its stock value since its $2.5 billion Initial Public Offering (IPO), is now strategizing to recover. The company plans to hire more than 15,000 contract salespeople to expand its merchant network, aiming for profitability soon.

As Paytm grapples with the implications of its recent decisions, investors express concerns about the company's financial stability, prompting a closer scrutiny of its performance in the dynamic fintech landscape.