AI impact: PhonePe has fired 60% of customer support agents
PhonePe, one of India's leading fintech firms, has slashed its customer support team by 60% in the last five years. The company's annual report shows the number of agents has fallen from roughly 1,100 to a little over 400. The move comes amid a massive surge in transactions, and a transition toward AI-driven customer service solutions.
AI chatbots handle over 90% of customer service issues
PhonePe's annual report also notes that the company has been able to address over 90% of customer service queries through AI-driven chatbots. The move toward automation has not only simplified operations but also cut down costs by a huge margin. Even with external factors such as the "Zero MDR" law and the COVID-19 pandemic, PhonePe's focus on process automation and unit economics has driven it toward profitability.
Customer satisfaction remains high despite staff cuts
Despite the massive cut in customer support staff, PhonePe has continued to deliver high levels of customer satisfaction. The company's Net Promoter Score (NPS), a key customer satisfaction indicator, has improved year-on-year for the last five years. This indicates that the shift to AI-driven solutions hasn't affected the quality of service offered to customers.
Financial performance and job creation
PhonePe posted a revenue of ₹5,064 crore for the fiscal year ending March 2024, a 74% jump from ₹2,914 crore last year. The company also revealed that it has achieved profitability, barring Employee Stock Ownership Plan (ESOP) costs, with an adjusted net profit of ₹197 crore for FY24. This is a major turnaround from the ₹738 crore loss posted in FY23.
