Indian Fintech Companies Move AI From Demos to Operations

Indian fintech companies have moved beyond mere demonstrations of artificial intelligence (AI) to its wider operational deployment. AI is now being utilized for customer identification (KYC), supporting credit decisions, detecting fraud, and enhancing customer service, according to Inc42.

Discussions at the Global Fintech Fest (GFF) in Mumbai indicated that AI applications have surpassed the proof-of-concept stage. Voice agents are handling customer interactions, AI is accelerating verification processes, and fraud detection systems are becoming more sophisticated. The next challenge lies in measuring the actual value these applications deliver and ensuring their use does not compromise trust, regulatory compliance, or accountability.

Kedar Kulkarni, CEO of HyperVerge, outlines the adoption of AI in three phases: digital onboarding (including KYC and identity verification), fraud prevention (combating forged documents and deepfakes), and AI-assisted decision-making. The latter phase remains early, with credit decisions still requiring human judgment.

Sivaram Kowta from Zeta India noted that AI is actively used in customer service, fraud management, and underwriting. Zeta India's AI agent handles approximately 80% of customer service calls for Sparrow, a US-based fintech. Ashutosh Prakash Singh of RevRag AI predicts AI's use will soon expand beyond traditional contact centers to encompass digital customer journeys and physical touchpoints at banks and financial service providers.

Regulatory compliance remains a key challenge. India's Digital Personal Data Protection (DPDP) framework requires AI systems to manage consent and the right to erasure. Furthermore, clear regulations are needed for data localization and AI's role in credit decisions, as accountability cannot be shifted to AI models. Currently, AI-assisted payment transactions represent a very small fraction of India's total UPI payment volume.