Pine Labs Invests ₹24 Cr in AI R&D in FY26, Cuts Testing Time by Over 95%

Fintech company Pine Labs allocated approximately ₹24 crore (about $2.9 million USD) towards artificial intelligence (AI) and research and development initiatives in fiscal year 2026, aiming to modernize its digital payment offerings.

The investment included ₹20 crore dedicated to enhancing AI capabilities, upgrading technology infrastructure, and automating customer-facing processes. An additional ₹4 crore was invested in enterprise-wide technologies such as model context protocol (MCP) and retrieval-augmented generation (RAG).

The company has deployed AI agents for customer support, automated scheme enablement, and launched an AI Virtual Employee platform. These efforts have reportedly reduced software testing cycle times by over 95%, increased developer productivity by 25%, and cut initial incident analysis time by 80%. AI agents have also been responsible for developing approximately 89% of new code changes over the past two quarters.

Beyond internal applications, Pine Labs introduced consumer and merchant-facing AI tools like the P3P payment protocol and the SignalIQ loan analysis engine. AI is also integrated into cybersecurity operations for threat detection and automated vulnerability remediation.

For the full fiscal year 2026, Pine Labs reported a consolidated net profit of ₹112.5 crore on operating revenue of ₹2,710.6 crore. In the first quarter of fiscal year 2027, net profit increased more than fourfold year-on-year to ₹19.6 crore.