PhonePe integrates ChatGPT: Indian users get AI-powered assistance in-app — here's how it works

Digital payments giant PhonePe announced on Thursday, 13 November, a strategic collaboration with OpenAI to integrate the popular generative Artificial Intelligence (AI) model ChatGPT into its ecosystem.

With this move, AI-powered assistance will become widely accessible to millions of Indian users across the payments platform's ecosystem, including the PhonePe app, PhonePe for Business, and the Indus Appstore.

This announcement comes just over a month after Walmart-owned PhonePe filed draft papers for an Initial Public Offering (IPO) through the confidential pre-filing route, Mint reported earlier.

How will PhonePe’s ChatGPT integration work?

The primary goal of the partnership is to expand the reach of generative AI within India's digital ecosystem. By embedding ChatGPT's capabilities directly into the PhonePe platform, users across the country will be able to receive AI-powered assistance for a variety of common, daily tasks.

This feature will cover activities such as travel planning, shopping and general informative discovery, thus enhancing the user experience on the platform by offering “smarter and relevant” information, the company said in an official press release.

Accelerating AI adoption in India

The collaboration is one of the first large-scale efforts to embed ChatGPT into a major Indian consumer platform, marking a significant milestone that could accelerate AI adoption in the country. It further opens opportunities for new use cases as AI tools continue to gain traction among digital users.

Speaking on the launch, Rahul Chari, Founder, Whole-time Director and Chief Technology Officer, PhonePe said, “At PhonePe, we have spent years building the foundational layers for digital services at population scale. This strategic alliance demonstrates that collaborations between innovative companies in this space can help expand the reach of cutting-edge technology to the broader population. We are excited to partner with OpenAI to begin this journey.”

Oliver Jay, Head of International at OpenAI, added to Chari's comments, saying, “Our collaboration with PhonePe is a significant milestone in our mission to make AI more accessible to people throughout India. India is a global hub for innovation, and PhonePe's deep understanding of the country's fabric and its user base make them the ideal partner. This partnership will demonstrate the immense value of consumer AI across India, helping millions of users enhance their daily lives.”

PhonePe IPO details

According to a Mint report, PhonePe is expected to raise ₹11,000- ₹12,000 crore largely through an offer for sale.

The offering will consist of a mix of offer for sale and fresh issue, with the latter forming only a minor portion of the overall size.

The company had been preparing for a public listing for several months prior to filing the draft papers. In February this year, the digital payments platform appointed JP Morgan, Citi India, Morgan Stanley, and Kotak Mahindra Capital as merchant bankers to manage the IPO. In April, it transitioned from a private firm to a public company.

However, the firm also said, “The filing of the PDRHP shall not necessarily mean that the company will undertake the IPO,” Mint reported.