Vijay Shekhar Sharma, the founder of Paytm, has said that the fintech company will transform into an AI-first company, a trend seen across tech companies globally as AI develops at a lightning pace.

Paytm is actively piloting AI-powered products and has begun partnering with major AI players, Sharma said at the Shiprocket’s Shivir: AI Commerce Edition on Friday, as per media reports.

The fintech company has earlier partnered with Perplexity, an AI search startup, through which Paytm integrated conversational AI search capabilities into its app as part of a broader strategy to embed AI deeply into customer experiences.

Sharma also said that companies will have to start using AI as an employee or even as a CEO.

He also said that India must settle for becoming the "use case capital" of AI rather than building big foundational models because of high entry costs and lack of global infrastructure.

There has been lot of chatter about tech companies in India endeavouring themselves to transform into an AI first company while global company companies such as Microsoft and Google have said that a sizable portion of the company's code is being generated by AI.

Last week, another fintech company MobiKwik said that the company aims to focus on leveraging AI as a growth catalyst this year.

Paytm's move to transform into an AI first company also comes amid fears of job losses.

The company recently saw a drop in headcount by around 3,500 employees during the March 2024 quarter primarily due to regulatory curbs on Paytm Payments Bank and not directly because of automation.

Still, the broader tech world tells a different story. Over 100,000 jobs have been lost globally in 2025, as major firms like Google, Meta, and Intel adjust their workforce structures to prioritize AI. Microsoft laid off 9,000, or 4% of its workforce last week.

These layoffs are not just cost-cutting measures but reflect a structural transformation in the industry. Many traditional roles are disappearing, replaced by specialized jobs in AI, data science, and automation.