PhonePe launches AI-powered search built using Microsoft Foundry

In a move that signals the next phase of evolution in India’s digital payments ecosystem, PhonePe on Saturday launched an AI-powered natural language search feature built using Microsoft Foundry, enabling users to navigate, pay and track transactions through simple voice or text commands.The new capability allows users to initiate and complete in-app tasks conversationally, replacing traditional menu-based navigation with intent-driven routing. According to the company, the feature is designed to enhance convenience while adding a deeper layer of personalisation to the overall user experience“This feature enables PhonePe users to initiate and complete in-app tasks via natural language text or voice commands, enhancing convenience and bringing personalisation to the platform's overall experience,” the company said in a statement.
With the update, commands such as “Pay Hemanth 20 rupees” automatically open the payment interface with the intended recipient pre-selected. Similarly, requests like “Recharge FASTag” or “Gold price” direct users to the relevant service or information page within the app. The tool interprets user intent—whether making a payment, completing a purchase or seeking support—rather than merely responding to keyword-based inputs.PhonePe said the feature leverages a hybrid architecture combining on-device and cloud inferencing. Importantly, it emphasised that no personal or transactional data leaves the PhonePe environment, underscoring its focus on privacy and security.Rahul Chari, Founder, Whole-time Director and CTO of PhonePe, described the launch as a structural shift in how payment platforms are designed and experienced.
“For years, payment apps have been built as utilitarian tools, optimised for transactions and not people. This launch is the first step towards changing that. Our vision is to make payments accessible to every Indian, and AI enables us to build an intelligent interface that anticipates what users need before they even go looking for it.“Through our collaboration with Microsoft, we aim to simplify payments further by understanding intent, not just inputs. And we believe intelligence at the edge is the future and the most thoughtful way to deliver real value without compromising on privacy or security,” he said.Puneet Chandok, President, Microsoft India and South Asia at Microsoft, said the partnership reflects the growing adoption of natural language interfaces across India’s digital ecosystem.“As more Indians embrace natural language to interact with digital services, PhonePe's new AI-powered experience is a strong step toward more intuitive and accessible digital payments. Microsoft Foundry provides the underlying capabilities that help innovators like PhonePe build secure, scalable and human-centred products for millions. We're committed to supporting India's digital ecosystem with trusted AI that empowers organisations to deliver simpler and more meaningful customer experiences,” he said.
The feature will be rolled out in phases across India and will be accessible through the app’s Global Search Bar, Help Center and History tab.Founded in 2016, PhonePe Limited is one of India’s largest digital payments and financial services platforms. As of September 30, 2025, the company reported over 65 crore registered users and a merchant acceptance network spanning more than 4.7 crore outlets, reflecting the scale at which AI-driven enhancements could reshape everyday digital transactions across the country.a