PhonePe Launches AI-Powered Natural Language Search Built on Microsoft Foundry

PhonePe has launched a new AI-powered natural language search feature in its app, developed using Microsoft Foundry — an enterprise AI platform.

This feature allows users to navigate the app, make payments and access services through simple voice or text commands, replacing traditional menu-based navigation and bringing more intuitive and personalised digital payment experiences to users across India.

Feature Details and Functionality

The new capability enables natural language interactions to perform in-app tasks by understanding user intent rather than rigid button presses. For example:

“Pay Hemanth 20 rupees” — automatically opens the payment interface with the correct contact selected.

“Recharge FASTag” or “Gold price” — directly navigates to the relevant section or information page.

The feature combines a hybrid approach of on-device and cloud AI processing, which helps maintain data privacy and app security by keeping sensitive information within the PhonePe environment.

It is being rolled out in phases across India to ensure accessibility and scalability for millions of users.

Significance for Digital Payments and Users

Enhanced Accessibility: Easier interaction with digital payments through natural language, particularly helpful for users who may find traditional menus complex.

User-Centric Design: Shifts payment apps from purely transaction-focused tools to intelligent, conversational platforms that anticipate user needs.

Support for Multiple In-App Tasks: The feature goes beyond basic payments to help users track transactions, get information and reach support services using simple commands.

What Is Microsoft Foundry?

Microsoft Foundry is an enterprise-grade AI platform (evolved from Azure AI Foundry) designed to help developers and companies build, deploy, and manage AI applications securely and at scale. It integrates AI models, tooling, governance and data access in one environment, suitable for business-critical systems.

Foundry supports natural language understanding (NLU) and intent interpretation, which makes it appropriate for conversational AI features like PhonePe’s search.

Broader Context of AI in Fintech

AI adoption in fintech is growing rapidly with features such as conversational interfaces, automated financial assistance, fraud detection, personalised insights and voice-based actions becoming mainstream.

Natural language AI not only simplifies user interactions but also bridges language barriers in diverse markets like India, where multilingual support and ease of use are crucial for inclusion.

PhonePe’s Role in India’s Digital Payments Ecosystem

Apart from AI innovations, PhonePe is one of the leading digital payments platforms in India, supporting transactions via the Unified Payments Interface (UPI), with a large network of users, merchants and integrations in the financial services ecosystem.

The platform has been expanding features over time — including in-app financial services, banking partnerships, loans and merchant solutions — making it central to India’s digital economy.