Bajaj Finance targets a 100% increase in efficiency through the adoption of Artificial Intelligence.

Bajaj Finance, a leading financial services company, is launching an AI initiative called FinAI to enhance its operations and customer engagement. The goal is to triple lead conversion rates, double back-office productivity, and boost front-line performance by 1.5 times. The company has already tested over 30 AI use cases and is planning to integrate AI with its cloud and digital infrastructure. One key application of AI will be conversational AI, which will allow customers to interact with the company through interactive links and specify their preferences, such as choosing between a smartphone or smart TV. The company aims to reduce its operating cost-to-net-interest-margin ratio by 100 basis points over the next four years. AI will complement existing systems, rather than replace them, and physical processes like KYC and AML compliance will remain essential due to regulatory requirements. The company’s loan product mix has remained consistent over the past decade, and the recent credit cost increases are a return to pre-Covid norms.