MUMBAI: Artificial intelligence is transforming access to finance in India, particularly in rural and underserved areas, according to Ajay Piramal, chairman of the Piramal Group.
“We are in the lending business and AI is no longer a periphery to our business. It is actually the core of our business,” he said in an interview.
AI now drives loan underwriting and collections across the conglomerate’s financial services arm, enabling faster decisions and hands-free processing for 15% of collections.
The technology allows lenders to assess creditworthiness using alternative data-like digital payments and utility records-for borrowers without formal credit histories.
This shift is expanding credit access for micro, small, and medium enterprises and low-income populations.
But Piramal warned that AI could deepen inequality between skilled and unskilled workers, especially as eastern India lags in income and digital access.
To counter this, the Piramal Foundation launched Sachiv-G, an AI chatbot helping village leaders navigate over 100 government welfare schemes.
The foundation also uses AI to speed up scholarship processing for girls-from 44 weeks to just one-improving education retention and economic outcomes.
Piramal remains bullish on India’s economy, citing strong foreign reserves, stable banks, and controlled inflation, despite global risks like Middle East tensions and oil price volatility.