Indian fintechs chase AI gains despite ROI shortfall: PwC

Despite aggressive investments in artificial intelligence, 84 per cent of fintech firms surveyed have not yet achieved measurable financial results from their AI initiatives, according to findings from a PwC analysis. The data underscores a growing disconnect between the technology's perceived potential and its near-term commercial impact across the fintech sector.

The findings highlight a critical challenge facing Indian and South Asian fintech players as they navigate an increasingly competitive landscape. While these companies recognise AI's strategic importance for customer personalisation, fraud detection and operational efficiency, the translation of technological deployment into bottom-line gains remains elusive for the vast majority.

The sector is simultaneously preparing for headwinds on multiple fronts. Industry participants expect capital deployment to tighten in the coming months, potentially creating a challenging environment for smaller players with unproven revenue models. Consolidation appears inevitable as larger players and well-funded startups seek to acquire capabilities and customer bases, while weaker competitors struggle to justify continued independent operations.

The timing poses particular urgency for fintech leadership to demonstrate tangible returns from technology investments and establish clear pathways to profitability. Companies that can bridge the AI investment-to-returns gap stand to gain competitive advantage, while those unable to do so may face mounting pressure to seek partnerships or exit opportunities.