PhonePe Launches AI-Powered Natural Language Search with Microsoft Foundry

PhonePe has launched an AI-powered natural language search feature built on Microsoft Foundry. The new tool allows users to navigate, pay, recharge, and track transactions using simple voice or text commands. Announced on February 23 2026 the feature marks a shift from menu-based navigation to intent-driven, conversational interactions, aiming to make digital payments more intuitive, secure, and personalized.

How PhonePe AI-Powered Natural Language Search Works

The PhonePe AI-powered natural language search replaces traditional button-based navigation with intent-based routing. Users can simply type or speak commands, and the app understands their intent.

Examples include,

• “Pay Hemanth 20 rupees” – Opens payment interface with contact pre-selected
• “Recharge FASTag” – Directs to recharge section
• “Gold price” – Displays live gold rates

This conversational approach enhances convenience and reduces the need for manual browsing within the app.

Built on Microsoft Foundry: Secure and Scalable AI

The feature is powered by Microsoft Foundry, providing the AI backbone for natural language understanding.

Key technical aspects include,

• Hybrid AI model (on-device + cloud inferencing)
• No personal or transactional data leaves the PhonePe ecosystem
• Privacy-first architecture
• Secure and scalable infrastructure

This ensures high performance without compromising data security.

From Transactional App to Intelligent Platform

PhonePe Founder and CTO Rahul Chari described the launch as a major transformation.

He emphasized that,

• Payment apps should be user-centric, not just transactional
• AI enables intelligent interfaces that anticipate user needs
• Edge intelligence ensures privacy and efficiency

The launch aligns with India’s broader push toward AI-driven digital transformation.

Rollout and User Access

The PhonePe AI-powered natural language search will be rolled out in phases across India.

Users can access it via,

• Global Search Bar
• Help Center
• History Tab

With over 65 crore registered users and more than 4.7 crore merchant outlets as of September 30, 2025, PhonePe’s AI feature could impact millions of daily transactions.

Question

Q. PhonePe’s AI-powered natural language search is built on which platform?

A) Google Vertex AI
B) Microsoft Foundry
C) AWS SageMaker
D) IBM Watson