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In today’s newsletter:

• Perplexity brings AI search to Paytm
• Centre steps in over Infosys layoffs
• Karnataka’s big push for esports

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Ever wished your wallet could give you financial advice? Well, Paytm just took a giant leap into the future!

Payments major Paytm has teamed up with California-based Perplexity AI to bring an AI-powered search to its app, aiming to help users make smarter financial decisions.

• The options will allow users to ask questions, explore topics in local languages, and get AI-driven insights

New financial tools are in the works to assess purchases, evaluate investments, and analyse expenses before making payments.

“The partnership is about adding AI-first features that can become profit drivers in a year or two,” Paytm founder Vijay Shekhar Sharma said.

Also read: AI-based products can become Paytm's profit drivers in a year or two: Vijay Shekhar Sharma

Paytm has bigger AI plans beyond search.

• It’s building AI-powered tools to help users track spending, manage investments, and optimise portfolios

• Perplexity’s AI shopping feature may also connect with Paytm’s payment system

Some features are in beta, with a 2.0 version coming soon.

Perplexity CEO Aravind Srinivas sees AI as key to India’s global competitiveness but says more work is needed.

• India needs its own AI models to match OpenAI and China’s DeepSeek, he said

Perplexity is exploring localised pricing and payment options beyond its $20/month plan, with potential Paytm UPI integration in the future.

Dig deeper

 A state probe wasn’t enough—now, the Centre wants answers.

The Union Labour Ministry has sent a second letter to Karnataka’s Labour Commissioner, urging intervention in Infosys’ Mysuru trainee layoffs after complaints reached the Prime Minister’s Office.

• The ministry has also asked for a detailed report on the actions taken so far

Affected trainees have accused Infosys of unfair dismissals, a lack of clarity regarding assessment policies, and the withholding of relieving letters.

Infosys said that performance-based exits have always been part of their programme. 

• They also assert that trainees were informed about negative marking and that only those failing three consecutive tests were let go

However, some claim they were unaware of these policies and suspect foul play on stipends under the government’s apprenticeship scheme.

This isn’t just about Infosys—it’s about how IT firms handle trainee contracts and performance evaluations, Pune-based IT employee union NITES said in a press conference.

• With the Centre stepping in, the case could set a precedent for employment practices in India’s tech sector

With tensions rising, NITES has warned of large-scale protests if authorities don’t take action.

Dig deeper

Karnataka’s IT-BT Minister Priyank Kharge wants to ride the wave of India's esports boom.

Kharge is making a big push to make the southern state a prominent esports hub. 

• At Bengaluru GAFX 2025, he outlined his vision for a national esports festival, aiming to create the biggest esports event in India and potentially Asia

The event is currently hosting the grand finale of the Esports National Championship involving the Counter-Strike 2 title.

The esports push is part of the state government's efforts to become a key leader in the fast-growing animation, visual effects, gaming, comics, and extended reality (AVGC-XR) sector.

• Kharge wants Karnataka to be a major contributor to India's ambition of becoming a global leader in the sector

The state also expects its latest version of the AVGC-XR policy for the year 2024-2029 to generate 50,000 jobs over the next three to four years.

To achieve this goal, the government is developing dedicated digital media cities and tech parks along with setting up AVGC Centers of Excellence for training and R&D purposes. 

• It is also providing incubation support, production grants, and incentives to encourage local content creation

Read more

• An Accenture study shows that even as APAC companies, including those in India, widely implement AI, only 1% are ready to manage compliance, privacy, and data risks.
  
  
• AI in healthcare is projected to contribute $25-30 billion to India's GDP by 2025, enhancing accessibility, diagnostics, and treatment outcomes, according to a report by Deloitte.

Planning a getaway this summer? 

Thinking of the romantic streets of Europe or the beaches of Southeast Asia? Get ready to dig a little deeper into your pockets. 

• Prices for international vacation packages have jumped 15-20% this year, fueled by a mix of rupee depreciation and rising hotel tariffs

More on that here

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