AI Redefining Compliance Verification for India’s Gig Economy

India’s gig and quick-commerce sectors have surged to nearly 12 million workers in FY 2024–25, up from 7.7 million in 2020–21. It is expected to double by 2030, according to industry estimates. With blue-collar gig hiring rising 92% in 2024, delivery and mobility platforms are onboarding workers faster than their compliance teams can process them.

The rapid hiring cycle has raised concerns about safety, fraud, and identity-based risks, pushing companies toward AI-led verification that can validate identities, detect anomalies, and monitor compliance in real time. However, adoption remains uneven, creating significant vulnerabilities in a workforce that underpins India’s hyperlocal economy.

Companies like Melento (formerly SignDesk), Ongrid and Unstop are showcasing how AI is changing compliance and verification workflows and why digital maturity remains a bigger challenge.

The Push to AI-Native Compliance

Melento, a compliance-focused platform that processes over 50 million documents annually across banks, NBFCs, and large corporations, has seen AI reshape its contract management engine.

The company’s founder and CEO, Krupesh Bhat, said AI now performs the first layer of contract reviews. “It helps identify the template and runs the first review based on the playbook that’s created. It does redlining, highlights risks in contracts, and even tracks milestones and deliverables,” he said.

Bhat added that AI can automate complex actions, such as alerting teams, processing payments, or generating legal notices. Yet the hesitation does not come from the fear of AI. “Clients don’t fear AI, they just want clarity on its purpose, boundaries and oversight,” he said.

The regulatory landscape contributes to that uncertainty. There is still no consistent rulebook for gig-worker compliance, and state-wise enforcement is fragmented. Instead, the sector is informally guided by emerging principles such as algorithmic accountability, fairness in worker classification, transparent decision-making and minimal data use.

Melento is already reorienting itself for this shift. “We are transforming into more of an AI-native product company,”Bhat said. “AI allows us to launch new products and new features quickly. On a net headcount basis, I may not be able to reduce the number of people, but I’ll be able to offer more services and solutions in the market.”

Adoption Bottleneck

While AI tools are becoming stronger, Bhat said adoption depends entirely on an organisation’s existing processes. “Many internal processes still rely on email and spreadsheets. They negotiate contracts manually and lack a contract repository. AI is two steps ahead of where many companies are in their automation journey,” he noted.

The gap is particularly evident in the gig economy, where many partners are small vendors or franchise operators with limited digital infrastructure. This mismatch between AI capability and operational readiness remains India’s most significant compliance risk.

Beyond compliance platforms, AI is now handling hiring at scale. At Unstop, which works extensively with campus and early-talent applicants, AI now powers nearly 80% of the screening workflow, from assessments to document verification and fraud detection.

Ankit Agarwal, Founder and CEO of Unstop, said hiring volumes have grown three to five times, making AI unavoidable. “It flags anomalies in resumes, identity mismatches, and other risks with over 92% accuracy, he said. “AI automates the first layer of verification, cutting manual review time by 70% and ensuring every candidate goes through a uniform, skills-first evaluation.”

To strengthen fairness, Unstop trains its models on anonymised, balanced datasets across demographics and income groups. “Bias prevention starts with data hygiene,” Agarwal said. The platform uses human-in-the-loop validation for every risk flag, conducts monthly audits and routes a case for manual review if AI confidence drops below 85%.

Selective Automation

At Ongrid, a background verification company, AI is applied more selectively, often as a complement to human oversight. Its chief technology officer, Ajay Rao, said AI helps accelerate parts of the process. “AI helps flag potential discrepancies and speeds up verification, but human review is still critical, especially when dealing with sensitive PII and legal compliance,” he said.

Rao added that generative AI models are increasingly useful for extracting structured data from documents, analysing risk patterns and identifying missing information.

Cost, Infrastructure Remains a Barrier

Meanwhile, Melento’s Bhat highlighted a persistent challenge. “The trust associated with AI is one of the main hurdles. Even though we don’t use customer data to train our models, some clients worry about data privacy,” he said.
Another challenge is the cost of AI systems. For many Indian companies, it’s easier to hire entry-level staff than pay for AI tools. “AI is expensive, usage-based and still requires complementary digital tools,” Bhat explained.

Advanced AI systems, especially LLM-driven workflows, require strong infrastructure, reliable data flows and dedicated compliance governance. For companies operating on thin margins, these overheads can outweigh the benefits, slowing adoption even when risks are high.

Melento’s has built its internal AI playbook around explainability, human oversight, and auditability. Every reviewer action or AI decision is logged, traceable, and reviewable, a requirement that many clients insist on before giving a go-ahead for AI deployment.

Growing Marketing and Widening Gaps

India’s identity-verification and background-check industry is expanding rapidly, supported by the rise of gig platforms, BFSI and shared-services firms.

The country’s identity verification market size reached $451.1 million in 2024. IMARC Group, a leading market research company, expects the market to reach $1.72 billion by 2033, with a growth rate (CAGR) of 16% from 2025-2033.

Industry analyses also indicate rising identity-related discrepancies in logistics and delivery-led sectors. These trends have intensified demand for AI-assisted verification, particularly in high-velocity environments where human teams struggle to keep pace with scale.

Despite the barriers, the advantages are driving adoption. “AI is transformative when combined with human expertise. It allows our teams to focus on higher-value tasks while AI handles routine data processing,” Rao said.

As India’s gig economy continues to expand, the pressure to build faster, safer and more transparent verification systems will only grow. AI may not replace compliance teams, but it is rapidly becoming their most critical tool, especially in a labour market where trust, speed and scale are inseparable.

The post AI Redefining Compliance Verification for India’s Gig Economy appeared first on Analytics India Magazine.

AI Redefining Compliance Verification for India’s Gig Economy

India’s gig and quick-commerce sectors have surged to nearly 12 million workers in FY 2024–25, up from 7.7 million in 2020–21. It is expected to double by 2030, according to industry estimates. With blue-collar gig hiring rising 92% in 2024, delivery and mobility platforms are onboarding workers faster than their compliance teams can process them.

The rapid hiring cycle has raised concerns about safety, fraud, and identity-based risks, pushing companies toward AI-led verification that can validate identities, detect anomalies, and monitor compliance in real time. However, adoption remains uneven, creating significant vulnerabilities in a workforce that underpins India’s hyperlocal economy.

Companies like Melento (formerly SignDesk), Ongrid and Unstop are showcasing how AI is changing compliance and verification workflows and why digital maturity remains a bigger challenge.

The Push to AI-Native Compliance

Melento, a compliance-focused platform that processes over 50 million documents annually across banks, NBFCs, and large corporations, has seen AI reshape its contract management engine.

The company’s founder and CEO, Krupesh Bhat, said AI now performs the first layer of contract reviews. “It helps identify the template and runs the first review based on the playbook that’s created. It does redlining, highlights risks in contracts, and even tracks milestones and deliverables,” he said.

Bhat added that AI can automate complex actions, such as alerting teams, processing payments, or generating legal notices. Yet the hesitation does not come from the fear of AI. “Clients don’t fear AI, they just want clarity on its purpose, boundaries and oversight,” he said.

The regulatory landscape contributes to that uncertainty. There is still no consistent rulebook for gig-worker compliance, and state-wise enforcement is fragmented. Instead, the sector is informally guided by emerging principles such as algorithmic accountability, fairness in worker classification, transparent decision-making and minimal data use.

Melento is already reorienting itself for this shift. “We are transforming into more of an AI-native product company,”Bhat said. “AI allows us to launch new products and new features quickly. On a net headcount basis, I may not be able to reduce the number of people, but I’ll be able to offer more services and solutions in the market.”

Adoption Bottleneck

While AI tools are becoming stronger, Bhat said adoption depends entirely on an organisation’s existing processes. “Many internal processes still rely on email and spreadsheets. They negotiate contracts manually and lack a contract repository. AI is two steps ahead of where many companies are in their automation journey,” he noted.

The gap is particularly evident in the gig economy, where many partners are small vendors or franchise operators with limited digital infrastructure. This mismatch between AI capability and operational readiness remains India’s most significant compliance risk.

Beyond compliance platforms, AI is now handling hiring at scale. At Unstop, which works extensively with campus and early-talent applicants, AI now powers nearly 80% of the screening workflow, from assessments to document verification and fraud detection.

Ankit Agarwal, Founder and CEO of Unstop, said hiring volumes have grown three to five times, making AI unavoidable. “It flags anomalies in resumes, identity mismatches, and other risks with over 92% accuracy, he said. “AI automates the first layer of verification, cutting manual review time by 70% and ensuring every candidate goes through a uniform, skills-first evaluation.”

To strengthen fairness, Unstop trains its models on anonymised, balanced datasets across demographics and income groups. “Bias prevention starts with data hygiene,” Agarwal said. The platform uses human-in-the-loop validation for every risk flag, conducts monthly audits and routes a case for manual review if AI confidence drops below 85%.

Selective Automation

At Ongrid, a background verification company, AI is applied more selectively, often as a complement to human oversight. Its chief technology officer, Ajay Rao, said AI helps accelerate parts of the process. “AI helps flag potential discrepancies and speeds up verification, but human review is still critical, especially when dealing with sensitive PII and legal compliance,” he said.

Rao added that generative AI models are increasingly useful for extracting structured data from documents, analysing risk patterns and identifying missing information.

Cost, Infrastructure Remains a Barrier

Meanwhile, Melento’s Bhat highlighted a persistent challenge. “The trust associated with AI is one of the main hurdles. Even though we don’t use customer data to train our models, some clients worry about data privacy,” he said.
Another challenge is the cost of AI systems. For many Indian companies, it’s easier to hire entry-level staff than pay for AI tools. “AI is expensive, usage-based and still requires complementary digital tools,” Bhat explained.

Advanced AI systems, especially LLM-driven workflows, require strong infrastructure, reliable data flows and dedicated compliance governance. For companies operating on thin margins, these overheads can outweigh the benefits, slowing adoption even when risks are high.

Melento’s has built its internal AI playbook around explainability, human oversight, and auditability. Every reviewer action or AI decision is logged, traceable, and reviewable, a requirement that many clients insist on before giving a go-ahead for AI deployment.

Growing Marketing and Widening Gaps

India’s identity-verification and background-check industry is expanding rapidly, supported by the rise of gig platforms, BFSI and shared-services firms.

The country’s identity verification market size reached $451.1 million in 2024. IMARC Group, a leading market research company, expects the market to reach $1.72 billion by 2033, with a growth rate (CAGR) of 16% from 2025-2033.

Industry analyses also indicate rising identity-related discrepancies in logistics and delivery-led sectors. These trends have intensified demand for AI-assisted verification, particularly in high-velocity environments where human teams struggle to keep pace with scale.

Despite the barriers, the advantages are driving adoption. “AI is transformative when combined with human expertise. It allows our teams to focus on higher-value tasks while AI handles routine data processing,” Rao said.

As India’s gig economy continues to expand, the pressure to build faster, safer and more transparent verification systems will only grow. AI may not replace compliance teams, but it is rapidly becoming their most critical tool, especially in a labour market where trust, speed and scale are inseparable.

The post AI Redefining Compliance Verification for India’s Gig Economy appeared first on Analytics India Magazine.

AI Redefining Compliance Verification for India’s Gig Economy

India’s gig and quick-commerce sectors have surged to nearly 12 million workers in FY 2024–25, up from 7.7 million in 2020–21. It is expected to double by 2030, according to industry estimates. With blue-collar gig hiring rising 92% in 2024, delivery and mobility platforms are onboarding workers faster than their compliance teams can process them.

The rapid hiring cycle has raised concerns about safety, fraud, and identity-based risks, pushing companies toward AI-led verification that can validate identities, detect anomalies, and monitor compliance in real time. However, adoption remains uneven, creating significant vulnerabilities in a workforce that underpins India’s hyperlocal economy.

Companies like Melento (formerly SignDesk), Ongrid and Unstop are showcasing how AI is changing compliance and verification workflows and why digital maturity remains a bigger challenge.

The Push to AI-Native Compliance

Melento, a compliance-focused platform that processes over 50 million documents annually across banks, NBFCs, and large corporations, has seen AI reshape its contract management engine.

The company’s founder and CEO, Krupesh Bhat, said AI now performs the first layer of contract reviews. “It helps identify the template and runs the first review based on the playbook that’s created. It does redlining, highlights risks in contracts, and even tracks milestones and deliverables,” he said.

Bhat added that AI can automate complex actions, such as alerting teams, processing payments, or generating legal notices. Yet the hesitation does not come from the fear of AI. “Clients don’t fear AI, they just want clarity on its purpose, boundaries and oversight,” he said.

The regulatory landscape contributes to that uncertainty. There is still no consistent rulebook for gig-worker compliance, and state-wise enforcement is fragmented. Instead, the sector is informally guided by emerging principles such as algorithmic accountability, fairness in worker classification, transparent decision-making and minimal data use.

Melento is already reorienting itself for this shift. “We are transforming into more of an AI-native product company,”Bhat said. “AI allows us to launch new products and new features quickly. On a net headcount basis, I may not be able to reduce the number of people, but I’ll be able to offer more services and solutions in the market.”

Adoption Bottleneck

While AI tools are becoming stronger, Bhat said adoption depends entirely on an organisation’s existing processes. “Many internal processes still rely on email and spreadsheets. They negotiate contracts manually and lack a contract repository. AI is two steps ahead of where many companies are in their automation journey,” he noted.

The gap is particularly evident in the gig economy, where many partners are small vendors or franchise operators with limited digital infrastructure. This mismatch between AI capability and operational readiness remains India’s most significant compliance risk.

Beyond compliance platforms, AI is now handling hiring at scale. At Unstop, which works extensively with campus and early-talent applicants, AI now powers nearly 80% of the screening workflow, from assessments to document verification and fraud detection.

Ankit Agarwal, Founder and CEO of Unstop, said hiring volumes have grown three to five times, making AI unavoidable. “It flags anomalies in resumes, identity mismatches, and other risks with over 92% accuracy, he said. “AI automates the first layer of verification, cutting manual review time by 70% and ensuring every candidate goes through a uniform, skills-first evaluation.”

To strengthen fairness, Unstop trains its models on anonymised, balanced datasets across demographics and income groups. “Bias prevention starts with data hygiene,” Agarwal said. The platform uses human-in-the-loop validation for every risk flag, conducts monthly audits and routes a case for manual review if AI confidence drops below 85%.

Selective Automation

At Ongrid, a background verification company, AI is applied more selectively, often as a complement to human oversight. Its chief technology officer, Ajay Rao, said AI helps accelerate parts of the process. “AI helps flag potential discrepancies and speeds up verification, but human review is still critical, especially when dealing with sensitive PII and legal compliance,” he said.

Rao added that generative AI models are increasingly useful for extracting structured data from documents, analysing risk patterns and identifying missing information.

Cost, Infrastructure Remains a Barrier

Meanwhile, Melento’s Bhat highlighted a persistent challenge. “The trust associated with AI is one of the main hurdles. Even though we don’t use customer data to train our models, some clients worry about data privacy,” he said.
Another challenge is the cost of AI systems. For many Indian companies, it’s easier to hire entry-level staff than pay for AI tools. “AI is expensive, usage-based and still requires complementary digital tools,” Bhat explained.

Advanced AI systems, especially LLM-driven workflows, require strong infrastructure, reliable data flows and dedicated compliance governance. For companies operating on thin margins, these overheads can outweigh the benefits, slowing adoption even when risks are high.

Melento’s has built its internal AI playbook around explainability, human oversight, and auditability. Every reviewer action or AI decision is logged, traceable, and reviewable, a requirement that many clients insist on before giving a go-ahead for AI deployment.

Growing Marketing and Widening Gaps

India’s identity-verification and background-check industry is expanding rapidly, supported by the rise of gig platforms, BFSI and shared-services firms.

The country’s identity verification market size reached $451.1 million in 2024. IMARC Group, a leading market research company, expects the market to reach $1.72 billion by 2033, with a growth rate (CAGR) of 16% from 2025-2033.

Industry analyses also indicate rising identity-related discrepancies in logistics and delivery-led sectors. These trends have intensified demand for AI-assisted verification, particularly in high-velocity environments where human teams struggle to keep pace with scale.

Despite the barriers, the advantages are driving adoption. “AI is transformative when combined with human expertise. It allows our teams to focus on higher-value tasks while AI handles routine data processing,” Rao said.

As India’s gig economy continues to expand, the pressure to build faster, safer and more transparent verification systems will only grow. AI may not replace compliance teams, but it is rapidly becoming their most critical tool, especially in a labour market where trust, speed and scale are inseparable.

The post AI Redefining Compliance Verification for India’s Gig Economy appeared first on Analytics India Magazine.

AI Redefining Compliance Verification for India’s Gig Economy

India’s gig and quick-commerce sectors have surged to nearly 12 million workers in FY 2024–25, up from 7.7 million in 2020–21. It is expected to double by 2030, according to industry estimates. With blue-collar gig hiring rising 92% in 2024, delivery and mobility platforms are onboarding workers faster than their compliance teams can process them.

The rapid hiring cycle has raised concerns about safety, fraud, and identity-based risks, pushing companies toward AI-led verification that can validate identities, detect anomalies, and monitor compliance in real time. However, adoption remains uneven, creating significant vulnerabilities in a workforce that underpins India’s hyperlocal economy.

Companies like Melento (formerly SignDesk), Ongrid and Unstop are showcasing how AI is changing compliance and verification workflows and why digital maturity remains a bigger challenge.

The Push to AI-Native Compliance

Melento, a compliance-focused platform that processes over 50 million documents annually across banks, NBFCs, and large corporations, has seen AI reshape its contract management engine.

The company’s founder and CEO, Krupesh Bhat, said AI now performs the first layer of contract reviews. “It helps identify the template and runs the first review based on the playbook that’s created. It does redlining, highlights risks in contracts, and even tracks milestones and deliverables,” he said.

Bhat added that AI can automate complex actions, such as alerting teams, processing payments, or generating legal notices. Yet the hesitation does not come from the fear of AI. “Clients don’t fear AI, they just want clarity on its purpose, boundaries and oversight,” he said.

The regulatory landscape contributes to that uncertainty. There is still no consistent rulebook for gig-worker compliance, and state-wise enforcement is fragmented. Instead, the sector is informally guided by emerging principles such as algorithmic accountability, fairness in worker classification, transparent decision-making and minimal data use.

Melento is already reorienting itself for this shift. “We are transforming into more of an AI-native product company,”Bhat said. “AI allows us to launch new products and new features quickly. On a net headcount basis, I may not be able to reduce the number of people, but I’ll be able to offer more services and solutions in the market.”

Adoption Bottleneck

While AI tools are becoming stronger, Bhat said adoption depends entirely on an organisation’s existing processes. “Many internal processes still rely on email and spreadsheets. They negotiate contracts manually and lack a contract repository. AI is two steps ahead of where many companies are in their automation journey,” he noted.

The gap is particularly evident in the gig economy, where many partners are small vendors or franchise operators with limited digital infrastructure. This mismatch between AI capability and operational readiness remains India’s most significant compliance risk.

Beyond compliance platforms, AI is now handling hiring at scale. At Unstop, which works extensively with campus and early-talent applicants, AI now powers nearly 80% of the screening workflow, from assessments to document verification and fraud detection.

Ankit Agarwal, Founder and CEO of Unstop, said hiring volumes have grown three to five times, making AI unavoidable. “It flags anomalies in resumes, identity mismatches, and other risks with over 92% accuracy, he said. “AI automates the first layer of verification, cutting manual review time by 70% and ensuring every candidate goes through a uniform, skills-first evaluation.”

To strengthen fairness, Unstop trains its models on anonymised, balanced datasets across demographics and income groups. “Bias prevention starts with data hygiene,” Agarwal said. The platform uses human-in-the-loop validation for every risk flag, conducts monthly audits and routes a case for manual review if AI confidence drops below 85%.

Selective Automation

At Ongrid, a background verification company, AI is applied more selectively, often as a complement to human oversight. Its chief technology officer, Ajay Rao, said AI helps accelerate parts of the process. “AI helps flag potential discrepancies and speeds up verification, but human review is still critical, especially when dealing with sensitive PII and legal compliance,” he said.

Rao added that generative AI models are increasingly useful for extracting structured data from documents, analysing risk patterns and identifying missing information.

Cost, Infrastructure Remains a Barrier

Meanwhile, Melento’s Bhat highlighted a persistent challenge. “The trust associated with AI is one of the main hurdles. Even though we don’t use customer data to train our models, some clients worry about data privacy,” he said.
Another challenge is the cost of AI systems. For many Indian companies, it’s easier to hire entry-level staff than pay for AI tools. “AI is expensive, usage-based and still requires complementary digital tools,” Bhat explained.

Advanced AI systems, especially LLM-driven workflows, require strong infrastructure, reliable data flows and dedicated compliance governance. For companies operating on thin margins, these overheads can outweigh the benefits, slowing adoption even when risks are high.

Melento’s has built its internal AI playbook around explainability, human oversight, and auditability. Every reviewer action or AI decision is logged, traceable, and reviewable, a requirement that many clients insist on before giving a go-ahead for AI deployment.

Growing Marketing and Widening Gaps

India’s identity-verification and background-check industry is expanding rapidly, supported by the rise of gig platforms, BFSI and shared-services firms.

The country’s identity verification market size reached $451.1 million in 2024. IMARC Group, a leading market research company, expects the market to reach $1.72 billion by 2033, with a growth rate (CAGR) of 16% from 2025-2033.

Industry analyses also indicate rising identity-related discrepancies in logistics and delivery-led sectors. These trends have intensified demand for AI-assisted verification, particularly in high-velocity environments where human teams struggle to keep pace with scale.

Despite the barriers, the advantages are driving adoption. “AI is transformative when combined with human expertise. It allows our teams to focus on higher-value tasks while AI handles routine data processing,” Rao said.

As India’s gig economy continues to expand, the pressure to build faster, safer and more transparent verification systems will only grow. AI may not replace compliance teams, but it is rapidly becoming their most critical tool, especially in a labour market where trust, speed and scale are inseparable.

The post AI Redefining Compliance Verification for India’s Gig Economy appeared first on Analytics India Magazine.

AI Redefining Compliance Verification for India’s Gig Economy

India’s gig and quick-commerce sectors have surged to nearly 12 million workers in FY 2024–25, up from 7.7 million in 2020–21. It is expected to double by 2030, according to industry estimates. With blue-collar gig hiring rising 92% in 2024, delivery and mobility platforms are onboarding workers faster than their compliance teams can process them.

The rapid hiring cycle has raised concerns about safety, fraud, and identity-based risks, pushing companies toward AI-led verification that can validate identities, detect anomalies, and monitor compliance in real time. However, adoption remains uneven, creating significant vulnerabilities in a workforce that underpins India’s hyperlocal economy.

Companies like Melento (formerly SignDesk), Ongrid and Unstop are showcasing how AI is changing compliance and verification workflows and why digital maturity remains a bigger challenge.

The Push to AI-Native Compliance

Melento, a compliance-focused platform that processes over 50 million documents annually across banks, NBFCs, and large corporations, has seen AI reshape its contract management engine.

The company’s founder and CEO, Krupesh Bhat, said AI now performs the first layer of contract reviews. “It helps identify the template and runs the first review based on the playbook that’s created. It does redlining, highlights risks in contracts, and even tracks milestones and deliverables,” he said.

Bhat added that AI can automate complex actions, such as alerting teams, processing payments, or generating legal notices. Yet the hesitation does not come from the fear of AI. “Clients don’t fear AI, they just want clarity on its purpose, boundaries and oversight,” he said.

The regulatory landscape contributes to that uncertainty. There is still no consistent rulebook for gig-worker compliance, and state-wise enforcement is fragmented. Instead, the sector is informally guided by emerging principles such as algorithmic accountability, fairness in worker classification, transparent decision-making and minimal data use.

Melento is already reorienting itself for this shift. “We are transforming into more of an AI-native product company,”Bhat said. “AI allows us to launch new products and new features quickly. On a net headcount basis, I may not be able to reduce the number of people, but I’ll be able to offer more services and solutions in the market.”

Adoption Bottleneck

While AI tools are becoming stronger, Bhat said adoption depends entirely on an organisation’s existing processes. “Many internal processes still rely on email and spreadsheets. They negotiate contracts manually and lack a contract repository. AI is two steps ahead of where many companies are in their automation journey,” he noted.

The gap is particularly evident in the gig economy, where many partners are small vendors or franchise operators with limited digital infrastructure. This mismatch between AI capability and operational readiness remains India’s most significant compliance risk.

Beyond compliance platforms, AI is now handling hiring at scale. At Unstop, which works extensively with campus and early-talent applicants, AI now powers nearly 80% of the screening workflow, from assessments to document verification and fraud detection.

Ankit Agarwal, Founder and CEO of Unstop, said hiring volumes have grown three to five times, making AI unavoidable. “It flags anomalies in resumes, identity mismatches, and other risks with over 92% accuracy, he said. “AI automates the first layer of verification, cutting manual review time by 70% and ensuring every candidate goes through a uniform, skills-first evaluation.”

To strengthen fairness, Unstop trains its models on anonymised, balanced datasets across demographics and income groups. “Bias prevention starts with data hygiene,” Agarwal said. The platform uses human-in-the-loop validation for every risk flag, conducts monthly audits and routes a case for manual review if AI confidence drops below 85%.

Selective Automation

At Ongrid, a background verification company, AI is applied more selectively, often as a complement to human oversight. Its chief technology officer, Ajay Rao, said AI helps accelerate parts of the process. “AI helps flag potential discrepancies and speeds up verification, but human review is still critical, especially when dealing with sensitive PII and legal compliance,” he said.

Rao added that generative AI models are increasingly useful for extracting structured data from documents, analysing risk patterns and identifying missing information.

Cost, Infrastructure Remains a Barrier

Meanwhile, Melento’s Bhat highlighted a persistent challenge. “The trust associated with AI is one of the main hurdles. Even though we don’t use customer data to train our models, some clients worry about data privacy,” he said.
Another challenge is the cost of AI systems. For many Indian companies, it’s easier to hire entry-level staff than pay for AI tools. “AI is expensive, usage-based and still requires complementary digital tools,” Bhat explained.

Advanced AI systems, especially LLM-driven workflows, require strong infrastructure, reliable data flows and dedicated compliance governance. For companies operating on thin margins, these overheads can outweigh the benefits, slowing adoption even when risks are high.

Melento’s has built its internal AI playbook around explainability, human oversight, and auditability. Every reviewer action or AI decision is logged, traceable, and reviewable, a requirement that many clients insist on before giving a go-ahead for AI deployment.

Growing Marketing and Widening Gaps

India’s identity-verification and background-check industry is expanding rapidly, supported by the rise of gig platforms, BFSI and shared-services firms.

The country’s identity verification market size reached $451.1 million in 2024. IMARC Group, a leading market research company, expects the market to reach $1.72 billion by 2033, with a growth rate (CAGR) of 16% from 2025-2033.

Industry analyses also indicate rising identity-related discrepancies in logistics and delivery-led sectors. These trends have intensified demand for AI-assisted verification, particularly in high-velocity environments where human teams struggle to keep pace with scale.

Despite the barriers, the advantages are driving adoption. “AI is transformative when combined with human expertise. It allows our teams to focus on higher-value tasks while AI handles routine data processing,” Rao said.

As India’s gig economy continues to expand, the pressure to build faster, safer and more transparent verification systems will only grow. AI may not replace compliance teams, but it is rapidly becoming their most critical tool, especially in a labour market where trust, speed and scale are inseparable.

The post AI Redefining Compliance Verification for India’s Gig Economy appeared first on Analytics India Magazine.

Indian Developers Fear They Aren’t Coding Enough Anymore

The Future of AI in India is Not That Bleak!The Future of AI in India is Not That Bleak!

While Indian companies have been forcing developers to use Cursor, GitHub Copilot, and other coding tools, some developers are realising they are not learning anything anymore, or making their skills even worse.

A front-end developer at an AI startup in Bengaluru, seeking anonymity, told AIM that he uses Cursor to write most of the code and tests out POCs using Lovable. He said that though this allows the company to ship faster and try out more designs, there is very little learning curve left for him apart from mastering these tools.

When he raised the concern about getting time to learn more, his manager told him, “Whatever coding you had to learn you learnt in college. Now is the time to build and ship.”

He added that this is especially worse for junior developers out of universities who are handed AI tools directly. This also leads to a lot of employees leaving the company early, either because they couldn’t learn much, or were simply let go.

The industry spent years telling developers not to obsess over lines of code, and now it is replacing one vanity metric with another.

A similar Reddit post on r/developersIndia by user account u/EdgeFamous377 captures this phenomenon better: “I think I’m writing less code… and companies seem weirdly okay with it. Should we be worried?”
The developer also added that they met someone from Anthropic’s sales team recently, who said companies now have dashboards that track prompt quality and how much AI they are using. This way, companies can now track each employee’s AI usage and assess if they are using it enough.

This kind of metric might make developers uneasy as they worry about being replaced by someone who is adept with these tools. Sharp coding skills are simply not going to be enough.

What’s the Worry?

Ultimately, developers are writing less code. Not because they got lazy, but because AI now sits in the middle of every workflow, and companies seem more than fine with it, more so, even encourage it. Someone on Reddit said they barely write anything from scratch now. They prompt, inspect, tweak, ship, and repeat.

Adam Wolff, the creator of Claude Code at Anthropic, predicted in a post on X that “maybe as soon as the first half of next year: software engineering is done. Soon, we won’t bother to check generated code, for the same reasons we don’t check compiler output.” He added that it is a little scary that programming won’t be a big part of the job anymore.

“But coding was always the easy part. The hard part is requirements, goals, feedback—figuring out what to build and whether it’s working,” Wolff said, which sounds eerily similar to what the manager of the Bengaluru startup told the developer.

And the developers who learnt coding before AI tools are on the safer spot. “I’m so glad that I learnt to code before AI. Because it’s like a drug. It’s always there,” Dhravya Shah, the creator of Supermemory, told AIM. Supermemory serves as a universal memory layer that enables developers and users to add memory to their own large language models.

Shah said that his friends who are learning to code now aren’t able to do it properly because AI coding tools exist. If you don’t learn to code without AI, you will eventually end up writing bad code, he said.

On the other hand, Adithya S Kolavi, founder of CognitiveLabs, believes that not being able to learn coding because of AI is simply wrong. “I started learning more when I started using AI to code,” he told AIM.

“Let’s say I am exploring a new language framework even though I use AI for coding. I read every single line, go through the documentation and understand what exactly is happening. So I feel you [developers] can learn more with AI,” he explained.

“We had a few interns who were trying to write all the code from scratch, which was actually holding others back who were using AI to code,” he added, reinforcing how important it is to learn to use AI tools.

Similarly, Adarsh Shirawalmath, founder of Tensoic AI and an SGLang developer, told AIM that junior developers often use AI coding tools without understanding what the output code is. “But sometimes the way I’ve seen some engineers use AI, especially working on large projects like SGlang, blows my mind,” he added. Tensoic AI is an open source research lab advancing the state of AI.

“The speed with which experienced developers can ship has gone up exponentially,” Shirawalmath said. This begs the question of how much actual coding is being done now, or even promoted within firms, since output is the only thing that matters.

No One is Shocked

Many senior developers on community forums also admit they use AI all the time. They just do not trust it blindly. One person said if you only toss prompts until something sticks, you are not developing, you are doing prompt engineering. If the model starts to spew nonsense, you should be able to take control and write it yourself.

This is what Wolff meant as well when he said that software engineering is going to change. But these discussions of Indian developers also captured a deeper anxiety. Juniors who never built strong fundamentals may struggle. Tooling is getting so powerful that it is easy to mistake autocomplete for engineering.

Though there should be a choice for developers to use AI tools or not, those lines are blurring. Developers who expected they would learn programming skills at their first job are now simply learning to use the AI tools, or in other words, learning to prompt.

Developers are not writing less code because they are getting worse. They are writing less because the nature of coding itself is shifting. But, nobody knows yet what that means for careers, learning, hiring, or evaluation. The work gets faster, but the fear gets louder. AI gives you wings, but also raises the bar.

The post Indian Developers Fear They Aren’t Coding Enough Anymore appeared first on Analytics India Magazine.

Decoding India’s New Labour Codes

Indian IT’s Goal to Hire 1 Lakh FreshersIndian IT’s Goal to Hire 1 Lakh Freshers

India’s four new labour codes, introduced between 2019 and 2020 and consolidating 29 earlier laws into a single framework governing wages, social security, working conditions, and industrial relations, were implemented nationwide this month.

For the IT and GCC ecosystem, the new codes have a direct impact on compensation structures, contractor oversight, fixed-term employment, and state-wise compliance obligations.

Earlier, the Provident Fund (PF), the Employees’ State Insurance (ESI) and the Minimum Wages Act used different definitions, allowing employers to distribute pay across allowances to limit statutory contributions.

A significant part of this shift is the introduction of a single, statutory definition of “wages,” replacing the fragmented interpretations under older laws.

This is intended to ensure that employees receive higher statutory benefits, calculated as a certain multiple of their wages.

This includes stronger PF contributions, improved gratuity payouts, clearer minimum-wage protection, timely wage payments, and more predictable severance and retrenchment compensation — by preventing salary structures that dilute the wage base used for these calculations.

Under the new codes, “wages” now include basic pay, dearness allowance (DA), and retaining allowance (RA), and these components must, together, account for at least 50% of total remuneration.
If excluded allowances, such as Housing and Rental Allowances (HRA), bonuses, special allowances or reimbursements, push the non-wage portion above 50%, the excess must be added back and treated as wages.

Legal experts, however, caution against assuming that the codes mandate employers to restructure salaries so that basic pay automatically equals 50% of remuneration.

A note from Khaitan & Co. points out that this interpretation is inaccurate.

Companies are not legally required to redesign salary structures. However, when calculating statutory payments such as retrenchment compensation, overtime or notice pay, the codes require that “wages” used for these calculations be treated as at least 50% of total remuneration — even if the actual basic pay is lower.

However, if companies choose to restructure salaries so that wages account for 50% of total remuneration, the higher PF contributions that follow may prompt them to reduce allowances that are not tied to basic, particularly performance-linked variable pay.

This shift would increase social-security deductions and leave employees with a smaller take-home salary.
Neeti Sharma, CEO of TeamLease Digital, a staffing company, told AIM that in the short run, the cost to the company will increase, and they may look at newer ways to protect their margins.

“At the same time, they will not be able to reduce compensations for existing employees, as the risk of their attrition will be high.”

AIM also reached out to Kanishka Maggon, a lawyer and a partner at Trilegal. “When it comes to social security…the EPF [Employee Provident Fund] act has not been repealed,” he stated.

This means the public is still awaiting clarity on whether PF will be calculated under the new “wage” definition prescribed in the labour codes, which would increase an employee’s social security benefits.

However, several companies and founders expressed a positive outlook towards the new labour code changes, in statements to AIM.

Ankit Agarwal, founder of Unstop, a talent management and hiring company, said, “As a founder, I see the implementation of the four labour codes as a much-needed update to how India manages work and workplaces.”
He stated that for years, businesses have dealt with fragmented and heavy compliance loads, but these reforms bring in a more straightforward process, clear expectations, and a more predictable environment.
Besides the basic pay alignment, the labour code also focuses on several structural changes that affect how IT and GCC employers manage their workforce.

Sharma pointed out that “vendor and contract workforce models will face tighter vigilance as principal employers become more accountable for social security and working conditions.”
The code on social security expands coverage for contract and platform (gig) workers, making principal employers directly accountable for ensuring PF, ESI and gratuity compliance across vendor-led teams.
Fixed-term employees now become eligible for gratuity after one year of continuous service, replacing the earlier five-year requirement and increasing long-term benefit obligations for high-attrition roles.
In addition, the code on wages introduces a statutory floor wage that no state can go below.

It extends minimum-wage and timely-payment provisions universally to 100% of India’s employees — removing earlier coverage gaps that left specific categories of employees outside formal protection.

With regards to the transition that companies now have to make — in terms of reworking contracts, updating payroll terms, training teams and tightening the compliance, Agarwal said that founders should see it as ‘investments, and not burdens.’
“If we get this right, we’ll end up with a workforce that feels more secure and a business ecosystem that’s far more transparent and future-ready,” he added.

The State vs. Central Confusion

Maggon pointed towards how state governments will need to notify their rules before the framework can operate without ambiguity.

“That’s the confusion that employers are grappling with,” said Maggon, adding that the anticipation is that states are going to move fast with the rules.

“Labour is a concurrent subject,” he stated, explaining how many operational details, such as working hours, record formats, and local inspections, still rely on individual state notifications.

He stated an example of how this plays out with working-hour requirements. Under the Occupational Safety, Health and Working Conditions (OSH) Code, 2020, the daily work limit is eight hours, but most state Shops and Establishments Acts still allow a nine-hour workday before overtime is triggered.
In a statement to AIM, Sonal Arora, country manager at GI Group Holding, highlighted the practical challenge. “Rules on floor wages, working hours and welfare provisions will continue to vary, which means organisations operating across multiple regions must stay alert to these differences.”

A report from the law firm Obhan and Associates stated that, “As of late 2025, most states had published draft rules for one or more Codes. However, not all states have finalised or notified their rules. Some states, such as West Bengal, have even lagged in releasing drafts.”

“For instance, Karnataka, Maharashtra, and Kerala have notified their respective rules under the Labour Codes, whereas Delhi has notified its rules under the Wage Code and SS Code and is yet to release rules under the IR Code and OSH Code,” stated another report from the law firm DLA Piper.

Arora added that these Codes, while they bring clarity, may struggle with uniformity, and that companies will need flexible systems and real-time oversight to remain compliant across all locations.

“The most effective approach is to maintain a state-wise compliance tracker and link it with geotagged employee data so that salaries and statutory obligations update automatically.”

Having said that, a more controversial aspect of the new implementation concerns the ease of layoffs. Earlier, companies with 100 employees needed prior government approval for layoffs or shutting operations, but that threshold has now been stretched to 300.

This has also led to various protests across regions in the country.

However, the code also states that workers with at least one year of continuous service continue to be entitled to 15 days’ average wages for every completed year of service as retrenchment compensation.

In addition, the Code now requires employers to contribute an amount equal to 15 days’ wages into a newly created re-skilling fund for each retrenched employee.

The post Decoding India’s New Labour Codes appeared first on Analytics India Magazine.

AI Redefining Compliance Verification for India’s Gig Economy

India’s gig and quick-commerce sectors have surged to nearly 12 million workers in FY 2024–25, up from 7.7 million in 2020–21. It is expected to double by 2030, according to industry estimates. With blue-collar gig hiring rising 92% in 2024, delivery and mobility platforms are onboarding workers faster than their compliance teams can process them.

The rapid hiring cycle has raised concerns about safety, fraud, and identity-based risks, pushing companies toward AI-led verification that can validate identities, detect anomalies, and monitor compliance in real time. However, adoption remains uneven, creating significant vulnerabilities in a workforce that underpins India’s hyperlocal economy.

Companies like Melento (formerly SignDesk), Ongrid and Unstop are showcasing how AI is changing compliance and verification workflows and why digital maturity remains a bigger challenge.

The Push to AI-Native Compliance

Melento, a compliance-focused platform that processes over 50 million documents annually across banks, NBFCs, and large corporations, has seen AI reshape its contract management engine.

The company’s founder and CEO, Krupesh Bhat, said AI now performs the first layer of contract reviews. “It helps identify the template and runs the first review based on the playbook that’s created. It does redlining, highlights risks in contracts, and even tracks milestones and deliverables,” he said.

Bhat added that AI can automate complex actions, such as alerting teams, processing payments, or generating legal notices. Yet the hesitation does not come from the fear of AI. “Clients don’t fear AI, they just want clarity on its purpose, boundaries and oversight,” he said.

The regulatory landscape contributes to that uncertainty. There is still no consistent rulebook for gig-worker compliance, and state-wise enforcement is fragmented. Instead, the sector is informally guided by emerging principles such as algorithmic accountability, fairness in worker classification, transparent decision-making and minimal data use.

Melento is already reorienting itself for this shift. “We are transforming into more of an AI-native product company,”Bhat said. “AI allows us to launch new products and new features quickly. On a net headcount basis, I may not be able to reduce the number of people, but I’ll be able to offer more services and solutions in the market.”

Adoption Bottleneck

While AI tools are becoming stronger, Bhat said adoption depends entirely on an organisation’s existing processes. “Many internal processes still rely on email and spreadsheets. They negotiate contracts manually and lack a contract repository. AI is two steps ahead of where many companies are in their automation journey,” he noted.

The gap is particularly evident in the gig economy, where many partners are small vendors or franchise operators with limited digital infrastructure. This mismatch between AI capability and operational readiness remains India’s most significant compliance risk.

Beyond compliance platforms, AI is now handling hiring at scale. At Unstop, which works extensively with campus and early-talent applicants, AI now powers nearly 80% of the screening workflow, from assessments to document verification and fraud detection.

Ankit Agarwal, Founder and CEO of Unstop, said hiring volumes have grown three to five times, making AI unavoidable. “It flags anomalies in resumes, identity mismatches, and other risks with over 92% accuracy, he said. “AI automates the first layer of verification, cutting manual review time by 70% and ensuring every candidate goes through a uniform, skills-first evaluation.”

To strengthen fairness, Unstop trains its models on anonymised, balanced datasets across demographics and income groups. “Bias prevention starts with data hygiene,” Agarwal said. The platform uses human-in-the-loop validation for every risk flag, conducts monthly audits and routes a case for manual review if AI confidence drops below 85%.

Selective Automation

At Ongrid, a background verification company, AI is applied more selectively, often as a complement to human oversight. Its chief technology officer, Ajay Rao, said AI helps accelerate parts of the process. “AI helps flag potential discrepancies and speeds up verification, but human review is still critical, especially when dealing with sensitive PII and legal compliance,” he said.

Rao added that generative AI models are increasingly useful for extracting structured data from documents, analysing risk patterns and identifying missing information.

Cost, Infrastructure Remains a Barrier

Meanwhile, Melento’s Bhat highlighted a persistent challenge. “The trust associated with AI is one of the main hurdles. Even though we don’t use customer data to train our models, some clients worry about data privacy,” he said.
Another challenge is the cost of AI systems. For many Indian companies, it’s easier to hire entry-level staff than pay for AI tools. “AI is expensive, usage-based and still requires complementary digital tools,” Bhat explained.

Advanced AI systems, especially LLM-driven workflows, require strong infrastructure, reliable data flows and dedicated compliance governance. For companies operating on thin margins, these overheads can outweigh the benefits, slowing adoption even when risks are high.

Melento’s has built its internal AI playbook around explainability, human oversight, and auditability. Every reviewer action or AI decision is logged, traceable, and reviewable, a requirement that many clients insist on before giving a go-ahead for AI deployment.

Growing Marketing and Widening Gaps

India’s identity-verification and background-check industry is expanding rapidly, supported by the rise of gig platforms, BFSI and shared-services firms.

The country’s identity verification market size reached $451.1 million in 2024. IMARC Group, a leading market research company, expects the market to reach $1.72 billion by 2033, with a growth rate (CAGR) of 16% from 2025-2033.

Industry analyses also indicate rising identity-related discrepancies in logistics and delivery-led sectors. These trends have intensified demand for AI-assisted verification, particularly in high-velocity environments where human teams struggle to keep pace with scale.

Despite the barriers, the advantages are driving adoption. “AI is transformative when combined with human expertise. It allows our teams to focus on higher-value tasks while AI handles routine data processing,” Rao said.

As India’s gig economy continues to expand, the pressure to build faster, safer and more transparent verification systems will only grow. AI may not replace compliance teams, but it is rapidly becoming their most critical tool, especially in a labour market where trust, speed and scale are inseparable.

The post AI Redefining Compliance Verification for India’s Gig Economy appeared first on Analytics India Magazine.

AI Redefining Compliance Verification for India’s Gig Economy

India’s gig and quick-commerce sectors have surged to nearly 12 million workers in FY 2024–25, up from 7.7 million in 2020–21. It is expected to double by 2030, according to industry estimates. With blue-collar gig hiring rising 92% in 2024, delivery and mobility platforms are onboarding workers faster than their compliance teams can process them.

The rapid hiring cycle has raised concerns about safety, fraud, and identity-based risks, pushing companies toward AI-led verification that can validate identities, detect anomalies, and monitor compliance in real time. However, adoption remains uneven, creating significant vulnerabilities in a workforce that underpins India’s hyperlocal economy.

Companies like Melento (formerly SignDesk), Ongrid and Unstop are showcasing how AI is changing compliance and verification workflows and why digital maturity remains a bigger challenge.

The Push to AI-Native Compliance

Melento, a compliance-focused platform that processes over 50 million documents annually across banks, NBFCs, and large corporations, has seen AI reshape its contract management engine.

The company’s founder and CEO, Krupesh Bhat, said AI now performs the first layer of contract reviews. “It helps identify the template and runs the first review based on the playbook that’s created. It does redlining, highlights risks in contracts, and even tracks milestones and deliverables,” he said.

Bhat added that AI can automate complex actions, such as alerting teams, processing payments, or generating legal notices. Yet the hesitation does not come from the fear of AI. “Clients don’t fear AI, they just want clarity on its purpose, boundaries and oversight,” he said.

The regulatory landscape contributes to that uncertainty. There is still no consistent rulebook for gig-worker compliance, and state-wise enforcement is fragmented. Instead, the sector is informally guided by emerging principles such as algorithmic accountability, fairness in worker classification, transparent decision-making and minimal data use.

Melento is already reorienting itself for this shift. “We are transforming into more of an AI-native product company,”Bhat said. “AI allows us to launch new products and new features quickly. On a net headcount basis, I may not be able to reduce the number of people, but I’ll be able to offer more services and solutions in the market.”

Adoption Bottleneck

While AI tools are becoming stronger, Bhat said adoption depends entirely on an organisation’s existing processes. “Many internal processes still rely on email and spreadsheets. They negotiate contracts manually and lack a contract repository. AI is two steps ahead of where many companies are in their automation journey,” he noted.

The gap is particularly evident in the gig economy, where many partners are small vendors or franchise operators with limited digital infrastructure. This mismatch between AI capability and operational readiness remains India’s most significant compliance risk.

Beyond compliance platforms, AI is now handling hiring at scale. At Unstop, which works extensively with campus and early-talent applicants, AI now powers nearly 80% of the screening workflow, from assessments to document verification and fraud detection.

Ankit Agarwal, Founder and CEO of Unstop, said hiring volumes have grown three to five times, making AI unavoidable. “It flags anomalies in resumes, identity mismatches, and other risks with over 92% accuracy, he said. “AI automates the first layer of verification, cutting manual review time by 70% and ensuring every candidate goes through a uniform, skills-first evaluation.”

To strengthen fairness, Unstop trains its models on anonymised, balanced datasets across demographics and income groups. “Bias prevention starts with data hygiene,” Agarwal said. The platform uses human-in-the-loop validation for every risk flag, conducts monthly audits and routes a case for manual review if AI confidence drops below 85%.

Selective Automation

At Ongrid, a background verification company, AI is applied more selectively, often as a complement to human oversight. Its chief technology officer, Ajay Rao, said AI helps accelerate parts of the process. “AI helps flag potential discrepancies and speeds up verification, but human review is still critical, especially when dealing with sensitive PII and legal compliance,” he said.

Rao added that generative AI models are increasingly useful for extracting structured data from documents, analysing risk patterns and identifying missing information.

Cost, Infrastructure Remains a Barrier

Meanwhile, Melento’s Bhat highlighted a persistent challenge. “The trust associated with AI is one of the main hurdles. Even though we don’t use customer data to train our models, some clients worry about data privacy,” he said.
Another challenge is the cost of AI systems. For many Indian companies, it’s easier to hire entry-level staff than pay for AI tools. “AI is expensive, usage-based and still requires complementary digital tools,” Bhat explained.

Advanced AI systems, especially LLM-driven workflows, require strong infrastructure, reliable data flows and dedicated compliance governance. For companies operating on thin margins, these overheads can outweigh the benefits, slowing adoption even when risks are high.

Melento’s has built its internal AI playbook around explainability, human oversight, and auditability. Every reviewer action or AI decision is logged, traceable, and reviewable, a requirement that many clients insist on before giving a go-ahead for AI deployment.

Growing Marketing and Widening Gaps

India’s identity-verification and background-check industry is expanding rapidly, supported by the rise of gig platforms, BFSI and shared-services firms.

The country’s identity verification market size reached $451.1 million in 2024. IMARC Group, a leading market research company, expects the market to reach $1.72 billion by 2033, with a growth rate (CAGR) of 16% from 2025-2033.

Industry analyses also indicate rising identity-related discrepancies in logistics and delivery-led sectors. These trends have intensified demand for AI-assisted verification, particularly in high-velocity environments where human teams struggle to keep pace with scale.

Despite the barriers, the advantages are driving adoption. “AI is transformative when combined with human expertise. It allows our teams to focus on higher-value tasks while AI handles routine data processing,” Rao said.

As India’s gig economy continues to expand, the pressure to build faster, safer and more transparent verification systems will only grow. AI may not replace compliance teams, but it is rapidly becoming their most critical tool, especially in a labour market where trust, speed and scale are inseparable.

The post AI Redefining Compliance Verification for India’s Gig Economy appeared first on Analytics India Magazine.

AI Redefining Compliance Verification for India’s Gig Economy

India’s gig and quick-commerce sectors have surged to nearly 12 million workers in FY 2024–25, up from 7.7 million in 2020–21. It is expected to double by 2030, according to industry estimates. With blue-collar gig hiring rising 92% in 2024, delivery and mobility platforms are onboarding workers faster than their compliance teams can process them.

The rapid hiring cycle has raised concerns about safety, fraud, and identity-based risks, pushing companies toward AI-led verification that can validate identities, detect anomalies, and monitor compliance in real time. However, adoption remains uneven, creating significant vulnerabilities in a workforce that underpins India’s hyperlocal economy.

Companies like Melento (formerly SignDesk), Ongrid and Unstop are showcasing how AI is changing compliance and verification workflows and why digital maturity remains a bigger challenge.

The Push to AI-Native Compliance

Melento, a compliance-focused platform that processes over 50 million documents annually across banks, NBFCs, and large corporations, has seen AI reshape its contract management engine.

The company’s founder and CEO, Krupesh Bhat, said AI now performs the first layer of contract reviews. “It helps identify the template and runs the first review based on the playbook that’s created. It does redlining, highlights risks in contracts, and even tracks milestones and deliverables,” he said.

Bhat added that AI can automate complex actions, such as alerting teams, processing payments, or generating legal notices. Yet the hesitation does not come from the fear of AI. “Clients don’t fear AI, they just want clarity on its purpose, boundaries and oversight,” he said.

The regulatory landscape contributes to that uncertainty. There is still no consistent rulebook for gig-worker compliance, and state-wise enforcement is fragmented. Instead, the sector is informally guided by emerging principles such as algorithmic accountability, fairness in worker classification, transparent decision-making and minimal data use.

Melento is already reorienting itself for this shift. “We are transforming into more of an AI-native product company,”Bhat said. “AI allows us to launch new products and new features quickly. On a net headcount basis, I may not be able to reduce the number of people, but I’ll be able to offer more services and solutions in the market.”

Adoption Bottleneck

While AI tools are becoming stronger, Bhat said adoption depends entirely on an organisation’s existing processes. “Many internal processes still rely on email and spreadsheets. They negotiate contracts manually and lack a contract repository. AI is two steps ahead of where many companies are in their automation journey,” he noted.

The gap is particularly evident in the gig economy, where many partners are small vendors or franchise operators with limited digital infrastructure. This mismatch between AI capability and operational readiness remains India’s most significant compliance risk.

Beyond compliance platforms, AI is now handling hiring at scale. At Unstop, which works extensively with campus and early-talent applicants, AI now powers nearly 80% of the screening workflow, from assessments to document verification and fraud detection.

Ankit Agarwal, Founder and CEO of Unstop, said hiring volumes have grown three to five times, making AI unavoidable. “It flags anomalies in resumes, identity mismatches, and other risks with over 92% accuracy, he said. “AI automates the first layer of verification, cutting manual review time by 70% and ensuring every candidate goes through a uniform, skills-first evaluation.”

To strengthen fairness, Unstop trains its models on anonymised, balanced datasets across demographics and income groups. “Bias prevention starts with data hygiene,” Agarwal said. The platform uses human-in-the-loop validation for every risk flag, conducts monthly audits and routes a case for manual review if AI confidence drops below 85%.

Selective Automation

At Ongrid, a background verification company, AI is applied more selectively, often as a complement to human oversight. Its chief technology officer, Ajay Rao, said AI helps accelerate parts of the process. “AI helps flag potential discrepancies and speeds up verification, but human review is still critical, especially when dealing with sensitive PII and legal compliance,” he said.

Rao added that generative AI models are increasingly useful for extracting structured data from documents, analysing risk patterns and identifying missing information.

Cost, Infrastructure Remains a Barrier

Meanwhile, Melento’s Bhat highlighted a persistent challenge. “The trust associated with AI is one of the main hurdles. Even though we don’t use customer data to train our models, some clients worry about data privacy,” he said.
Another challenge is the cost of AI systems. For many Indian companies, it’s easier to hire entry-level staff than pay for AI tools. “AI is expensive, usage-based and still requires complementary digital tools,” Bhat explained.

Advanced AI systems, especially LLM-driven workflows, require strong infrastructure, reliable data flows and dedicated compliance governance. For companies operating on thin margins, these overheads can outweigh the benefits, slowing adoption even when risks are high.

Melento’s has built its internal AI playbook around explainability, human oversight, and auditability. Every reviewer action or AI decision is logged, traceable, and reviewable, a requirement that many clients insist on before giving a go-ahead for AI deployment.

Growing Marketing and Widening Gaps

India’s identity-verification and background-check industry is expanding rapidly, supported by the rise of gig platforms, BFSI and shared-services firms.

The country’s identity verification market size reached $451.1 million in 2024. IMARC Group, a leading market research company, expects the market to reach $1.72 billion by 2033, with a growth rate (CAGR) of 16% from 2025-2033.

Industry analyses also indicate rising identity-related discrepancies in logistics and delivery-led sectors. These trends have intensified demand for AI-assisted verification, particularly in high-velocity environments where human teams struggle to keep pace with scale.

Despite the barriers, the advantages are driving adoption. “AI is transformative when combined with human expertise. It allows our teams to focus on higher-value tasks while AI handles routine data processing,” Rao said.

As India’s gig economy continues to expand, the pressure to build faster, safer and more transparent verification systems will only grow. AI may not replace compliance teams, but it is rapidly becoming their most critical tool, especially in a labour market where trust, speed and scale are inseparable.

The post AI Redefining Compliance Verification for India’s Gig Economy appeared first on Analytics India Magazine.