In response to an impending summer heatwave, lenders in India are increasingly utilizing artificial intelligence (AI) to streamline collections and customer acquisition. The India Meteorological Department has forecasted above-normal heatwave days from April to June, which poses challenges for cash-based lending sectors, including microfinance and gold loans. These sectors traditionally rely on field operations for collections, which can be severely impacted by extreme temperatures. Jairam Sridharan, Managing Director of Piramal Finance, noted that while collections remained stable in April, the company is prioritizing employee welfare to prevent heat-related health issues. AI tools are being deployed to identify borrowers who are likely to pay digitally, those needing physical follow-ups, and the best times for engagement. This strategic shift aims to reduce manual intervention and allow field teams to focus on more complex cases. Last year's heatwave resulted in a 50-200 basis point drop in collection efficiency, and lenders anticipate a similar decline this year, although AI is expected to mitigate some of the adverse effects.