The rapid expansion of digital payment systems has transformed India's financial ecosystem by enabling secure, convenient, and instant financial transactions. However, the increasing volume of digital transactions has also intensified the risks associated with cyber fraud, identity theft, financial crimes, and regulatory non-compliance. Artificial Intelligence (AI) has emerged as a strategic technology for strengthening fraud detection and supporting regulatory compliance through real-time transaction monitoring, predictive analytics, and intelligent risk assessment. Despite its growing adoption, limited empirical research has examined how IT professionals perceive and utilize AI-driven fraud detection systems within Indian digital payment and fintech organizations.

This study investigates the adoption, perceived effectiveness, and implementation challenges of AI-enabled fraud detection and regulatory compliance systems from the perspective of the Indian IT workforce. A mixed-method research design was adopted by collecting primary data from 150 IT professionals through structured questionnaires and supporting the findings with semi-structured interviews. Descriptive statistical techniques were employed to analyze quantitative responses, while qualitative insights were used to interpret workforce experiences.