We report on the generation of correlated photon pairs in AlGaAs-on-insulator (AlGaAs-OI) waveguides through nonlinear spontaneous four-wave-mixing (SFWM). Our measurements reveal an SFWM pair generation efficiency of ∼0.096 × 1012 pairs/(sW2) at a wavelength of 1550 nm. This is one of the highest efficiencies achieved to date for integrated SFWM sources. A maximal coincidence-to-accidental ratio of ∼122 is measured. A spectral characterization of the device’s pair emission at the quantum level demonstrates a broad generation bandwidth of 2.0 THz, which is important for frequency multiplexing applications. Our results indicate that AlGaAs-OI is an efficient material platform for integrated quantum photonics at telecom wavelengths.