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Klarna says its AI assistant is doing the work of 700 people after putting the brakes on hiring

Feb 28, 2024 - businessinsider.com
Swedish fintech Klarna claims its AI assistant is performing the work equivalent to 700 full-time agents, engaging in 2.3 million conversations since its launch a month ago. The company, which uses OpenAI technology, says the chatbot is more accurate in errand resolution and matches human agents in customer satisfaction. It is estimated to drive a $40 million profit improvement by 2024. However, some users remain skeptical about its effectiveness.

Klarna CEO Sebastian Siemiatkowski is a strong advocate for AI and has stopped hiring new staff outside of the engineering department as the company leans more into AI. Despite not planning any layoffs, Siemiatkowski anticipates the company will shrink over time due to natural attrition, with AI taking over the roles of departing employees. This follows the company's controversial decision to lay off 700 employees in 2022.

Key takeaways:

  • Klarna's AI assistant is reportedly doing the work equivalent to 700 full-time agents, engaging in 2.3 million conversations since it went live a month ago.
  • The company claims the AI assistant is on par with human agents in terms of customer satisfaction and is more accurate in errand resolution.
  • Klarna CEO, Sebastian Siemiatkowski, has expressed his enthusiasm for AI, stating that the company is not hiring new staff beyond its engineering department as it leans into AI.
  • Despite the AI's success, not everyone is impressed. One user found the AI assistant underwhelming, stating it simply recites exact documents and quickly passes users onto human support.
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