- Klarna’s AI chatbot replaces 700 staff, driving $40M in projected profits.
- CEO bets big on automation amid hiring freeze and attrition.
- Layoffs last year sparked backlash, but Klarna denies link to AI pivot.
$40 million in AI profits
Swedish fintech Klarna claims its new AI assistant is doing the work of 700 full-time staff. In a recent blog post, Klarna said the OpenAI-powered chatbot has engaged in 2.3 million conversations and improved customer satisfaction since launching a month ago.
The company estimates the AI will drive $40 million in profit gains next year.
However some early users describe the chatbot experience as underwhelming, quickly passing them to human agents.
Betting big on AI
CEO Sebastian Siemiatkowski is betting big on AI, freezing hiring beyond engineering as Klarna leans into automation.
While not planning further layoffs, Siemiatkowski expects natural attrition to shrink staff over time as AI fills roles.
Klarna laid off 700 employees last year, sparking backlash. The company denies those cuts are linked to its AI pivot.
But Klarna is clearly staking its future on artificial intelligence to drive efficiency and cut costs.
