Swedish fintech company Klarna, known for its buy-now-pay-later services, is reversing its decision to replace human workers with artificial intelligence (AI).
After laying off 700 employees in 2022 and shifting customer service operations to AI, the company has acknowledged that AI-driven automation failed to meet expectations.
Now, Klarna is launching a large-scale recruitment drive to bring back human workers, particularly in customer-facing roles.
AI-Led Workforce Reduction at Klarna and Cost Savings
In 2022, Klarna partnered with OpenAI to automate several functions, including customer service, translation, art production, and data analysis.
By 2023, the company had paused hiring and relied heavily on AI, claiming that its AI systems were performing the work of 700 human employees.
This shift resulted in significant cost savings, including a $10 million reduction in marketing expenses.
CEO Sebastian Siemiatkowski initially championed the move, stating in December 2024 that “AI can already do all the jobs that we, as humans, do.”
However, as AI-driven customer interactions became more prevalent, Klarna began facing quality issues, leading to a decline in customer satisfaction.
AI’s Shortcomings and the Need for Human Workers
Despite the financial benefits, Klarna soon realized that AI lacked the human touch necessary for effective customer service.
Sebastian admitted that cost-cutting had been prioritized over service quality.
He stated, “Cost unfortunately seems to have been a too predominant evaluation factor when organizing this, what you end up having is lower quality.”
Sebastian emphasized the importance of human presence in customer interactions.
He added, “From a brand perspective, a company perspective, I just think it’s so critical that you are clear to your customer that there will always be a human if you want.”
This realization has prompted Klarna to reintroduce human employees, particularly in customer support roles, where empathy and judgment are crucial.
Klarna’s New Hiring Strategy
Klarna is now testing a remote hiring model, allowing employees to log in on-demand, similar to gig economy platforms like Uber.
The company aims to recruit workers from rural areas and student communities, offering flexible work arrangements.
This approach seeks to balance AI-driven automation with human expertise, ensuring better service quality.
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