Fintech Giant Klarna Faces Setback as AI Fails to Replace Human Customer Service
Renowned fintech company Klarna has admitted that its reliance on artificial intelligence (AI) in customer service has fallen short of delivering the quality that human agents provide. Since 2021, Klarna has been automating various departments, including customer service, aiming to cut costs and reduce staff numbers.
In 2023, the company saved $10 million by outsourcing translation, art production, and data analysis tasks to generative AI, reducing its workforce from 5,527 employees at the end of 2022 to 3,422 by December 2023. However, Klarna’s CEO, Sebastian Siemiatkowski, recently acknowledged that AI agents failed to meet the standards set by human employees.
“We implemented AI in customer service, but the results showed that human interaction is indispensable. As a brand, we must ensure our customers can speak to a real person whenever they want,” the CEO stated.
Following this experience, Klarna has decided to strike a balance between AI use and human involvement, ensuring that AI will not completely replace the human element.
This is not unique to Klarna. Other tech companies like CrowdStrike and Duolingo have also reduced their workforce after adopting AI, lowering business costs but raising serious questions about the future of employment.
Despite increasing AI adoption, Klarna’s recognition of the importance of human contact underscores that technology can never fully replace human empathy and relationships.
