AI

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

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The fintech said its OpenAI-powered assistant had engaged in 2.3 million conversations since it went live a month ago. Jonas Walzberg/picture alliance via Getty Images
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Klarna says its AI assistant is doing "the equivalent work of 700 full-time agents."

In a blog post posted on the company's website, the fintech said its OpenAI-powered assistant had engaged in 2.3 million conversations since it went live a month ago.

The company claimed the chatbot was more accurate in "errand resolution" and on par with human agents when it came to customer satisfaction. The post also said the tech was estimated to drive a $40 million profit improvement for the company in 2024.

One user, Gergely Orosz, a software engineer and author of The Pragmatic Engineer newsletter, said he was skeptical of the news after trying out Klarna's AI assistant.

"It's … underwhelming. It recites exact docs and passes me on to human support fast," he said in a post on X.

Klarna CEO Sebastian Siemiatkowski has long been enthusiastic about AI.

He told The Telegraph late last year that the Swedish fintech was no longer hiring new staff beyond its engineering department as the company leans into AI.

"There will be a shrinking of the company," Siemiatkowski said in December. "We're not currently hiring at all, apart from engineers."

While the Klarna chief said he did not plan to lay off more workers, he said natural attrition meant the company would shrink over time, and AI would pick up the slack from lost staffers.

Klarna previously laid off 700 employees in 2022.

The company faced backlash for the 10% workforce reduction at the time. Siemiatkowski used a pre-recorded video message to break the news to the 700 staff members affected.

A representative for Klarna declined to comment on the criticism of the AI assistant and denied the 2022 layoffs were connected to AI development within the company.

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Beatrice Nolan was a tech reporter on the business news team in the UK. She joined Insider in January 2022 as a fellow on Business Insider's careers desk. Beatrice covered tech and the future of work, with a focus on artificial intelligence. Some of her stories and early experiments with ChatGPT are widely cited. Beatrice has also discussed her work covering AI trends on panels and radio shows, including NPR.She was based in Business Insider's London office and graduated from the University of  York with a bachelor's degree in English.Featured Articles:Artists say AI image generators are copying their style to make thousands of new images — and it's completely out of their control.ChatGPT was a black swan eventFinland is the world's happiest country, but Finns say we're confusing happiness for something elseThe world is splitting between those who use ChatGPT to get better, smarter, richer — and everyone elseThis man used AI to write and illustrate a children's book in one weekend. He wasn't prepared for the backlash.ChatGPT has only been around for 2 months and is causing untold chaosTwo professors who say they caught students cheating on essays with ChatGPT explain why AI plagiarism can be hard to proveChatGPT wrote college application essays. Admissions professionals said they passed for essays written by students but wouldn't have a chance at any top colleges.College professors are considering creative ways to stop students from using AI to cheatChatGPT wrote my cover letters. Here's how recruiters responded.