Klarna’s AI chatbot replaces 700 jobs, stirs ‘FOBO’
STOCKHOLM, SWEDEN — Swedish fintech giant Klarna has announced that its new artificial intelligence (AI)-powered chatbot, integrated with OpenAI‘s technology, has replaced the workload of 700 live customer service agents.
In just one month of operation, the AI assistant has handled a staggering 2.3 million conversations, accounting for two-thirds of Klarna’s total customer service inquiries.
The company reports that the chatbot has achieved customer satisfaction ratings on par with human agents while resolving issues 25% faster and reducing repeat inquiries by a quarter.
“This AI breakthrough in customer interaction means superior experiences for our customers at better prices, more interesting challenges for our employees, and better returns for our investors,” said Sebastian Siemiatkowski, co-founder and CEO of Klarna.
The company announced in December 2023 a hiring freeze across most departments as it shifts focus towards AI capabilities. Its annual report revealed that Klarna had dropped more than 1,200 employees – from 5,441 to 4,201 – between 2022 and 2023.
“Klarna is at the very forefront among our partners in AI adoption and practical application,” said Brad Lightcap, COO of OpenAI.
“Together we are unlocking the vast potential for AI to boost productivity and improve our day-to-day lives.”
The announcement had immediate financial repercussions, with Teleperformance, a customer experience giant, seeing its stock hit a seven-year low due to fears of AI overtaking telecommunications jobs.
The news has reignited concerns over AI’s impact on jobs, with a Gallup survey showing an increase in the “fear of becoming obsolete” (FOBO) among workers over the past two years.
Goldman Sachs predicts AI advancements could jeopardize 300 million jobs globally due to automation while tech billionaire Elon Musk says AI will end need for jobs, but many believe human labor will still be necessary for many roles.
