Klarna explains: Jobs outsourced, no layoffs yet after AI launch
STOCKHOLM, SWEDEN — Klarna CEO Sebastian Siemiatkowski has clarified that there are no layoffs in the company now that their new artificial intelligence (AI) chatbot handles the equivalent workload of 700 full-time customer service agents.
“Klarna does not employ customer service agents ourselves, we use some of the large customer service providers out there. They’re outsourced — they are not employees,” Siemiatkowski said in a recent CBS News interview.
He explained that the adoption of AI and the reduction of customer service needs did not relate to the company’s layoffs in 2022 but highlighted a strategic shift towards more efficient operations.
“In the short-term, there are no layoffs or implications for employees as a result of us launching this customer service AI chatbot.”
Before unveiling the technology, the Swedish fintech required an average of 3,000 outsourced agents. Now, thanks to AI, they only need a little over 2,000 agents to handle the remaining inquiries.
“We wanted to make policymakers aware that this isn’t something that’s happening in the future — it’s happening now. We think it is critical that society start thinking about this major change,” Siemiatkowski urged.
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 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.
Siemiatkowski explained why the company is so transparent about AI’s disruptive capabilities. “We worry in general about the effects this may have on society, so we decided to be upfront about the fact that it has had some amazing outcomes for customers,” he said.
He highlighted that the chatbot matches human performance in customer satisfaction scores while reducing repeat inquiries by 25%. It can also communicate in 35 languages, improving service for immigrant and expat customers.
“The key metric we use is making sure it makes fewer mistakes, on average, than humans do. That’s the objective and it’s something we’ve been monitoring very closely.”
While AI adoption is accelerating, Siemiatkowski believes human workers should still have a role. “We think it’s important that people are still given the option to speak to a human,” he said.
A report from real-time AI coaching firm Cogito revealed that 53% of consumers still prefer human interaction for addressing complex customer service issues despite recent AI advances and automation.
