Klarna Shifts Back to Human Customer Service After AI Falls Short CEO Admits

Months after claiming AI could replace human jobs, Klarna CEO Sebastian Siemiatkowski is reversing course. The company is now hiring human customer service agents after its AI chatbot failed to meet quality expectations.

The AI Experiment Backfires

• In February 2024, Klarna claimed its AI assistant could do the work of 700 employees, handling 2.3 million chats monthly.
• However, tests revealed the bot acted as a "filter"—providing scripted answers and quickly redirecting users to humans, as noted by Gergely Orosz.
• Siemiatkowski admitted the AI approach led to "lower quality" service despite cost savings.

Human Support Returns

• Klarna is now recruiting remote workers, targeting students, rural populations, and loyal users.
• The CEO emphasized: "Investing in the quality of human support is the way of the future for us."
• This marks a stark shift from Klarna’s 2023 hiring freeze, which reduced headcount by 22% (to 3,500 employees) via attrition.

Broader Context

• Klarna, valued at $14.6 billion, pioneered buy-now-pay-later services and recently became Walmart’s exclusive BNPL provider.
• The reversal highlights ongoing debates about AI’s limitations in complex customer interactions.

Klarna CEO Sebastian Siemiatkowski. Photographer: Chris Ratcliffe/Bloomberg via Getty Images