Swedish Firm Ditches Humans for AI: A Two-Year Journey to Automation

In a surprising twist, Swedish fintech company Klarna is planning to hire more human workers after realizing that its artificial intelligence (AI) customer agents weren’t quite cutting it. CEO Sebastian Siemiatkowski has acknowledged that the AI’s performance fell short, prompting a shift back to human employees. This decision comes after a period of heavy reliance on AI, which the company believed would streamline operations and reduce costs.

The AI Adventure

Klarna, known for its buy now, pay later services, embraced AI two years ago by partnering with OpenAI. The company aimed to enhance efficiency by reducing its workforce and increasing automation. At one point, Siemiatkowski even claimed that AI could handle the work of 700 customer service agents, leading to significant cost savings.

A Change of Heart

However, the enthusiasm for AI took a hit when the quality of work from these digital agents proved to be lacking. Siemiatkowski admitted that prioritizing cost over quality resulted in unsatisfactory customer service. He emphasized the importance of having a human presence available for customers who prefer it.

Hiring Human Workers Again

As a result of these revelations, Klarna halted hiring in 2023 while ramping up its AI usage. Now, the company is reversing course and planning to bring back human workers to ensure a higher standard of service. This shift highlights the ongoing debate about the balance between automation and the irreplaceable value of human interaction in customer service.

Klarna’s experience serves as a reminder that while AI can offer efficiency, the human touch remains essential in delivering quality service.

 


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