Klarna Retreats from AI-Only Customer Service Model Amid Quality Concerns

Klarna Group Plc, once hailed for its aggressive push to integrate artificial intelligence across customer support operations, is backtracking after CEO Sebastian Siemiatkowski admitted the strategy compromised service quality. Speaking at Klarna’s Stockholm headquarters, he acknowledged that prioritizing cost over experience led to “lower quality” customer interactions. The fintech giant had halted hiring for over a year to focus on AI development, but Siemiatkowski now emphasizes that “investing in the quality of the human support is the way of the future.”

In a strategic pivot, Klarna has begun hiring for customer support roles, marking a rare reversal in its tech-driven trajectory. The company is trialing an innovative model where remote workers — including students and people in rural areas — can log in and offer support on demand, mimicking an “Uber-type” system. Klarna is also exploring the idea of recruiting its own users as customer agents to reinforce a human touch, which Siemiatkowski stressed is essential for both brand and business credibility.

Despite the recalibration, AI remains central to Klarna’s broader operational overhaul. The company continues to rebuild its technology stack with AI at the core and is developing a digital financial assistant to help users secure better financial deals. Klarna’s earlier announcement that AI replaced the workload of 700 agents caused industry-wide ripples, yet its workforce is still projected to shrink — from 3,000 to 2,500 employees over the next year — as AI capabilities improve.

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