Klarna’s AI Gamble Backfires as CEO Calls Humans Back After $40B Wipeout
So, let’s talk about Klarna — one of the biggest fintech players in the “buy now, pay later” space — and how a bold leap into artificial intelligence might’ve taken them a step too far. This is a fascinating moment where innovation, ambition, and reality collided hard.
At one point, Klarna’s CEO Sebastian Siemiatkowski was bragging about not hiring anyone for over a year because the company’s AI systems, built in collaboration with OpenAI, had become so efficient. They replaced 700 full-time customer service workers with AI bots. It sounded like a cost-saving dream — until it started to unravel.
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Fast forward to 2025, and Klarna’s doing a total rethink. Despite AI pushing their revenue-per-employee to nearly $1 million, the quality of service tanked. Customers were left frustrated, and that sleek AI operation couldn’t keep up with the complexity or empathy required in customer interactions. Siemiatkowski himself admitted that they prioritized cost-cutting too heavily, sacrificing quality. That’s a massive admission from someone who just a year ago was all-in on automation.
Now, Klarna is bringing back the human touch — literally. They’re piloting a new model for human customer support using remote, on-demand workers in what they’re calling an “Uber-style” setup. Think students, rural folks, and Klarna enthusiasts who can log in as needed. It’s a rare pivot for a company that was betting everything on AI just months ago.
But it’s not all a retreat. AI is still very much in Klarna’s DNA. The company continues to integrate it across operations — from backend systems to creating a digital financial assistant. Yet, this latest move is a clear sign that even the most tech-forward companies can’t eliminate people from the equation entirely.
Let’s not forget the context either. Klarna’s valuation dropped from a massive $45.6 billion in 2021 to just $6.7 billion a year later. It started to recover, eyeing a $15 billion IPO — but those plans were paused due to market instability. At the same time, losses in Q1 2025 doubled to $99 million. Part of that? U.S. customers defaulting on their BNPL loans, a consequence of growing economic uncertainty. So yes, the AI plan didn’t deliver the full win Klarna hoped for — and investors noticed.
This isn’t just about one company. It’s a cautionary tale in the AI era: Efficiency is important, but it can’t fully replace human connection — at least not yet. Klarna’s course correction is a reminder that even with the smartest bots, sometimes, you still need to talk to a real person.
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