Artificial intelligence is transforming the way we work, and Klarna, in collaboration with OpenAI, is a clear example of this.
What once seemed like a promising technological breakthrough is now redefining the fintech industry, improving efficiency, but also leaving a trail of job uncertainty.
Massive automation is enabling Klarna to deliver faster and more accurate customer service, but at what cost? Thousands of jobs are being replaced by machines, raising a thought: what will the future of work look like in a world where AI becomes the new norm?
What is Klarna?
Klarna is a Swedish fintech that has revolutionized the way people shop online by offering flexible payment solutions. Its goal is to make shopping easier and more convenient by allowing consumers topay in 3 interest-free installments.
- Pay in 30 days, with the possibility of receiving the product before payment.
- Long-term financing, allowing for more comfortable payments over time.
This payment flexibility not only benefits consumers, but also merchants, who see an increase in sales and customer satisfaction. In addition, Klarna facilitates the management of purchases through its mobile application, which allows users to control their payments simply and securely.
From Klarna you can buy products from hundreds of brands.
Key facts about Klarna
The company’s figures are impressive:
- Transaction volume: Klarna manages approximately $100 billion in transaction volume worldwide.
- Number of merchants: The platform has 500,000 associated merchants.
- Number of consumers: Klarna has 100 million consumers worldwide.
- Number of employees: The company has approximately 4,000 employees.
- Global coverage: Klarna operates in more than 20 countries.
Klarna and OpenAI: The Alliance that Revolutionizes Customer Service
A decisive factor in Klarna’s evolution has been its strategic partnership with OpenAI.
This partnership began in 2022, when Klarna decided to integrate artificial intelligence (AI) into its customer service, in collaboration with OpenAI and its ChatGPT technology.
Implementing AI has enabled Klarna to automate two-thirds of customer service inquiries, which equates to 2.3 million interactions per month.
Key benefits include:
- Speed of resolution: Queries that used to take an average of 11 minutes are now resolved in less than 2 minutes.
- Global accessibility: The AI assistant is available 24 hours a day, in 23 markets and in more than 35 languages, significantly enhancing the customer experience.
- Dispute resolution: Klarna also uses AI to manage disputes, drastically reducing pending cases and streamlining processes.
Thanks to this partnership, Klarna has demonstrated that artificial intelligence can deliver a fast and accurate customer experience while maintaining high levels of satisfaction.
One of the outstanding components in this implementation has been the RAG technology. RAG technology technology, which I have already mentioned in previous contents.
Deprecation of applications in Klarna:
Klarna decided to stop using Salesforce and other similar platforms because of the dispersion of information in different systems, which created data silos and made it difficult to collaborate across teams.
To solve this problem, Klarna chose to centralize information in a proprietary internal system based on a Knowledge graph that stores and organizes data in a consistent manner.
This allows all employees to have access to unified and up-to-date information.
The company has an internal system, called Kiki. This is an internal chatbot that facilitates access to information and answers questions about anything related to the company, such as teams, projects and employees.
Kiki is available both in Slack and as an internal Wikipedia-like interface.
While Klarna continues to use some external services (such as Slack for messaging and Deel for payroll management), it is migrating other critical functions to internal systems, eliminating tools that fragment collaboration.
The main reason behind this migration is to reduce complexity and improve the ability to collaborate between teams by reducing the number of applications in use and centralizing access to information.
Impact of AI on Employment: Massive Layoffs
While AI has brought efficiency gains, it has also led to a significant reduction in Klarna’s workforce.
According to CEO Sebastian Siemiatkowski, the use of AI has allowed the company to shed the work of 700 full-time employees, leading the fintech to reduce its staff from 5,000 to 3,800 employees, with plans to go to 2,000 in the next few years.
This downsizing has been made possible by AI’s ability to handle large volumes of work, optimizing both cost and operational efficiency.
However, this shift has raised concerns about the long-term impact of automation on employment, not just at Klarna, but in the fintech industry in general.
The Future of AI Work: A Threat or an Opportunity?
Klarna’s use of artificial intelligence raises questions about the future of employment.
As fintech and other companies continue to adopt automation solutions, it is likely that more jobs related to repetitive and procedural tasks will be taken over by AI.
This brings to the table the need to rethink the role of employees in the digital age.
Although AI has proven to be very efficient, humans will still be needed to manage more complex, creative and emotionally charged tasks.
Businesses, governments and society in general will have to prepare themselves to handle the social and economic impact of this technological transformation.
What do you think the impact of AI will be on your industry?
Do you think automation will benefit employees or companies in the long run?
Leave me your comments!
Have a good week!
