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Klarna CEO Warns AI Could Trigger Recession as Firm Rehires Customer Service Staff

Sebastian Siemiatkowski has shifted the payments firm toward a hybrid support system after admitting that its AI-only pilot reduced service quality

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Sebastian Siemiatkowski thinks AI-induced job loss could cause a recession.
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Overview

  • Siemiatkowski told The Times Tech podcast that replacing white-collar jobs with AI usually leads to at least a short-term recession and that he sees no way to avoid it
  • Klarna’s AI assistant has taken on the equivalent workload of 700 full-time customer service agents, helping cut its headcount from 5,500 to 3,000 since 2023
  • Facing service quality complaints, the company began recruiting human agents last month under a flexible, remote support model
  • Anthropic CEO Dario Amodei has warned that AI may eliminate half of entry-level white-collar positions within the next five years
  • Tech leaders remain divided on AI’s economic impact, with some like Google DeepMind’s Demis Hassabis arguing the technology will create new roles requiring creativity and adaptability