Overview

• Klarna has launched a recruitment campaign to hire remote, gig-style human customer service agents, marking a pivot from its heavy reliance on AI automation.
• CEO Sebastian Siemiatkowski admitted that prioritizing cost savings with AI hurt customer experience and brand reputation, prompting the shift back to human support.
• The company had replaced 700 customer service roles with AI chatbots in 2023, saving $10 million but facing criticism over service quality.
• Klarna plans to maintain a hybrid model, leveraging AI for speed while using human agents for empathy and complex interactions, with overall headcount expected to decline through natural attrition.
• The shift reflects broader industry challenges with AI, as many enterprises report limited ROI and struggle to meet consumer expectations for personalized service.