Just a month after its international debut, Klarna’s AI-driven virtual assistant, powered by OpenAI technology, is making waves. Handling a remarkable two-thirds of all customer service chats, totaling 2.3 million conversations, the app-based chatbot has achieved customer satisfaction ratings equivalent to interactions with human agents. Klarna, poised for an upcoming IPO, estimates that this AI assistant could contribute to a $40 million profit improvement in 2024.
Klarna’s collaboration with OpenAI, announced last year, integrated ChatGPT technology into a shopping plug-in, enabling customers to make personalized decisions seamlessly. Evolving beyond initial capabilities, the AI assistant is now available worldwide, adept at managing tasks ranging from refunds and cancellations to handling disputes.
In its recent announcement, Klarna boldly claims that its AI assistant “is doing the equivalent work of 700 full-time agents.” Despite potential skepticism due to the company’s workforce reduction of approximately 700 employees in mid-2022, Klarna emphasizes that this calculation is unrelated to the layoffs. The company asserts that the figure aims to highlight the long-term impact of AI technology and foster transparency.
Klarna’s spokesperson clarified that the AI’s equivalent work is not a reflection of recent layoffs, citing ongoing customer service support from third-party entities with over 650,000 employees. Customers still have the option to engage with human agents if they prefer.
CEO Sebastian Siemiatkowski has been vocal about AI’s role in enhancing company efficiency, defending the partial hiring freeze in December as a response to the impact of AI on labor needs. The Stockholm-based fintech giant faced a significant valuation reduction in 2022 amid a broader e-commerce slowdown but rebounded during the 2023 holiday season, with buy-now, pay-later purchases contributing to a record-breaking $16.6 billion in online sales.
Klarna’s AI assistants, available in 23 markets and fluent in 35 languages, not only match human agents in customer satisfaction but also operate round-the-clock, catering to local immigrant and expat communities. The success of Klarna’s AI-driven approach signals a growing trend in AI applications, challenging traditional customer service norms.