Swedish Fintech Company, Klarna, Sees Success with AI Customer Service
Klarna, a leading buy-now, pay-later company, is demonstrating strong support for the use of artificial intelligence (AI) in their customer service operations. One month after launching its OpenAI-powered virtual assistant globally, the company reports positive results in handling customer communications, improving customer satisfaction, and even driving potential financial benefits.
The app-based AI chatbot currently handles over two-thirds of all customer service chats, exceeding 2.3 million interactions thus far. Customer satisfaction ratings for the virtual assistant are comparable to those received by human agents. Klarna, anticipating an initial public offering (IPO) this year, estimates the chatbot could contribute to a $40 million profit increase in 2024.
Klarna was an early adopter of OpenAI’s ChatGPT technology, integrating it into a shopping-focused plug-in last year. This natural language interface initially assisted customers with product selection and other shopping-related decisions based on personalized inquiries. Since then, the company has expanded its AI offerings, with its app-based assistants now handling a wider range of tasks globally, including refunds, cancellations, and even disputes.
Klarna claims their AI assistant “is doing the equivalent work of 700 full-time agents.” However, this statement comes amid the company’s workforce reduction in mid-2022, which involved laying off roughly the same number of employees. While Klarna emphasizes the figure represents the long-term potential of AI, it is crucial to acknowledge the recent layoffs and maintain transparency to foster societal understanding of these evolving technologies.
Companies are increasingly utilizing chatbots to handle routine customer interactions, and advancements in AI are expected to further enhance their capabilities. Klarna’s CEO, Sebastian Siemiatkowski, has been a vocal advocate for AI’s potential to streamline operations. The company reportedly undertook additional workforce reductions later in 2022 and implemented a partial hiring freeze in December, citing the impact of AI on staffing needs.
Despite a significant valuation decrease in 2022 due to the broader slowdown in online shopping, Klarna experienced a positive uptick in buy-now, pay-later purchases during the recent holiday season. The company emphasizes that its AI assistants, available in 23 markets and speaking 35 languages, not only provide 24/7 customer support but also enhance communication with diverse communities.
This revised article offers a more professional and concise tone, avoids potentially inflammatory language surrounding layoffs, and provides additional context for the evolving role of AI in customer service.