Fintech giant Klarna, which powers e-commerce transactions for global brands like Expedia, Macy’s, and Nike, is making headlines for its bold adoption of artificial intelligence.
CEO Sebastian Siemiatkowski, recently shed light on Kiarna’s AI integration, emphasizing its capability to perform the equivalent work of 700 customer service agents. In an interview with CBS News, Siemiatkowski delved into the motivations behind sharing this data, the chatbot’s impact, and the wider implications of AI for society.
“We worry in general about the effects this may have on society, so we decided to be upfront about the fact that it has had some amazing outcomes for customers,” Siemiatkowski said.
He clarified that AI’s deployment is unrelated to the company’s 2022 layoffs as AI implementation focuses on improving customer service efficiency rather than causing job losses, at least short-term.
Klarna’s AI chatbot, powered by ChatGPT, handles two-thirds of customer service chat inquiries, boasting satisfaction rates comparable to human agents. Siemiatkowski said there has been a 25% reduction in repeat inquiries, but emphasized the importance of retaining the option for customers to interact with a human. The AI’s multilingual capabilities enhance the experience for diverse customer groups.
The interview touched on concerns about AI’s potential mistakes or inaccuracies. Siemiatkowski acknowledged the imperfection of both humans and AI but emphasized monitoring AI to ensure fewer and less severe errors than humans. The CEO stressed the objective of making AI a tool for enhancing productivity and creative contributions, allowing employees to focus on value-adding tasks.
Siemiatkowski said Klarna has ceased hiring and is experiencing a reduction in size through natural attrition. The integration of AI across products and services has prompted a reevaluation of hiring practices.
Klarna strove for transparency with employees, communicating the potential for doing more with less. Siemiatkowski expressed optimism about investing more per employee and raising compensation as the company grows, making employees more attractive in the job market.
The estimation of AI’s $40 million in cost savings for Klarna stems from reduced spending on customer service suppliers.
Siemiatkowski did raise questions about managing this massive change, emphasizing the
need for societal support for individuals affected by AI-influenced transformations. While new AI-related jobs may emerge, Siemiatkowski stressed the importance of providing meaningful support to those impacted by these technological shifts.RELATED CONTENT: Black Americans Are Turning To ‘Buy Now, Pay Later’ Apps To Help Offset The Cost Of Groceries