Klarna, a Swedish fintech startup, says that artificial intelligence has suddenly replaced 700 employees, increasing fears of a future where millions of jobs are simply dispensable.
The data published by Klarna – a purchase financing service that is also available in Spain – is quite revealing. It is an automated chatbot thanks to OpenAI, accessible from the startup’s app, which is already capable of supporting two-thirds of all communications with its clients, equivalent to about 2.3 million conversations. According to the report, the virtual assistant based on generative artificial intelligence has obtained satisfaction ratings similar to those obtained by human agents.
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The virtual chatbot based on artificial intelligence is capable of processing returns, cancellations, and even resolving disputes. All this has made it possible to dispense with about 700 employees, according to the Swedish startup.
The use of automated systems to answer simple questions in chats is not new; it has been used for years, with greater or lesser success. But the use of generative artificial intelligence allows a much closer relationship between the client and the machine, through natural and conversational language. In many cases, especially if they are simple questions, the user may not know that they are talking to an AI.
Criticism Of Klarna for Replacing Employees with Artificial Intelligence
Klarna, once the highest valued fintech in Europe, was criticized for the way it carried out layoffs. In the summer of 2022, CEO Sebastian Siemiatkowski published a spreadsheet on LinkedIn revealing the names of some of his laid-off employees.
At that time, they laid off 700 people, 10% of their total employees. Then, in December 2023, they announced that they would stop hiring, in part because of the impact that the adoption of artificial intelligence has had on the need to increase the customer support team.
According to statements from Klarna to Fast Company, the savings in personnel thanks to AI “are not related to layoffs after 2022,” they explain. “We have chosen to share this data to explain what the consequences of using artificial intelligence are in the long term. We believe it is important to be transparent to create a better understanding at a social level and to be able to talk about how we are going to navigate this transformation.”
Read Also: Artificial Intelligence: Creating More Accessibility in Companies
According to the startup, the virtual assistant based on generative artificial intelligence is available in 23 markets and is capable of speaking in 35 different languages. They also claim that they have been able to improve communications with migrant communities in all their markets. Additionally, remember that not only is it equivalent to humans in terms of customer satisfaction, but it is available 24/7.
Klarna estimates that replacing these 700 employees with artificial intelligence for after-sales service will represent an increase in profits of around 40 million euros annually during 2024.
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