According to Martin Elwin, head of artificial intelligence at Klarna, approximately three-quarters of the company’s workforce now regularly utilize tools like ChatGPT. Klarna, known as the UK’s largest buy-now pay-later (BNPL) provider, is leveraging AI technology to streamline operations and reduce hiring costs.
Elwin revealed that Klarna has over 100 initiatives in development as it strives to achieve “superapp” status and aims to ensure all of its more than 5,000 employees are proficient in using AI tools. Unlike other companies that establish separate AI departments, Klarna is democratizing AI capabilities by empowering every employee with access to these tools.
The company gained attention in February for its AI assistant, powered by OpenAI, which reportedly handled a workload equivalent to 700 full-time customer service agents. Klarna’s commitment to AI adoption aligns with its objective to cut costs and achieve annual profitability, following aggressive expansion efforts since 2018.
While Klarna isn’t currently contemplating layoffs, CEO Sebastian Siemiatkowski stated in December that the firm was scaling back on new hires, except for engineers, due to advancements in AI. Elwin emphasized that Klarna’s focus is not on replacing employees but on enhancing their efficiency and skill sets.
Financial institutions worldwide are increasingly embracing AI to enhance productivity, and Klarna anticipates its AI assistant alone to drive a $40 million profit improvement this year. Elwin highlighted the value of AI tools for all employees, not just engineers, emphasizing the potential for learning and contribution to identifying crucial use cases.
Klarna’s preparations for a high-profile public listing, with a reported valuation target of $20 billion, indicate its ambitions for future growth. While the location of the listing is yet to be formally announced, all eyes are on Klarna as it continues its AI-driven transformation in the financial services sector.