Discover top fintech news and events!
Subscribe to FinTech Weekly's newsletter
Read by executives at JP Morgan, Coinbase, Blackrock, Klarna and more
Klarna is hiring customer service agents again after a year-long pause, following a shift in strategy that saw the Swedish fintech lean heavily on artificial intelligence to handle user inquiries. CEO Sebastian Siemiatkowski confirmed the move in a recent interview, acknowledging that while AI-based solutions helped cut costs, they failed to meet the company’s standards for customer experience.
The decision marks a notable reversal for the buy now, pay later (BNPL) provider, which just months ago claimed its AI chatbot could replace the work of 700 agents. Now, Klarna is recruiting new remote support staff — targeting students, residents in rural areas, and loyal Klarna users — with an emphasis on restoring human presence to the customer journey.
AI Shortcomings Prompt Strategic Shift
Klarna's initial strategy, launched in 2023, aimed to reduce operational costs by automating up to 75% of customer support interactions through generative AI. The company said its chatbot handled more than 2.3 million conversations within a month of rollout, supporting more than 35 languages and managing topics like returns and payments.
Despite these numbers, internal and external observations pointed to limitations. The chatbot, according to some early users, often acted as a gateway to human support rather than a full-service solution. While Klarna had previously stated that AI would remain central to its support operations, the company now appears to be balancing automation with live human assistance.
This comes after a hiring freeze and a 22% drop in headcount throughout 2023, attributed largely to attrition. Employees were encouraged to rely on AI tools to bridge operational gaps left by departing colleagues. Now, the company has recalibrated its approach.
Renewed Focus on Customer Trust
Klarna’s move suggests that customer expectations for human interaction still weigh heavily, especially in financial services. The company’s revised approach now prioritizes clarity and availability: ensuring customers know they can always reach a human representative if needed.
Klarna is one of the most recognized fintech companies in Europe, with a valuation of $14.6 billion. It pioneered BNPL services globally and became Walmart’s exclusive BNPL provider earlier this year.
As fintech companies experiment with generative AI to improve efficiency and scale, Klarna’s pivot serves as a reminder of the trade-offs involved. The firm now sees “quality” human support as a competitive advantage, not just a cost center — a strategic shift that may resonate across the broader financial technology sector.
