Klarna, the Swedish fintech giant known for its buy-now-pay-later services, is taking a step back from its aggressive automation strategy and bringing human voices back to its customer support channels. CEO and co-founder Sebastian Siemiatkowski has acknowledged that the company’s deep reliance on artificial intelligence went too far—at the cost of customer experience.
Now, Klarna is launching a new hiring initiative to bring real people back into the conversation.
From Automation to Authenticity
For over a year, Klarna has prioritized automation in an effort to cut costs and improve operational efficiency. But Siemiatkowski, speaking candidly from the company’s Stockholm headquarters, admitted that the customer experience suffered in the process. While AI performed admirably from a business standpoint, it couldn’t replicate the nuance and empathy of human interaction.
“We’ve come to realize that while AI is incredibly powerful, there are moments when our customers just want to speak with another person,” he said. “That option needs to be available, always.”
To address the gap, Klarna is piloting a new customer support model where human agents can work remotely—much like drivers in a rideshare system. The company is starting small, with two such agents already active, but the long-term vision is far more expansive. Klarna is targeting students, people in rural areas, and even fans of the brand who might want to work part-time from home.
The goal, according to Siemiatkowski, is to make sure human help is always within reach, no matter how advanced AI becomes.
A Reality Check on AI
Just a year ago, Klarna was one of the most vocal champions of artificial intelligence in the fintech world. It was among the first to partner with OpenAI, and in 2023, Siemiatkowski proudly positioned Klarna as the tech firm’s “favorite guinea pig.”
The company paused hiring during this period, channeling resources into building AI tools that eventually replaced the work of around 700 customer service agents. The announcement caused a stir across the industry—particularly for companies like France’s Teleperformance SE, whose shares jumped after Klarna’s AI performance was revealed.
But fast-forward to today, and Siemiatkowski sees things differently. “We leaned too hard into cost efficiency,” he admitted. “That ended up hurting quality. Now, we’re ready to reinvest in people and deliver better service.”
A Hybrid Approach Going Forward
Despite the shift in tone, Klarna is not abandoning AI altogether. The company is still heavily invested in using artificial intelligence to streamline internal systems, improve speed, and reduce costs in other parts of the business. Klarna is also developing a digital financial assistant powered by AI, which will help customers manage money, find better interest rates, and secure affordable insurance premiums.
With more than 93 million customers and over 600,000 partner retailers, Klarna’s ambition is to offer intelligent automation where it makes sense—but with a human safety net for when it doesn’t.
Siemiatkowski expects that as AI continues to evolve, it will still impact staffing. Klarna currently employs around 3,000 people, but due to natural attrition and technological improvements, that number may decline to about 2,500 over the next year. “It might happen even faster,” he said. “It’s hard to predict exactly, but the direction is clear.”
Behind the Strategic Shift: Financial Pressures and a Changing Market
Klarna’s reassessment of its AI strategy comes amid ongoing financial recalibration. After peaking at a valuation of $45.6 billion in 2021, the company’s worth plunged to $6.7 billion by mid-2022 following the collapse of the fintech bubble.
More recently, Klarna had set its sights on an IPO, aiming to raise at least $1 billion with a target valuation of over $15 billion. However, volatile market conditions in early 2025 forced the company to delay those plans.
With investors watching closely, Klarna’s leadership appears to be focused on balancing innovation with trust and reliability. Rebuilding customer loyalty through better support could prove just as important as streamlining back-end operations with AI.
