What Is a Good Example of AI Enhancing Work Processes? Klarna

August 30, 2024

This essay is the work of a dumb dinobaby. No smart software required.

Klarna is a financial firm in Sweden. (Did you know Sweden has a violence problem?) The country also has a company which is quite public about the value of smart software to its operations. “‘Our Chatbots Perform The Tasks Of 700 People’: Buy Now, Pay Later Company Klarna To Axe 2,000 Jobs As AI Takes On More Roles” reports:

Klarna has already cut over 1,000 employees and plans to remove nearly 2,000 more

Yep, that’s the use case. Smart software allows the firm’s leadership to terminate people. (Does that managerial attitude contribute to the crime problem in Sweden? Of course not. The company is just being efficient.)

The write up states:

Klarna claims that its AI-powered chatbot can handle the workload previously managed by 700 full-time customer service agents. The company has reduced the average resolution time for customer service inquiries from 11 minutes to two while maintaining consistent customer satisfaction ratings compared to human agents.

What’s the financial payoff for this leader in AI deployment? The write up says:

Klarna reported a 73 percent increase in average revenue per employee compared to last year.

Klarna, however, is humane. According to the article:

Notably, none of the workforce reductions have been achieved through layoffs. Instead, the company has relied on a combination of natural staff turnover and a hiring freeze implemented last year.

That’s a relief. Some companies would deploy Microsoft software with AI and start getting rid of people. The financial benefits are significant. Plus, as long as the company chugs along in good enough mode, the smart software delivers a win for the firm.

Are there any downsides? None in the write up. There is a financial payoff on the horizon. The article states:

In July [2024], Chrysalis Investments, a major Klarna investor, provided a more recent valuation estimate, suggesting that the fintech firm could achieve a valuation between 15 billion and 20 billion dollars in an initial public offering.

But what if the AI acts like a brake on firm’s revenue growth and sales? Hey, this is an AI success. Why be negative? AI is wonderful and Klarna’s customers appear to be thrilled with smart software. I personally love speaking to smart chatbots, don’t you?

Stephen E Arnold, August 30, 2024

Written by Stephen E. Arnold · Filed Under AI, Financial, News

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Stephen E. Arnold monitors search, content processing, text mining and related topics from his high-tech nerve center in rural Kentucky. He tries to winnow the goose feathers from the giblets. He works with colleagues worldwide to make this Web log useful to those who want to go "beyond search". Contact him at sa [at] arnoldit.com. His Web site with additional information about search is arnoldit.com.