Swedish fintech giant Klarna, once a vocal advocate for AI-driven customer service, is reversing course and rehiring human workers after its ambitious automation strategy failed to meet expectations. The company, which had previously claimed AI could replace 700 customer service jobs, is now acknowledging that human support remains essential for maintaining service quality.
AI’s Limitations in Customer Service
Klarna’s AI chatbot, launched in early 2024, initially handled 75% of customer interactions, processing 2.3 million conversations monthly. However, users quickly criticized the bot for scripted responses and an inability to handle complex issues like refund negotiations and multilingual support. CEO Sebastian Siemiatkowski, who had once declared that “AI can already do all our jobs”, admitted that the shift had led to lower service quality.
The Return to Human Support
In response, Klarna is now recruiting human customer service agents, targeting students, rural workers, and loyal Klarna users for fully remote roles. Siemiatkowski emphasized that investing in human support is the future, acknowledging that AI alone cannot replace the personal touch customers expect.
Balancing AI and Human Interaction
While Klarna remains committed to AI innovation, the company is now focused on striking a balance between automation and human interaction. The move highlights a broader industry trend—while AI can enhance efficiency, human expertise remains irreplaceable in customer-facing roles.
This shift serves as a cautionary tale for businesses eager to replace human workers with AI. Klarna’s experience underscores the importance of quality over cost-cutting, proving that while AI can streamline operations, human judgment and empathy are still crucial in customer service and for any organiation to truly provide exceptional and top notch services, a multifaceted, mixed and hybrid approach is required.
