Klarna, a Swedish-based company known for its “buy now pay later” financing option, has recently revealed its use of AI to increase profits. With over 150 million active consumers and more than half a million merchants on board, Klarna is not a small player in the industry. The company employs over 5,000 people and processes millions of transactions daily.
After licensing the ChatGPT model from OpenAI in 2022, Klarna developed its own AI Assistant to automate customer service processes. This AI Assistant can handle various customer queries, provide real-time updates, and assist in multiple languages 24/7. In the past year, the AI Assistant has completed 2.3 million conversations and now acts as the equivalent of 700 full-time agents with a high customer satisfaction score.
Klarna reports that their AI Assistant has improved accuracy in ticket resolution and reduced repeat inquiries by 25%. Tickets are now resolved in less than two minutes, compared to 11 minutes before the implementation of AI. The tool is available in 23 markets and communicates in over 35 languages. Although the investment in this technology is substantial, Klarna estimates savings of over $40 million per year.
The impact of AI on customer service can have various implications for employees. While some may face challenges as tasks become automated, others may enhance their performance and provide better service to customers. Klarna’s CEO, Sebastian Siemiatkowski, emphasizes the benefits of AI in improving customer experiences, reducing costs, and ultimately generating better returns for investors.
The use of AI in customer-facing operations is growing, and Klarna’s success with its AI Assistant sets a benchmark for other companies. While smaller businesses may not afford such advanced AI solutions now, as more big brands invest in similar technologies, the cost of AI customer service applications is likely to decrease. This trend could lead to more efficient customer service experiences, reduced headcount, and increased profits for businesses of all sizes.
As the use of generative AI continues to expand in the real world, companies like Klarna are leading the way in leveraging AI technology to enhance customer interactions and drive business growth. With AI becoming more accessible and affordable in the coming years, businesses of all sizes can expect to see advancements in customer service automation that will revolutionize the industry. Klarna’s AI Assistant is just the beginning of a new era in customer service innovation powered by artificial intelligence.
