Klarna, a Swedish company known for its “buy now pay later” financing option, has recently disclosed how it is utilizing AI to increase its profits. With over 150 million active consumers and more than two million transactions processed daily, Klarna has developed an AI Assistant to automate much of its customer service process. This AI Assistant can handle a wide range of queries in multiple languages, significantly reducing repeat inquiries and improving resolution times.
The AI Assistant has been instrumental in improving customer satisfaction scores and reducing repeat inquiries by 25 percent. It is currently handling the workload equivalent to 700 full-time agents and completing tickets in less than two minutes, rather than the previous 11 minutes. The tool is available in 23 markets and engages with customers in more than 35 languages, highlighting its global reach and impact.
The investment in Klarna’s AI Assistant is in the tens of millions, resulting in cost savings of over $40 million per year for the company. This development underscores the potential for AI to revolutionize customer interaction and improve efficiencies in various industries. As more big brands invest in AI solutions, the technology is expected to become more accessible and affordable for small and mid-sized businesses in the near future.
Klarna’s co-founder and CEO, Sebastian Siemiatkowski, emphasized the positive impact of the AI Assistant on customer experiences, employee challenges, and investor returns. The AI breakthrough in customer interaction represents a key milestone in the adoption of AI technology and its transformative effects on society. Research firm Gartner highlights the significance of AI in customer-facing operations, making Klarna’s AI Assistant a leading example of the application of AI in customer service.
For Klarna’s employees, the implementation of AI in customer service operations may lead to new challenges and opportunities. While some roles may be replaced by AI, high-performing employees who can provide superior customer service will likely retain their positions. The focus on enhancing customer service through AI technology reflects a commitment to delivering faster and more efficient services for customers, driving positive outcomes for the company and its stakeholders.
Overall, Klarna’s success with its AI Assistant serves as a testament to the potential of AI in improving customer interactions, streamlining operations, and increasing profitability. As AI applications become more widespread and affordable, smaller businesses are expected to adopt similar technologies to enhance their customer service capabilities and drive business growth. The future of AI in customer service is promising, with more innovations and advancements on the horizon.
