Klarna changes its AI tune and again recruits humans for customer service

A year after claiming that its AI chatbot could do the work of 700 representatives, Klarna is turning back to people to handle more of its customer service work.

The buy now, pay later firm now wants customers to always have the option to speak with a human, Klarna spokesperson Clare Nordstrom told CX Dive. 

“While Klarna pioneered the use of AI in customer service with groundbreaking results, this strategy will now evolve to the next level,” Nordstrom said in an email. “AI gives us speed. Talent gives us empathy. Together, we can deliver service that’s fast when it should be, and emphatic and personal when it needs to be.”

It’s a drastic change from a year ago, when the firm went all in on AI, laid off workers and paused hiring. The shift highlights the need for the option to speak to a human in customer service — and to use AI as a supplement, not a replacement, for staff, according to Julie Geller, principal research director at Info-Tech Research Group.

“The key takeaway is that AI should augment human agents — not replace them,” Geller said in an email. “Automate the routine to drive efficiency, but always ensure customers have a clear, easy path to a human, especially when emotions or complexity come into play.”

Klarna CEO Sebastian Siemiatkowski said just as much in an interview with Bloomberg Thursday.

“From a brand perspective, a company perspective … I just think it’s so critical that you are clear to your customer that there will be always a human if you want,” Siemiatkowski said. 

Klarna is now recruiting workers for what Siemiatkowski referred to as an Uber-type customer service setup. Starting with a pilot program, the firm will offer customer service talent “competitive pay and full flexibility to attract the best,” with staff able to work remotely, according to Nordstrom.

“AI solves the easy stuff — our experts handle the moments that matter,” Nordstrom said. “That’s why we’re running this pilot, bringing in highly educated students, professionals and entrepreneurs for a new kind of role that blends frontline excellence with real-time product feedback.” 

One of the goals is to replace the thousands of workers that Klarna currently outsources, Siemiatkowski told Bloomberg. 

Back in February 2024, Klarna touted impressive figures: The AI assistant had taken over two-thirds of customer service chats — 2.3 million in total — in its first month. Its handling of customer service chats resulted in average resolution times of less than 2 minutes. 

The AI still plays a crucial role, according to Nordstrom. The chatbot still handles two-thirds of all customer inquiries. Since launch, response times have improved by 82%, and Klarna has seen a 25% drop in repeat issues. 

“But in a world of automation, nothing is more valuable than a truly great human interaction. That’s why we’re doubling down — investing in the human side of service: empathy, expertise, and real conversations,” Nordstrom said.

Like many companies, Klarna had turned to AI as a form of cost-cutting, Siemiatkowski told Bloomberg. 

“Initially, Klarna embraced AI with an eye toward cost savings and efficiency — but perhaps underestimated the tradeoff,” Geller said. “As customers increasingly voiced frustration over impersonal interactions and limited access to human help, it became clear this approach risked undermining the very experience they aimed to improve. That kind of friction doesn’t just erode satisfaction; it carries real financial and reputational consequences.”

Siemiatkowski acknowledged that Klarna had gone too far in the wrong direction with AI.

“As cost unfortunately seems to have been a too predominant evaluation factor when organizing this, what you end up having is lower quality,” Siemiatkowski told Bloomberg. “Really investing in the quality of the human support is the way of the future for us.”

The firm’s shifting customer service strategy is perhaps unsurprising considering consumers’ overall frustrations with chatbots and the technology’s shortcomings.

A Verint survey released last year found more than two-thirds customers have had a bad chatbot experience, and in that group, the top complaint was inability to answer questions.

Keep your files stored safely and securely with the SanDisk 2TB Extreme Portable SSD. With over 69,505 ratings and an impressive 4.6 out of 5 stars, this product has been purchased over 8K+ times in the past month. At only $129.99, this Amazon’s Choice product is a must-have for secure file storage.

Help keep private content private with the included password protection featuring 256-bit AES hardware encryption. Order now for just $129.99 on Amazon!

Help Power Techcratic’s Future – Scan To Support

If Techcratic’s content and insights have helped you, consider giving back by supporting the platform with crypto. Every contribution makes a difference, whether it’s for high-quality content, server maintenance, or future updates. Techcratic is constantly evolving, and your support helps drive that progress.

As a solo operator who wears all the hats, creating content, managing the tech, and running the site, your support allows me to stay focused on delivering valuable resources. Your support keeps everything running smoothly and enables me to continue creating the content you love. I’m deeply grateful for your support, it truly means the world to me! Thank you!