Klarna's AI Support: 700 Jobs Cut, Then Humans Rehired for Edge Cases

Swedish fintech Klarna automated its customer support with an AI assistant powered by OpenAI technology, handling 2.3 million conversations in its first month—about two-thirds of all chats. The AI, which could autonomously execute tasks like refunds and payment plan changes, reduced resolution time from 11 minutes to under two, and cut repeat contacts by 25%. Klarna estimated the AI did work equivalent to 700 full-time employees, and the company reduced its external support staff from 3,000 to 2,300. However, the remaining human agents faced a higher proportion of edge cases—non-standard situations requiring contextual judgment and empathy. Klarna responded by forming a team of about 100 high-skilled specialists to handle complex requests, while the AI's workload increased to the equivalent of 850 employees and continues to handle around 80% of all support chats. The key lesson, according to the report, is that while AI can replace routine work, it makes human expertise more crucial for exceptional cases.