Klarna Cut Ties with Salesforce to Go All-In on AI – Now They’re Hiring Humans Back : Wiola Balicka
by: Wiola Balicka
blow post content copied from Salesforce News | Salesforce Ben
click here to view original post
**Summary:** Last year, Klarna decided to completely embrace artificial intelligence (AI) by severing ties with Salesforce and aiming to replace many human jobs with AI systems. However, this strategy has backfired as they now acknowledge that their approach went too far. Klarna's CEO, Sebastian Siemiatkowski, initially championed AI, even stating he wanted the company to be a testing ground for OpenAI. But, due to financial pressures and disappointing results from AI customer support, the company is changing its strategy. Klarna is now piloting a new model where remote workers can assist with customer inquiries, resembling an “Uber-type of setup.” This approach aims to tap into underrepresented talent pools, such as students and those living in rural areas, while also addressing the quality of customer service. Siemiatkowski emphasized the importance of human support, stating that relying solely on AI has led to lower-quality responses despite cost savings. Klarna remains optimistic about using AI where it’s effective but recognizes the need for a human touch in many roles. The case illustrates significant challenges in fully replacing people with AI, sparking broader discussions on the impact of AI on jobs. **Key Details:** - Klarna previously cut ties with Salesforce to implement AI-driven solutions. - The company’s valuation dropped significantly, leading to workforce reductions. - Now, Klarna is reintroducing human support through a flexible remote work model. - The shift highlights the importance of human roles alongside AI in customer service. **Contextual Insights:** The situation with Klarna serves as a reminder that while AI can streamline processes and cut costs, it cannot yet replace the nuanced and empathetic responses that human workers provide. The growing reliance on AI is a hot topic, raising questions about job security and the technology’s current limitations. **Hashtags for SEO:** #Klarna #AI #CustomerService #Workforce #RemoteWork #JobMarket #TechTrends #Fintech #AIFailures #HumanTouch
Last year, Klarna made the decision to cut ties with Salesforce as part of a complete overhaul, creating equivalent systems through the power of AI. Fast forward to now, and the pivot looks to have backfired.
The company is now admitting that their strategic cost-cutting approach “has gone too far”, and that the company’s commitment to AI has significant limits. They are now piloting a new approach that will see remote workers assist with customer queries and complaints.
Did Klarna Go Too Far, Too Fast With AI?
In 2023, Klarna CEO Sebastian Siemiatkowski had a plethora of positive things to say about AI, going as far as to say he wanted his company to become OpenAI’s “favorite guinea pig”. A hiring freeze at Klarna was then put in place, as the optimistic CEO looked to replace as many humans on the payroll as possible with an amicable AI agent.
Siemitakowski exclaimed about cutting the company’s workforce in half last year, and notoriously broke off ties with both Salesforce and Workday to fully commit to his ambition of an AI-run Klarna.
But in the past few months, the sentiment from Klarna’s CEO changed drastically. It was only in March when Siemitatowski took to X, detailing that he was “tremendously embarrassed” by having to explain Klarna’s fallout with Salesforce.
Now, this all-in approach can be largely attributed to the financial pressure that has been mounting on the company since the fintech boom. In a fundraising round in 2022, its valuation plunged as low as $6.7B, down from a peak of $45.6B the previous year. Shrinking the headcount like they have saved the company around $50M in annual savings – which is a significant motivator for the AI approach.
But the promise of faster resolution times and high customer satisfaction levels solely thanks to AI has fallen short, and the money they are saving doesn’t compensate for the poor quality that their AI tools are responding with.
What Is Klarna’s New Strategy Going Forward?
If the failed “all-in AI” approach has taught Klarna anything, it’s that customers should always have a human assistant available when necessary. In hopes of reintroducing this, the company are piloting a new strategy where employees can log in and work remotely, described as an “Uber-type of setup”.
The ambition is to tap into underrepresented talent pools, such as students or individuals in rural areas. This approach not only helps expand access to meaningful employment opportunities but also offers a cost-effective and sustainable hiring strategy.
“As cost unfortunately seems to have been a predominant evaluation factor when organizing this, what you end up having is lower quality,” Siemitatowski explained, speaking with Bloomberg. “Really investing in the quality of human support is the way of the future for us.”
Klarna still remains enthusiastic about AI, but plans on using it efficiently and incorporating it where necessary to rebuild the company’s tech stack.
Final Thoughts: Why AI Is Not Good Enough to Replace People (Yet)
Klarna’s AI failures show the real problems with using untested AI technology to replace humans. There are, of course, significant financial upsides – but the performance you get back could hurt the business even more.
This also points to the wider problems related to the “AI will replace many human jobs”. I have personally seen this conversation spark conversation and debate across many industries. Popular entrepreneur and podcast host Steven Bartlett recently released an AI podcast with “industry experts” telling the masses that their jobs could be gone within two years.
Whether the basis of the argument is true or not, I have concerns about how far this falls into scare-mongering, especially as a lot of the AI tools that are seemingly going to replace us aren’t up to scratch yet.
Personally, I see this most recent case with Klarna as an important case study as to why the human element of many jobs is vital. The company has admitted their mistakes and not only backtracked with a thoughtful plan, but also set in place potential jobs for people who need them most.
AI is great. It’s powerful, it’s capable, and it’s ready to do some repetitive work. But it’s not ready to take over and take your job. Not yet, anyway.
The post Klarna Cut Ties with Salesforce to Go All-In on AI – Now They’re Hiring Humans Back appeared first on Salesforce Ben.
May 15, 2025 at 06:13PM
Click here for more details...
=============================
The original post is available in Salesforce News | Salesforce Ben by Wiola Balicka
this post has been published as it is through automation. Automation script brings all the top bloggers post under a single umbrella.
The purpose of this blog, Follow the top Salesforce bloggers and collect all blogs in a single place through automation.
============================
Post a Comment