Klarna CEO on Balancing AI and Human Workers for VIP Service

At the London SXSW event, Klarna CEO Sebastian Siemiatkowski shared valuable insights about the company’s evolving workforce strategy amid AI adoption. Klarna previously claimed that AI replaced the work of 700 employees, leading to a significant reduction in staff from 5,500 to around 3,000 over two years. However, Siemiatkowski emphasized that this shift doesn’t eliminate the need for human workers but rather redefines their roles.

Siemiatkowski explained, “Two things can be true at the same time.” While AI agents have automated many manual, repetitive tasks—particularly in customer support—Klarna still values human customer service as a premium, VIP experience. He likened this to paying extra for hand-stitched clothing versus machine-made, highlighting the unique value humans bring to customer interactions.

The company’s cost savings from AI have allowed Klarna to reinvest heavily in employee cash and equity compensation, signaling a commitment to its workforce despite automation. Interestingly, engineering roles have remained relatively stable, but Siemiatkowski noted a growing trend of business professionals learning to code themselves. This hybrid skill set—combining business acumen with coding ability—is becoming increasingly valuable, especially when paired with AI tools.

Siemiatkowski personally uses ChatGPT as a private tutor to enhance his coding skills and better understand Klarna’s data infrastructure. This hands-on approach to AI adoption has helped the company improve its operations and decision-making processes. He described how he inputs Slack conversations into ChatGPT to clarify complex topics, demonstrating AI’s role as an accessible learning tool even for executives.

Beyond workforce changes, Siemiatkowski acknowledged AI’s darker side, such as accelerating fintech scams that threaten trust in high-trust societies like Sweden. This highlights the broader societal challenges AI introduces, requiring vigilance and innovative safeguards.

To better leverage AI, Klarna consolidated its data by moving away from multiple software services like Salesforce and Workday. Previously, gathering client information meant navigating through various platforms, complicating AI integration. By streamlining data sources, Klarna aims to create a more efficient, AI-friendly infrastructure that supports smarter business decisions.

Regarding Klarna’s pending IPO, Siemiatkowski remained cautiously optimistic, noting improved market conditions but offering no firm timeline. His lighthearted wish to see the U.K. rejoin the EU drew applause, reflecting broader geopolitical sentiments.

Balancing AI and Human Expertise for the Future

Klarna’s approach illustrates a nuanced balance between automation and human touch. By automating routine tasks, the company reduces costs and boosts efficiency, but it preserves human roles where empathy and personal connection matter most. This dual strategy not only enhances customer experience but also creates new opportunities for employees to upskill and engage with AI as a collaborative tool.

For businesses navigating AI integration, Klarna’s story offers a compelling example: embrace AI to eliminate tedious work, invest savings back into your people, and foster a culture where human insight and AI capabilities complement each other. This is not just about technology; it’s about reimagining work and customer relationships in the AI era.