Klarna CEO Sebastian Siemiatkowski announced at London SXSW that the company will reintroduce human VIP customer service, despite previously relying heavily on AI to handle customer support. Siemiatkowski explained that two years ago, Klarna began using AI to automate repetitive tasks, significantly reducing its workforce from 5,500 to around 3,000 employees. This shift lowered salary costs and increased revenue per employee, but it did not eliminate the need for human interaction, especially for premium services. Siemiatkowski drew an analogy to the luxury market, where customers often pay extra for hand-stitched clothing. Similarly, Klarna aims to offer personalized VIP customer service to its premium clientele. While AI continues to handle mundane and repetitive tasks, human employees will focus on delivering a high-touch, personal experience. The CEO stated, “We can use AI to automatically take away boring jobs, things that are manual work, but we are also going to promise our customers to have a human connection.” The company’s engineering roles have remained stable, but Siemiatkowski emphasized the growing value of business-savvy employees who are also proficient in coding. He believes that such individuals will become increasingly crucial as they can leverage AI tools to advance the business. Siemiatkowski himself is using ChatGPT to enhance his coding skills and gain a deeper understanding of data, demonstrating how AI can assist executives and employees alike. He mentioned using ChatGPT as a private tutor to parse complex data and validate ideas, which has improved his engagement in technical discussions. However, Siemiatkowski acknowledged the potential drawbacks of AI, particularly in increasing the risk of scams. He cited the recent rise in fintech scams, noting that high-trust societies like Sweden are particularly vulnerable. “AI is obviously accelerating this,” he said, highlighting the need for vigilance and proactive measures to combat fraud. Siemiatkowski also discussed Klarna’s decision to discontinue the use of Salesforce and Workday, citing the need for more centralized data management to better integrate with AI. Previously, gathering client information required navigating multiple software platforms, which was inefficient. The company is streamlining its operations by consolidating data into a single, accessible system, thereby improving its AI capabilities and operational efficiency. Looking ahead, Siemiatkowski hinted at the possibility of an imminent IPO, though he was cautious in making any firm commitments. He expressed satisfaction with reduced market turbulence, indicating a more favorable environment for such a move. When asked about one change he would make if given a magic wand, Siemiatkowski jokingly suggested that the U.K. rejoin the EU, a statement that garnered applause from the audience. Industry experts view Klarna’s pivot towards human VIP service as a strategic move to differentiate itself in the competitive fintech landscape. By balancing AI automation with personalized human touch, the company aims to enhance customer satisfaction and loyalty, crucial elements for sustaining long-term growth. Klarna's emphasis on data consolidation and AI integration also underscores the company’s commitment to technological advancement and operational excellence. Despite challenges in managing a hybrid workforce and the rising threat of AI-driven scams, Klarna remains poised to leverage both human and AI resources effectively. Founded in 2005, Klarna is a Swedish fintech company known for its buy-now-pay-later (BNPL) services and seamless payment solutions. The company has faced scrutiny over its workforce reductions and reliance on AI, but Siemiatkowski’s approach highlights a balanced strategy that combines efficiency with customer service excellence.