Latest news with #Siemiatkowski
Yahoo
3 days ago
- Business
- Yahoo
CEO Who Bragged About Replacing Human Workers With AI Realizes He Made a Terrible Mistake
Swedish buy-now-pay-later company Klarna, whose CEO once bragged about its automated customer service AI bots doing the work of "700 full-time agents," is now in deep trouble. The fintech outfit is facing net losses of $99 million for the first quarter of this year, CNBC reports, which is more than double compared to the same period last year. The company had already paused its highly anticipated IPO in the US last month, which once valued it at over $15 billion. And it's all particularly noteworthy because of how CEO Sebastian Siemiatkowski previously bragged that he hadn't hired anyone in a year, following a doubling down on AI tech. During an interview with Bloomberg earlier this month, however, Siemiatkowski struck a dramatically different tone, revealing that the gambit hadn't paid off. He admitted that "there will always be a human if you want" when it comes to customer service — a sign of the times, as investors are starting to ask some tough questions given widespread economic uncertainty. Nonetheless, it wasn't a complete reversal. Siemiatkowski defended his embrace of AI last week, boasting that the tech allowed Klarna to shrink its workforce by 40 percent. During its Monday earnings call, an AI-generated avatar of Siemiatkowski took over for the executive, the Financial Times reports, showing that the company is far from giving up on the tech. But public support for the tech is unmistakably falling off. Language learning company Duolingo has faced a torrent of pushback from social media users, particularly on TikTok, after its controversial CEO Luis von Ahn announced that AI will gradually replace all contractors. However, while it could be easy to see Klarna as the canary in the coal mine for the AI industry as a whole, its rapidly mounting losses involve other factors as well. As the FT points out, many of the company's American customers are failing to repay their buy-now-pay-later loans. Klarna's credit losses have risen 17 percent year-on-year to $136 million, reflecting widespread economic uncertainty and falling consumer confidence as president Donald Trump's trade war takes its toll. In response, Klarna has said that it's "closely monitoring changes in the macroeconomic environment" and "remains well-positioned to adapt swiftly if required." More on Klarna: Company Regrets Replacing All Those Pesky Human Workers With AI, Just Wants Its Humans Back Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Mint
23-05-2025
- Business
- Mint
From boardrooms to avatars: CEOs embrace AI for earnings calls
In a striking display of the growing influence of artificial intelligence in corporate communications, a number of high-profile chief executives have begun deploying AI-generated avatars to deliver their companies' quarterly results, according to a TechCrunch report. This week, Klarna and Zoom joined the ranks of firms experimenting with digital doubles, signalling a potential shift in how investors and analysts engage with corporate leadership, added the publication. You may be interested in Reportedly, the Swedish buy-now-pay-later giant Klarna premiered an 83-second video featuring an AI rendition of its co-founder and CEO, Sebastian Siemiatkowski, to unveil its Q1 2025 financial performance. Addressing viewers with the opening line, 'It's me, or rather, my AI avatar,' the digital Siemiatkowski guided audiences through the results. Klarna, which has been transparent about integrating AI into its operations, recently attributed part of its workforce reductions to efficiencies gained from machine-learning investments. During Zoom's Q1 2026 earnings call, CEO Eric Yuan introduced a new twist by presenting part of the report through a digital avatar created using the company's own AI Companion tool. 'I'm using our custom avatars for Zoom Clips with AI Companion to deliver my section of the earnings update,' announced the lifelike avatar. A subtle watermark indicated that the video segment had been generated using Zoom's AI technology. Yuan later joined the live Q&A session in person, where he shared his excitement about the virtual avatar and hinted that such AI-powered representations could soon play a larger role in business communications. These developments underscore an emerging trend among technology leaders keen to demonstrate their organisations' AI prowess not only in product development, but in high-visibility investor relations. As digital avatars mature, they may allow executives to attend multiple events simultaneously, ensure consistent messaging and even operate in different time zones without the need for physical presence — heralding a new era of 'digital twin' governance.
Yahoo
23-05-2025
- Business
- Yahoo
Klarna Reduces Workforce By 40%, Attributes Some Of Shrinkage To Its Investment In AI
Klarna shrunk its workforce by 40% over the last two years, CEO Sebastian Siemiatkowski told CNBC The reduced headcount was largely due to its investment in AI and natural attrition Now, which partnered with OpenAI in 2023, seems to be backpedeling a bit, announcing a hiring drive for human customer service agents Klarna CEO Sebastian Siemiatkowski said last week that the company has shrunk its workforce by 40% thanks to its investments in AI and natural attrition. "The truth is, the company has shrunk from about 5,000 to now almost 3,000 employees," Siemiatkowski told CNBC last week. "If you go to LinkedIn and look at the jobs, you'll see how we're shrinking." The Swedish fintech company has been an outspoken proponent of AI. In 2023, it announced a partnership with OpenAI, aimed at "level[ing] up the shopping experience." In February 2024, one month after introducing its OpenAI-powered AI assistant, Kalrna said it was doing the work of 700 full-time customer service agents and was on track to drive profits up $40 million that year. Don't Miss: Hasbro, MGM, and Skechers trust this AI marketing firm — 'Scrolling To UBI' — Deloitte's #1 fastest-growing software company allows users to earn money on their phones. About three months later, the company reported that 87% of its employees were using generative AI in their work each day. "We push everyone to test, test, test and explore," Seimiatkowski said at the time. "We're aimed at achieving a new level of employee empowerment, enhancing both our team's performance and the customer experience." According to Klarna's IPO prospectus, which was filed in March, its full-time employee count fell from 5,527 at the end of 2022 to 3,422 at the close of 2024. The company attributed the shrinkage to its efforts to increase its use of AI and natural attrition. "We have simply communicated to our employees that what we're going to do is we're gonna shrink, so we're going to stop hiring," Siemiatkowski told CNBC on May 14. "Natural attrition in a company like ours is 15-20% per year, so we shrink naturally 15-20% by people just leaving." Trending: Maker of the $60,000 foldable home has 3 factory buildings, 600+ houses built, and big plans to solve housing — However, Siemiatkowski might be pulling back on his AI investments a bit. In an interview with Bloomberg on May 8, he said that his pursuit of cost-cutting in customer service, which was largely fueled by investments and advancements in AI, had gone too far, and the company had begun working to hire a number of remote customer service agents. "From a brand perspective, a company perspective," Siemiatkowski told Bloomberg, "I just think it's so critical that you are clear to your customer that there will be always a human if you want." The hiring program is still in its early stages, but Siemiatkowski says he envisions it eventually replacing the few thousand customer service positions the agency currently outsources. Why the change of heart? "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." Read Next:Invest where it hurts — and help millions heal:. Image: Shutterstock UNLOCKED: 5 NEW TRADES EVERY WEEK. Click now to get top trade ideas daily, plus unlimited access to cutting-edge tools and strategies to gain an edge in the markets. Get the latest stock analysis from Benzinga? APPLE (AAPL): Free Stock Analysis Report TESLA (TSLA): Free Stock Analysis Report This article Klarna Reduces Workforce By 40%, Attributes Some Of Shrinkage To Its Investment In AI originally appeared on © 2025 Benzinga does not provide investment advice. All rights reserved. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
22-05-2025
- Business
- Yahoo
Klarna's AI replaced 700 workers. It now wants some of them back to improve customer service
Klarna CEO Sebastian Siemiatkowski has announced plans to beef up its human customer service team after artificial intelligence replaced 700 workers. The 'buy now, pay later' company's use of AI to cut jobs came after the company has seen its valuation drop to $6.7 billion, despite peaking at $45.6 billion in 2021. But now, Siemiatkowski has suggested that the AI job cuts have led to 'lower quality' customer service and is backpedaling by vowing to hire more humans. The executive recently announced at Klarna's Stockholm headquarters that a new hiring pilot is underway, in which customer service workers will be 'in an Uber type of setup,' per Bloomberg. These remote workers will eventually replace 'the few thousand human agents' that are outsourced by the firm. So far, only two customer service employees from this pilot have begun work. 'I just think it's so critical that you are clear to your customer that there will be always a human if you want,' said Siemiatkowski, a Swedish fintech entrepreneur who co-founded the company. The CEO reflected on Klarna's previous shift in focus from human agents and to AI. 'As cost unfortunately seems to have been a too predominant evaluation factor when organizing this, what you end up having is lower quality,' he said. Siemiatkowski continued: 'Really investing in the quality of the human support is the way of the future for us.' But this doesn't mean the company won't continue to use AI in other areas. Siemiatkowski mentioned that Klarna will use AI to improve efficiency in its software. In the meantime, the firm hopes to recruit people from rural areas, students and others to fill the new jobs. 'We also know there are tons of Klarna users that are very passionate about our company and would enjoy working for us,' Siemiatkowski added. The article has been amended to better reflect the timeline of changes at Klarna. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Express Tribune
22-05-2025
- Business
- Express Tribune
Klarna used AI avatar of CEO Sebastian Siemiatkowski to deliver Q1 earnings
Klarna, the buy-now-pay-later startup preparing for an initial public offering, took a bold step by using an AI-generated avatar of its CEO, Sebastian Siemiatkowski, to present its latest quarterly earnings. The AI version of Siemiatkowski appeared in a company video on YouTube, delivering the financial highlights. While the presentation was polished, subtle signs revealed the AI nature of the presenter. The avatar blinked less frequently than a human and the voice sync, although convincing, was not flawless. Its brown jacket also closely resembled one seen in a popular corporate photo of the real Siemiatkowski, though the shirt differed. Klarna credited its use of artificial intelligence for reaching 100 million users and achieving a fourth consecutive profitable quarter. The company's blog post highlighted AI-driven workforce optimisation, which led to a reduction of approximately 40 per cent in staff, boosting revenue per employee to nearly $1 million. Human CEO Siemiatkowski confirmed that employee numbers had decreased from about 5,000 to nearly 3,000. He also addressed AI's role in expanding Klarna on his X (formerly Twitter) page. I really try to be balanced and consistent. It's just two things can be true at the same time: 1. We drive huge efficiencies helped by AI, and that continues! 2. And we realize, in an AI world, the human customer connection/support will be valued even higher, and we must… — Sebastian Siemiatkowski (@klarnaseb) May 14, 2025 Siemiatkowski's move follows a growing trend of exploring AI's role in corporate leadership. Artisan, an AI sales startup, famously released a humorous video in April suggesting its CEO had been replaced by an AI, reflecting broader conversations about AI's potential to take on executive roles. Research published by Harvard Business Review last year found AI models, such as those based on GPT-4o, could outperform human CEOs in many decision-making tasks. However, the study also noted AI's limitations in managing unpredictable 'black swan' events, including economic crises like the COVID-19 pandemic. Despite this, experts believe future AI leaders could overcome these challenges. Klarna has yet to comment further on its AI avatar initiative.
