Klarna Rehires Humans AI Quality Issues
A Swedish financial technology company that previously cut jobs in favor of artificial intelligence is now seeking to hire human staff again. The company had made headlines when it reduced its workforce and increased its use of AI technology.
Two years ago, the firm halted recruitment and focused on automation, particularly integrating AI into its customer service operations. The company stated its AI systems could perform tasks equivalent to hundreds of customer service agents and reported financial savings from using AI for different functions.
However, the company has now indicated that the quality of work performed by the AI systems did not meet expectations. An excessive focus on cost reduction through automation reportedly harmed the customer experience. The company has noted the importance of customers having the option to interact with a human.
As a result, the firm plans to launch a new hiring effort to bring back human workers. The focus will be on customer-facing positions where human skills such as empathy and judgment are crucial. The company is also exploring a new model for remote hiring.
The total number of employees at the company decreased significantly from over 5,500 in 2022 to 3,400 by late 2024. The company is widely known for offering services that allow consumers to purchase goods immediately and pay for them at a later date or in installments.
