Overview
Buy‑now‑pay‑later giant Klarna rolled out an AI assistant for customer service in 2023 and said it was doing the work of 700 employees. However, by 2025 the company quietly rehired staff and even moved engineers into call‑centre roles after the AI proved incapable of handling complex complaints. CX Dive reported that Klarna is now re‑introducing human agents and offering flexible ‘Uber‑type’ customer service jobs, emphasising that customers must be able to speak to a human. Another report noted that the company’s ambitious AI bet "failed," acknowledging that AI can augment but not replace human empathy.
What Went Wrong
Klarna over‑promised the capabilities of its AI customer‑service assistant. The system could handle routine questions but faltered with nuanced financial issues, leading to frustrated customers.
How It Was Fixed
Klarna shifted its strategy to balance AI with human support. It rehired customer‑service staff, repositioned engineers to help in call centres, and emphasised that AI should augment rather than replace human agents. The company now ensures customers always have the option to speak with a person.