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Klarna changes its AI tune and again recruits humans for customer service

Over a year after claiming that its AI chatbot could do the work of 700 representatives, Klarna is turning back to people to help with customer service work.

Published May 9, 2025

It’s a drastic change from a year ago, when the firm went all in on AI, laid off workers and paused hiring. The shift highlights the need for the option to speak to a human in customer service — and to use AI as a supplement, not a replacement, for staff, according to Julie Geller, principal research director at Info-Tech Research Group.

“The key takeaway is that AI should augment human agents — not replace them,” Geller said in an email. “Automate the routine to drive efficiency, but always ensure customers have a clear, easy path to a human, especially when emotions or complexity come into play.”

Klarna CEO Sebastian Siemiatkowski said just as much in an interview with Bloomberg Thursday.

“From a brand perspective, a company perspective … I just think it’s so critical that you are clear to your customer that there will be always a human if you want,” Siemiatkowski said. 

Klarna is now recruiting workers for what Siemiatkowski referred to as an Uber-type customer service setup. Starting with a pilot program, the firm will offer customer service talent “competitive pay and full flexibility to attract the best,” with staff able to work remotely, according to Nordstrom.

“AI solves the easy stuff — our experts handle the moments that matter,” Nordstrom said. “That’s why we’re running this pilot, bringing in highly educated students, professionals and entrepreneurs for a new kind of role that blends frontline excellence with real-time product feedback.” 

One of the goals is to replace the thousands of workers that Klarna currently outsources, Siemiatkowski told Bloomberg. 

Back in February 2024, Klarna touted impressive figures: The AI assistant had taken over two-thirds of customer service chats — 2.3 million in total — in its first month. Its handling of customer service chats resulted in average resolution times of less than 2 minutes. 

The AI still plays a crucial role, according to Nordstrom. The chatbot still handles two-thirds of all customer inquiries. Since launch, response times have improved by 82%, and Klarna has seen a 25% drop in repeat issues. 

“But in a world of automation, nothing is more valuable than a truly great human interaction. That’s why we’re doubling down — investing in the human side of service: empathy, expertise, and real conversations,” Nordstrom said.

Like many companies, Klarna had turned to AI as a form of cost-cutting, Siemiatkowski told Bloomberg. 

“Initially, Klarna embraced AI with an eye toward cost savings and efficiency — but perhaps underestimated the tradeoff,” Geller said. “As customers increasingly voiced frustration over impersonal interactions and limited access to human help, it became clear this approach risked undermining the very experience they aimed to improve. That kind of friction doesn’t just erode satisfaction; it carries real financial and reputational consequences.”

Siemiatkowski acknowledged that Klarna had gone too far in the wrong direction with AI.

“As 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.”

The firm’s shifting customer service strategy is perhaps unsurprising considering consumers’ overall frustrations with chatbots and the technology’s shortcomings.

A Verint survey released last year found more than two-thirds customers have had a bad chatbot experience, and in that group, the top complaint was inability to answer questions.

Customers still want to talk to humans, especially for complex or sensitive issues. A Five9 survey from March found that 86% of customers believe empathy and human connection are more important than a quick response in providing excellent customer experience.

AI can mimic emotional intelligence in simple, routine interactions, Geller said.

“But when situations get more complex, subtle gaps can start to show,” she said. “AI can also misread customer intent, leading to irrelevant — or worse, misleading — responses that frustrate people instead of solving their issue. And when companies lean too heavily on automation, they risk building rigid systems that make customers feel trapped, with no clear way to reach a human when it matters most.”

While Klarna has been an early, vocal adopter of AI, Geller is encouraged to see Klarna’s leadership course-correct from its earlier all-or-nothing approach.

“They recognized that trust and satisfaction aren’t purely transactional — they’re emotional,” she said. “And to sustain loyalty, especially in complex or sensitive moments, customers still expect, and deserve, the option of a human touch.”