Meanwhile, Klarna, that other Swedish fintech behemoth, celebrated its fourth quarter in a row of profitability. The company attributes this remarkable accomplishment to its groundbreaking application of artificial intelligence (AI) throughout the enterprise. The company, famous for its buy-now-pay-later business, has made deep cuts to its employee ranks. It has already cut its workforce from about 5,000 employees to just under 3,000 jobs. Buy now, pay later provider Klarna is laying the groundwork for what could be a $50 billion-dollar IPO. Along with that, it’s further underscoring just how much AI is powering its growth trajectory.
On Monday, Klarna announced its most recent quarterly earnings. The company touted a stunning revenue per employee, which has ballooned to almost $1 million. This remarkable number is a testament to the company’s long tradition of efficiency and innovation. To achieve this milestone, AI played an essential role, according to Klarna’s CEO Sebastian Siemiatkowski. He noted that the company got to that 100 million users largely because of those AI-oriented strategies.
Klarna has leaned into AI, both in its corporate structure and its press releases. The company even used an AI avatar of Siemiatkowski to deliver other highlights from its quarterly earnings. Notably, this virtual representation exhibited a unique characteristic: it did not blink as frequently as most humans do, demonstrating the cutting-edge technology at Klarna’s disposal.
In a recent interview with CNBC, Siemiatkowski elaborated on the company’s workforce reduction, emphasizing that “the company has shrunk from about 5,000 to now almost 3,000 employees.” This move dovetails with Klarna’s larger global effort to increase productivity through cuts while continuing the company on a profitable trajectory.
Klarna’s company blog recently featured a piece celebrating the state of the company’s AI projects. These strides have drastically increased operational efficiency and user engagement. Siemiatkowski fully supports the notion that Klarna is, at its heart, an AI company. He is convinced that the key to their business model lies in advanced technology.
Siemiatkowski recognized the potential for technological advances and efficiency that AI will provide. Yet at all times, he never lost his sense of humor about a future with AI in executive positions. He humorously acknowledged concerns about AI potentially replacing CEOs, signaling a balance between embracing innovation and recognizing human oversight.
Klarna, meanwhile, is forging ahead with its own plans for a public offering. To that end, stakeholders are watching to see how the company’s renewed strategic priority towards AI translates into financial results and market competitiveness.