US EditionAfter Firing 700 Employees for AI, Swedish Company Admits Their Mistake and Plans to Rehire Humans. What Went Wrong?
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After firing 700 employees for AI, Swedish company admits their mistake and plans to rehire humans. What went wrong?
Swedish fintech company Klarna is reversing its decision to replace human employees with AI after facing declining service quality. After laying off around 700 workers and heavily investing in AI for customer service and marketing tasks, the company has acknowledged that cost-cutting was prioritized over quality. CEO Sebastian Siemiatkowski admitted the AI agents failed to meet expectations, prompting Klarna to begin rehiring human workers, parti
Klarna Retreats from AI-Only Customer Service Model Amid Quality Concerns
Klarna Group Plc, once hailed for its aggressive push to integrate artificial intelligence across customer support operations, is backtracking after CEO Sebastian Siemiatkowski admitted the strategy compromised service quality. Speaking at Klarna’s Stockholm headquarters, he acknowledged that prioritizing cost over experience led to “lower quality” customer interactions. The fintech giant had halted hiring for over a year to focus on AI developm…
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