Klarna’s AI assistant: what the reversal actually reversed

In short: Klarna’s AI assistant was announced in 2024 as doing the work of 700 agents; in 2025 the company began hiring people back because service quality had suffered. The model was not the variable that changed. What changed was the design around it: what the assistant handled, what success was measured by, and how easily a customer could reach a person.^1,2

In February 2024 Klarna announced that its AI assistant, built with OpenAI, had handled 2.3 million conversations in its first month, two-thirds of its customer service chats. The company said the assistant was doing the work of about 700 full-time agents, had cut average resolution time from 11 minutes to under two, reduced repeat inquiries by 25 percent, and would drive an estimated $40 million improvement in profit that year.¹ It became one of the most cited examples of AI value in customer service.