Klarna’s AI Savings

Klarna has been louder than most other companies about using artificial intelligence to cut jobs and save money—part of a broader AI rebrand as the installment lender polishes itself up for a potential IPO. A fresh batch of financial details the company released today, alongside an AI-generated avatar of CEO Sebastian Siemiatkowski discussing the highlights, gave us some evidence that AI really is moving the needle for the firm.

Klarna’s sales and marketing expenses fell 16% to $161 million over the first nine months of the year compared with the same period in 2023, while customer service and operations expenses shrank 14% to $140 million, the company reported, which I’ve converted to dollars from Swedish kronor. Notably, it achieved those cost savings while generating 23% higher revenues.