Klarna is a Swedish payments company set up in 2005 by three students. Using a mobile app, people can 'buy now pay later', with a popular 'pay in 3' instalment plan - where the first instalment is paid at the checkout. https://www.klarna.com/nz/
Klarna makes money by charging a fee to businesses for using its services and has about 90 million users world wide.
Alphinity shared the following information with us about how AI is working for Klarna - which quantifies the benefits:
"What is the return on investment for an AI chatbot for a company?
In just a month, Klarna’s AI assistant, which is powered by OpenAI, had 2.3 million conversations, two thirds of the company’s total customer service chats: equivalent to 700 full-time agents. Customer satisfaction with the chats was on par with humans. It was also more efficient in query resolution, on average resolving customer queries in about two minutes, versus 11 mins previously.
The chatbot is estimated to boost Klarna’s profits by $40m this year, yet the cost to Klarna of implementing it was minimal – at this point anyway.
One of the challenges of the AI space is that the current providers are only charging a nominal price for the service – at some point this will change. It will be interesting to see how addicted we all are to it when the true economic cost of AI starts to be levied."
