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Showing posts with label OpenAI partnership. Show all posts

Klarna Scales Back AI-Led Customer Service Strategy, Resumes Human Support Hiring

 

Klarna Group Plc, the Sweden-based fintech company, is reassessing its heavy reliance on artificial intelligence (AI) in customer service after admitting the approach led to a decline in service quality. CEO and co-founder Sebastian Siemiatkowski acknowledged that cost-cutting took precedence over customer experience during a company-wide AI push that replaced hundreds of human agents. 

Speaking at Klarna’s Stockholm headquarters, Siemiatkowski conceded, “As cost unfortunately seems to have been a too predominant evaluation factor when organizing this, what you end up having is lower quality.” The company had frozen hiring for over a year to scale its AI capabilities but now plans to recalibrate its customer service model. 

In a strategic shift, Klarna is restarting recruitment for customer support roles — a rare move that reflects the company’s need to restore the quality of human interaction. A new pilot program is underway that allows remote workers — including students and individuals in rural areas — to provide customer service on-demand in an “Uber-like setup.” Currently, two agents are part of the trial. “We also know there are tons of Klarna users that are very passionate about our company and would enjoy working for us,” Siemiatkowski said. 

He stressed the importance of giving customers the option to speak to a human, citing both brand and operational needs. Despite dialing back on AI-led customer support, Klarna is not walking away from AI altogether. The company is continuing to rebuild its tech stack with AI at the core, aiming to improve operational efficiency. It is also developing a digital financial assistant designed to help users secure better interest rates and insurance options. 

Klarna maintains a close relationship with OpenAI, a collaboration that began in 2023. “We wanted to be [OpenAI’s] favorite guinea pig,” Siemiatkowski noted, reinforcing the company’s long-term commitment to leveraging AI. Klarna’s course correction follows a turbulent financial period. After peaking at a $45.6 billion valuation in 2021, the company saw its value drop to $6.7 billion in 2022. It has since rebounded and aims to raise $1 billion via an IPO, targeting a valuation exceeding $15 billion — though IPO plans have been paused due to market volatility. 

The company’s 2024 announcement that AI was handling the workload of 700 human agents disrupted the call center industry, leading to a sharp drop in shares of Teleperformance SE, a major outsourcing firm. While Klarna is resuming hiring, its overall workforce is expected to shrink. “In a year’s time, we’ll probably be down to about 2,500 people from 3,000,” Siemiatkowski said, noting that attrition and further AI improvements will likely drive continued headcount reductions.

Italy Warns Media Giant GEDI Over AI Data Partnership with OpenAI

 


Italy's data protection regulator, Garante per la Protezione dei Dati Personali, has cautioned GEDI, a leading Italian media group, to comply with EU data protection laws in its collaboration with OpenAI. Reuters reports that the regulator highlighted the risk of non-compliance if personal data from GEDI's archives were shared under a proposed agreement with OpenAI, the creator of ChatGPT.

Details of the GEDI-OpenAI Collaboration

The partnership, formed in September, would allow OpenAI to use Italian-language content from GEDI’s publications, including La Repubblica and La Stampa, to enhance its chatbot services. The regulator warned that the use of personal and sensitive data stored in digital archives requires stringent safeguards. “The digital archives of newspapers contain the stories of millions of people, with information, details, and even extremely sensitive personal data that cannot be licensed without due care for use by third parties to train artificial intelligence,” stated the Garante.

GEDI clarified that its agreement with OpenAI does not involve selling personal data. “The project has not been launched,” said GEDI. “No editorial content has been made available to OpenAI at the moment and will not be until the reviews underway are completed.” The company expressed hope for ongoing constructive dialogue with the Italian data protection authority.

Regulatory Concerns and AI Legislation

The case highlights growing tension between European regulators and major AI developers. The EU’s Artificial Intelligence Act (EU AI Act), effective from August 2024, sets strict guidelines for AI systems based on their risk levels. While the Act aims to ensure transparency and data privacy, critics argue it imposes burdensome constraints that could hamper innovation.

AI industry leaders have voiced frustration over Europe's regulatory environment. OpenAI’s CEO, Sam Altman, warned in 2023 that the company might "cease operating" in the EU if compliance proved too difficult. In September 2024, executives from Meta and other firms cautioned in an open letter that the EU’s strict tech policies risk undermining Europe’s competitiveness in AI development.

Wider Implications of the Scrutiny

The Italian regulator’s scrutiny of the GEDI-OpenAI partnership reflects broader EU attitudes toward AI regulation. While ensuring compliance with GDPR, such interventions exemplify Europe's cautious approach to AI innovation. Critics argue that this could slow progress in a field where other regions, such as the US and China, are advancing more aggressively.