Thursday, 4 September 2025

Fintech firm’s AI adoption plan backfires as attempt to automation leaves engineers stuck with handling customer support calls

Klarna’s bold AI experiment has backfired, forcing engineers and marketers into customer support roles after its chatbot failed to handle rising complaints, Business Insider reported. Once claiming that AI could replace 700 agents, CEO Sebastian Siemiatkowski now admits cost-cutting hurt quality and vows to restore human support. The setback, echoing a wider 95% AI adoption failure rate noted by MIT, comes as Klarna prepares for a $14 billion IPO amid investor scrutiny.

from Tech and Gadgets-Tech-Economic Times https://ift.tt/MnBhcvm

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