TLDRs;
- Klarna CEO warns AI could replace many knowledge-based banking and finance jobs globally.
- The fintech reduced staff by over half, using AI to boost efficiency selectively.
- Klarna expands UK operations while navigating AI regulations and operational transparency challenges.
- Experts highlight need for human oversight, especially under the EU AI Act coming in 2026.
Klarna CEO Sebastian Siemiatkowski has sounded the alarm on artificial intelligence, cautioning that the technology could eliminate a substantial number of knowledge-based jobs, particularly in banking, finance, and software sectors.
The Swedish fintech, widely recognized for its buy-now-pay-later services, has embraced AI to reduce costs and enhance operational efficiency. Over the past several years, Klarna’s workforce has been dramatically scaled down from 7,400 employees to roughly 3,000, following the slowdown of the fintech boom. Hiring was paused for more than a year, signaling a strategic pivot toward automation.
“I feel a lot of my tech bros are being slightly, you know, not to the point on this topic. I think there is a massive shift coming to knowledge work. And it’s not just in banking, it’s in society at large,” Klarna Group Plc Chief Executive Officer Sebastian Siemiatkowski said in a Thursday interview with Bloomberg Television.
Human Oversight Remains Essential
Despite its AI investments, Klarna has recognized the ongoing necessity for human judgment. In 2025, the company hired additional customer service staff to ensure clients can still interact with human agents, while AI is primarily deployed in underwriting and routine operations.
I know much more know than I did when I said this, and it was before Claude 4.5…
It is intense, I am just working night and day to make sure we do the most out of this at Klarna…
Fun but mind-blowing, things will accelerate insanely next 6 monthshttps://t.co/vfYTPqUuW9
— Sebastian Siemiatkowski (@klarnaseb) October 10, 2025
Reports indicate that AI currently handles two-thirds of customer chats, reducing average resolution times from 11 minutes to just 2 minutes. However, Klarna has not disclosed metrics on first-contact resolution, customer satisfaction, or complaints, raising questions about transparency and operational quality.
Siemiatkowski admitted that cost reduction had been “too predominant an evaluation factor,” prompting a partial return to human staffing for more complex customer issues. This move underscores the limitations of AI in handling nuanced or high-stakes decisions that require discretion, empathy, and judgment.
EU AI Act Spurs Compliance Demands
Financial institutions across Europe are preparing for the European Union’s AI Act, set to take effect in August 2026. The regulation classifies credit scoring and other consumer-facing AI applications as high risk, requiring human oversight, transparency, and clear risk management protocols. For fintechs like Klarna, this introduces both challenges and opportunities.
Software providers that offer AI-driven credit decisioning infrastructure with built-in safeguards, audit trails, and bias mitigation are likely to gain traction.
Companies will need solutions that meet compliance requirements while still harnessing AI’s efficiency benefits, creating a growing market for turnkey, regulatory-ready platforms.
Klarna Expands Despite Volatile Fintech Landscape
Amid automation and AI adoption, Klarna is also advancing its international footprint, particularly in the UK. The company has recovered significantly from the volatility of recent years, with its IPO in September 2025 delivering a valuation of $15.1 billion.
Sequoia Capital, Klarna’s largest investor, saw a $2.7 billion gain on its investment, highlighting continued investor confidence despite workforce reductions and operational restructuring.
Klarna’s journey illustrates the delicate balance fintechs must maintain: leveraging AI to cut costs and improve service speed while ensuring adequate human oversight and transparency. As AI continues to reshape the financial sector, Siemiatkowski’s warning signals a broader conversation on the societal and economic impact of automation.
