How Klarna’s AI Chatbot Replaced 700 Agents and Boosted Profits by $40M

Background

In early 2024, Klarna faced a rapid rise in support ticket volume while striving to keep customer wait times low. With an average resolution time of 11 minutes, the company employed roughly 700 full-time agents just to handle inquiries about orders, refunds, and payment plans. Management saw an opportunity: could artificial intelligence automate this workflow and drive down costs without sacrificing quality?

The Challenges

Customer expectations are higher than ever, especially for “buy now, pay later” platforms. Slow replies risk cart abandonment and poor reviews. At the same time, agent headcount drove a large fixed cost. Klarna’s leadership team identified two main issues: lengthy ticket resolution times and a large, inflexible support staff budget. They needed a solution that tackled both quickly.

AI-Driven Ticketing Solution

Klarna partnered with an AI vendor to build a custom chatbot integrated into its existing ticketing system. The bot uses natural language processing to read incoming messages, match them to known issues, and supply accurate, branded responses. If a request fell outside predefined scenarios, it escalated to a human with context already collected, cutting manual triage time.

Results and Metrics

Within three months of launch, the AI chatbot handled over 80% of routine tickets. Average resolution time dropped from 11 minutes to just 2 minutes, improving customer satisfaction scores. More striking, Klarna reduced its support headcount by approximately 700 roles, freeing up $40 million annually to reinvest in R&D, marketing, and new market expansion.

Strategic Impact

Klarna funneled part of its cost savings into advanced A/B testing for marketing campaigns. One test on promotional email subject lines, powered by AI analysis, increased click-through rates by 18%. This created a positive feedback loop: efficiency gains funded growth, which improved revenue per user, making further customer acquisition more cost-effective.

Key Lessons for Growth

AI isn’t a magic bullet but a multiplier. Klarna’s approach balanced automation with clear escalation paths, ensuring no query went unresolved. They also prioritized reinvestment of savings into high-impact areas—marketing, R&D, and customer acquisition—which kept momentum high and competitors on their heels.

Conclusion

Klarna’s AI chatbot rollout shows that even mature fintech brands can still find dramatic efficiency gains. By replacing 700 full-time agents, slashing resolution times, and unlocking $40 million in profit, Klarna isn’t just improving operations—it’s funding its next era of growth.