Klarna Early Gamble on ChatGPT and AI Tech Could Amount to $40 Million in Profit

Artificial intelligence has been a major player in transforming the retail landscape. A 2023 report by McKinsey found that in the retail and consumer package goods sectors, the prospective economic impact amounts to $400 billion to $600 billion a year. Additional analysis and estimates from McKinsey put generative AI contributing to $310 billion in additional value for the retail industry by bolstering performance in marketing and customer interactions.

As consumers look to more personalized shopping and companies look to enhance their customer experiences, Klarna has been at the forefront of integrating AI. The company was the first European company and fintech company to launch a ChatGPT plugin.

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A new case study published by OpenAI, the artificial intelligence research company that has transformed the space with ChatGPT, reflects on its relationship with Klarna.

OpenAI reports that the integration into Klarna’s platform for AI-assisted shopping experience can allow consumers to have a more seamless shopping experience. Customers using the ChatGPT plugin can have a conversation about an item they’re looking for and get suggestions from the software, with product links directing consumers to Klarna’s search and compare tool for price comparisons.

“We’re proud to partner with OpenAI on a number of initiatives that truly elevate the shopping experience for millions of people worldwide, while creating greater efficiencies for employees internally,” said Martin Elwin, senior director of engineering at Klarna.

Furthermore, Klarna’s AI shopping assistant, powered by OpenAI, enhances the shopping payment experience for the company’s 150 million consumers worldwide. The assistant, available in 35 markets 24/7, can manage tasks ranging from multilingual customer service in more than 35 languages to refunds and returns.

OpenAI’s case study found that within the first month of the technology going live, the AI has had 2.3 million conversations — which amounts to two-thirds of Klarna’s customer service chats. Customers can now resolve their errands in less than two minutes, compared to 11 minutes before; Klarna has seen a 25 percent drop in repeat inquiries. The report estimates that Klarna will see a boost of an estimated $40 million in profits for 2024.

Notably, the AI integration for Klarna is not just limited to customer experiences; the company has also adopted ChatGPT Enterprise for its employee’s usage worldwide. Klarna is now seeing a wide variety of usage cases such as building software and streamlining customer service. OpenAI reports that 75 percent of Klarna’s employees are using generative AI tools.

“We push everyone to test, test, test and explore,” said Sebastian Siemiatkowski, cofounder and chief executive officer of Klarna. “As Klarna continues to discover applications for OpenAI’s tech, there’s the potential to take the business to new heights. We’re aimed at achieving a new level of employee empowerment, enhancing both our team’s performance and the customer experience.”

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