The challenge for high-flying tech unicorns is how to keep growing in a belt-tightening environment, due to inflation and uncertain economic conditions. It’s even harder when the tech darlings don’t generate sufficient profits to maintain their market capitalization. The likelihood of investors continually funding companies amid high interest rates and economic headwinds dwindles, as there is too much risk. When tech layoffs started taking off in mid-2022, Klarna, a Sweden-brd fintech company in the buy-now-pay-later space, announced plans to lay off about 10% of its global workforce. Fast-forward to the ascension of artificial intelligence and a tech push to make companies leaner and more efficient, Klarna implemented an AI assistant that is now handling the workload equivalent to 700 full-time staff members, according to a recent statement by the company. Klarna partnered with OpenAI to improve customer service interactions. In just one month, the ChatGPT-inspired bot is managing two-thirds of customer service chats—2.3 million conversations—in 23 markets and 35 languages. The integration is expected to increase profits by $40 million in 2024, the company stated. The chatbot’s efficiency has resulted in fewer errors, a 25% decrease in repeat inquiries and reduced average conversation times from 11 to 2 minutes. “This AI breakthrough in customer interaction means superior experiences for our customers at better prices, more interesting challenges for our employees, and better returns for our investors,” said Sebastian Siemiatkowski, cofounder and CEO of Klarna. The company’s focus on AI technology aligns with its goal of becoming more agile and competitive in the market. The BNPL firm is considering an IPO earlier than expected, seeking a valuation of $20 billion and potentially listing in the third quarter of 2024, Bloomberg reported.
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