Klarna replaces 700 human agents with ChatGPT as it prepares for a $20 billion IPO (04/2024)
The Swedish FinTech behemoth Klarna, renowned for pioneering the Buy Now, Pay Later (BNPL) model, is gearing up for a potential $20 billion US initial public offering (IPO) slated for as early as the third quarter of 2024. This move follows a tumultuous period for the BNPL firm, which seeks to transcend internal conflicts among stakeholders and a significant downturn in its valuation.
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With its sights set on the horizon, Klarna is harnessing the power of AI to orchestrate what could be the most significant IPO of 2024.
In 2021, Klarna soared to a pinnacle valuation of $45.6 billion, clinching the title of Europes most valuable startup. However, the tide turned swiftly as escalating interest rates prompted investors to retreat from lending platforms, precipitating a drastic decline in Klarnas valuation to $6.5 billion within a mere year.
Klarnas AI assistant, operating independently during its inaugural month, is capable of autonomously managing nearly 70% of customer requests, effectively performing tasks equivalent to those carried out by 700 full-time agents.
Following a successful 4-week pilot period, the Klarna AI Assistant, fueled by OpenAIs ChatGPT, has been launched globally.
Furthermore, notable insights and data from this deployment include:
- The AI assistant achieves comparable levels of customer satisfaction to human agents.
- Its precision in resolving tasks results in a significant 25% reduction in repeat inquiries.
- The AI assistant has had 2.3 million conversations, two-thirds of Klarnas customer service chats
- It is doing the equivalent work of 700 full-time agents
- It is on par with human agents in regard to customer satisfaction score
- Customers now resolve their errands in less than 2 mins compared to 11 mins previously
- Its available in 23 markets, 24/7 and communicates in more than 35 languages
- Its estimated to drive a $40 million USD in profit improvement to Klarna in 2024
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