Klarna CEO Sebastian Siemiatkowski recently warned that AI could very well trigger a global recession.
Companies—including Klarna—are rapidly replacing workers with chatbots and AI assistants, raising concerns about widespread job displacement.
Siemiatkowski shared his increasingly pessimistic outlook during a recent podcast appearance, fueling fears that these shifts may have serious consequences for the global economy.
“My suspicion…is that there will be an implication for white-collar jobs,” Siemiatkowski said on the Times Tech Podcast. “And when that happens, that usually leads to at least a recession in the short term. And I think, unfortunately, I don’t see how we could avoid that with what’s happening from a technology perspective,”
Klarna led the AI bot workforce takeover
Last year, Klarna laid off 700 employees, stating that an AI assistant could replace them all.
At that time, it said it was one of the first companies to integrate the tech into a plug-in for shopping. According to Fast Company, the “buy now, pay later” company said its new virtual assistant is already streamlining operations.
New data shows the investment is paying off: AI now handles the vast majority of customer service interactions without lowering satisfaction ratings.
In fact, Klarna claims customer satisfaction with its AI chatbot matches that of human representatives. The use of AI tech was projected to help the company rake in an additional 40 million in profits in 2024.
CEO issues stark warning
Despite first professing that AI drove increased profitability for Klarna, the CEO now warns that AI has serious potential to disrupt the economy negatively.
The company reported widening credit losses, which rose 17% to $136 million last year.
Klarna CEO Sebastian Siemiatkowski attributed recent losses to taking on more customers, which led to a slight rise in defaults.
However, because Klarna users typically owe around £100, much less than the average credit card debt, customers are more likely to repay their loans.
Siemiatkowski said Klarna’s business is less sensitive to economic shifts than big banks with mortgage portfolios, noting that major credit losses would require widespread job losses.
While he hasn’t seen signs of a recession yet, falling consumer confidence could affect spending.
Interestingly, Siemiatkowski’s stance on AI and hiring has shifted. In May, he told Bloomberg Klarna was ramping up recruitment, contradicting earlier comments about cutting staff due to AI automation.
Redditors tear into Klarna’s CEO
On Reddit, many discussed the news of the CEO’s AI workforce takeover warning.
“The guy who jumped on the AI train so hard he fired a shitload of staff way prematurely and had to snivelingly hire them back is saying AI is coming for our jobs?” one user wrote. “You’ll forgive my disbelief. AI isn’t coming for our jobs. [Expletive] like this guy are.”
They blamed greedy CEOs for reducing employees without taking a cautious approach.
“LOL ‘AI’ isn’t coming for anyone’s job,” another said. “Corporate CEOs on the other hand wanting to reduce payroll costs? Ya they are definitely coming for people’s jobs & just using the “AI” excuse to do it.”
“Let me correct the headline: Klarna CEO Warns AI Layoffs Because Management Thinks It Can Replace Employees,” a third said.
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