Klarna is hiring humans again as AI replacements offer "lower quality" output

Facepalm: As companies fall over each other replacing real employees with AI that doesn't require monthly wages, sick pay, maternity leave, etc., some are encountering a problem: AI performs a lot of jobs at a much lower quality than humans. AI-first firm Klarna has discovered this, and is now on a recruitment drive to add more flesh-and-blood staff to its ranks. Buy now, pay later/shopping service Klarna is one of the companies that have really been going all-in on AI. CEO Sebastian Siemiatkowski reached out to OpenAI boss Sam Altman in 2023, telling him "I want Klarna to be your favorite guinea pig," and the two firms have worked together ever since. Klarna has leaned heavily into AI since then; Siemiatkowski announced a freeze on hiring in December 2023 as it looked to pursue AI alternatives to humans. He also talked about cutting the workforce by almost half, from 3,800 to 2,000 – it had been around 5,000 in 2023 – though Siemiatkowski framed this as "natural attrition." The CEO ... Read full article.