Klarna’s AI Customer Support Meltdown Forces Engineers Into Call Centers Amid Soaring Loan Defaults

When AI Replaces Customer Support: Klarna’s Costly Lesson

Klarna, a major player in personal finance known for its "buy now, pay later" microloans, recently made headlines — and not for reasons they hoped. The Swedish company bet heavily on AI to handle its customer service, boasting that it hadn't hired a human agent in a year because AI was managing the workload of 700 full-time employees.

But the reality hit hard. By May 2025, Klarna had to urgently rehire customer support staff after its AI-driven system failed to meet expectations. The company didn’t just bring back former customer service employees; it even forced software engineers and marketers into call center roles to fill the gap. This scramble reveals a crucial fact: AI, even when advanced, often falls short in replacing human customer support.

Why Klarna’s AI Approach Fell Short

• Complexity of Customer Needs: AI agents struggle to handle nuanced or emotionally charged customer interactions, which are common in finance.
• High Default Rate Pressure: Klarna’s 17% loan default rate adds stress to customer support demands, requiring empathy and judgment that AI can’t fully replicate.
• Overestimating AI Efficiency: Despite claims, AI hasn’t reached a level where it can independently manage large-scale customer queries without significant human oversight.

This situation is a warning sign for companies rushing to replace humans with AI in customer support. A recent survey found that nearly 95% of corporate AI rollouts don’t deliver the financial results expected. Plus, less than half of executives feel confident about their company’s AI implementation success.

What Customer Support Professionals Should Take Away

If you work in customer support, Klarna’s experience underscores the ongoing value of human skills in your role. While AI tools can assist and speed up routine tasks, complex problem-solving and emotional intelligence remain areas where humans excel.

For those looking to stay relevant, learning how to work alongside AI or understanding AI tools can be a strong advantage. Resources like Complete AI Training’s courses for customer support roles offer practical skills on leveraging AI without losing the human touch.

Looking Ahead

Klarna’s move to force engineers and marketers into customer service roles highlights the difficulty in scaling back human expertise once it’s removed. Whether Klarna can rebuild its customer support team effectively remains to be seen, especially as it prepares for a high-stakes stock market debut.

For now, the message is clear: AI is a tool, not a replacement. Customer support jobs aren’t disappearing anytime soon, and the best teams will be those that blend technology with genuine human connection.

Want to sharpen your AI skills for customer support? Visit Complete AI Training’s latest AI courses and stay ahead of the curve.