Stockholm, May 28, 2024 – Fintech pioneer Klarna has announced significant cost savings by integrating generative AI into its marketing operations. The company revealed on Tuesday that AI-driven strategies are expected to save approximately $10 million annually, with substantial reductions in marketing and sales expenses.
In the first quarter of 2024, Klarna reduced its sales and marketing budget by 11%, attributing 37% of these savings to AI. The use of generative AI tools like Midjourney, DALL-E, and Firefly for image generation has played a pivotal role, cutting image production costs by $6 million. These tools enable the swift creation of tailored images for various retail events, updating Klarna’s app and website weekly for occasions such as Valentine’s Day, Mother’s Day, and summer sales.
David Sandström, Klarna’s Chief Marketing Officer, emphasized the transformative impact of AI on their marketing approach. “Traditionally, catering to these occasions with bespoke imagery would have been very costly, but with AI, that is no longer an issue,” Sandström stated. “We have essentially removed the need for stock imagery.”
In the first three months of 2024, Klarna generated over 1,000 images using generative AI, significantly reducing the image development cycle from six weeks to just seven days. This efficiency has enabled the company to increase the frequency and number of its marketing campaigns without additional costs.
Additionally, Klarna has achieved $4 million in savings by cutting expenditures on external marketing suppliers for translation, production, and social media agencies. This shift to in-house capabilities has reduced their reliance on third-party agencies by 25%.
Klarna’s partnership with OpenAI has also proven beneficial for customer service. The AI assistant developed through this collaboration is performing the equivalent work of 700 full-time agents, allowing Klarna to streamline its customer service operations without reducing internal staff.
Sandström highlighted the creative freedom and efficiency AI brings to their marketing team. “AI-generated images allow employees to conceptualize and visualize ideas without the limitations of traditional photography or design,” he explained. “They can experiment with different styles, elements, and scenarios to create unique visuals that may have been difficult or time-consuming to produce manually.”
Despite the reduction in external agency use, Sandström noted that there has been no corresponding increase in internal hires. Instead, AI has enabled existing employees to work more efficiently, leading to a pause in active recruitment efforts, with most open roles being in engineering.
Klarna’s commitment to AI is evident, with 87% of its employees reportedly using AI systems daily. The company plans to continue exploring and investing in AI technologies to enhance various aspects of its operations.
“We are committed to leveraging AI to drive innovation and efficiency across the organization,” Sandström affirmed. “The positive impact on marketing is just one example of how AI can transform traditional business processes, allowing for more agility, creativity, and customer-centric strategies.”
As Klarna continues to integrate AI into its business model, it aims to deliver exceptional value to its customers and retail partners while maintaining a competitive edge in the fintech industry.
