June 2, 2024

Klarna CEO Faces Backlash Over AI Cost-Cutting Measures 😠

Klarna’s CEO, Sebastian Siemiatkowski, sparked a heated debate on social media after revealing how the company saved $10 million by using AI to replace human employees for marketing tasks. In his tweet, Siemiatkowski highlighted that the fintech firm reduced its in-house marketing team by half while increasing output, thanks to generative AI tools like Midjourney, OpenAI’s DALL-E, and Adobe’s Firefly. He also noted that Klarna cut external marketing agency expenses by 25% and eliminated the need for stock imagery.

Siemiatkowski’s comments quickly drew criticism, with many social media users labeling his remarks as “ghoulish” and expressing concerns about the impact of AI on jobs in the creative and marketing industries. Critics argued that boasting about firing employees was in poor taste, especially considering Klarna’s recent layoffs of roughly 700 workers in May 2022. Despite the backlash, some commentators saw potential in AI, suggesting it could enable the creative industries to enhance their capabilities. A Klarna spokesperson defended the CEO’s post, emphasizing the importance of discussing AI’s real-world impacts.

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