The $40 Million AI Lesson: Why Employees Still Matter
The opinions expressed in this article are my own and do not represent my employer. This article is not intended as professional HR advice.
In 2024, Klarna, a Swedish financial technology company that provides digital banking, announced that its AI assistant was doing the equivalent work of 700 full-time customer-service agents. It handled millions of conversations, shortened response times, and was projected to improve profits by $40 million.
It looked like the future had arrived. Then came the plot twist.
In 2025 (one year later), Klarna’s CEO acknowledged that an intense focus on cost had contributed to lower-quality service. The company began recruiting human customer-service representatives again so customers could always reach a person when needed.
The lesson is not that AI failed. Klarna continues to use it successfully. The lesson is that efficiency and engagement are not interchangeable—and technology cannot replace every element of human judgment, empathy, and experience.
A Different Approach: Invest in People
IKEA took another path. As its AI assistant began handling routine customer questions, the company retrained 8,500 call-center employees in interior design, digital sales, relationship building, and complex problem-solving.
Instead of treating automation only as a way to reduce staff, IKEA used it to move employees into work requiring greater creativity, judgment, and human connection. Read IKEA’s account of the initiative.
The contrast is instructive: Klarna discovered the risks of allowing cost reduction to overshadow service quality, while IKEA paired automation with employee development. The strongest AI strategy may be the one that makes employees more valuable—not less necessary.
If AI could perform half of your team’s routine work tomorrow, would your organization invest the savings in developing its employees—or decide it needs fewer of them?
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