Business Tech News: Klarna Reverses On AI, Says Customers Like ...
Here are five things in business tech news that happened this week and how they affect your business:
Klarna's AI Reversal
Klarna, the Swedish fintech firm, initially replaced much of its customer service staff with AI chatbots, claiming they performed the work of 700 employees. However, due to declining service quality and customer dissatisfaction, the company is now rehiring human agents. CEO Sebastian Siemiatkowski acknowledged that overemphasis on cost-cutting led to poorer service and emphasized the necessity of human interaction for customer satisfaction. The new hiring strategy involves remote, contract-based roles targeting students and rural workers, raising concerns about job stability. This shift highlights the limitations of AI in handling complex, empathetic customer interactions and underscores the enduring value of human support (Source: Gizmodo)
Klarna's response: "Klarna is not reversing on AI. In fact, we continue to invest heavily in AI, including rebuilding our tech stack to be AI-first. Our AI assistant now performs the work of over 800 full-time roles (not 700), and that number continues to grow. Klarna remains enthusiastic about AI. The pilot reflects a dual-track approach – combining scalable AI with high-quality human support – not a step back from automation. Klarna never eliminated human support. We still work with several thousand outsourced agents. The current pilot involves just two new agents in a flexible, remote setup – it’s an addition, not a rehire or reversal. Sebastian Siemiatkowski acknowledged that an overemphasis on cost—not AI itself—led to lower quality. The pilot is a proactive move to enhance customer experience, not a reaction to failure or dissatisfaction alone."
The Role of AI in Search Engines
Despite the growing popularity of AI chatbots like ChatGPT and Gemini, traditional search engines remain dominant. From April 2024 to March 2025, AI chatbots accounted for only 2.96% of global search traffic, while search engines like Google and Bing attracted 34 times more visits. ChatGPT leads the chatbot market with an 86.32% share, yet it still receives 26 times fewer daily visits than Google. Emerging platforms like Grok and DeepSeek are experiencing rapid growth, but search engines have bolstered their positions by integrating AI features such as AI Overviews and Search Generative Experience. Although search engines saw a slight 0.51% year-over-year decline in total visits, they continue to be the primary tool for online information retrieval (Source: NDTV Profit)
It’s true that AI chatbots are not yet taking over search this year. But watch as this number grows. AI chatbots are expected to power search in the next few years, impacting SEO.
The Future of AI in Business Reporting
According to tech writer Vala Afshar, AI is poised to revolutionize business reporting by surpassing traditional spreadsheets. AI tools offer real-time data analysis, predictive insights, and natural language processing, enabling users to interact with data more intuitively. They reduce manual errors and automate repetitive tasks, enhancing efficiency. AI-driven platforms can handle complex datasets and provide dynamic visualizations, facilitating better decision-making. As businesses seek more agile and intelligent reporting solutions, AI's capabilities position it as the future standard, gradually rendering conventional spreadsheets obsolete (Source: ZDNet)
AI reporting aims to streamline data analysis and reporting processes, providing a more efficient and accurate solution compared to traditional methods.
The Evolution of AI Smart Chatbot Assistants in Customer Service ...
According to a recent study, the evolution of AI smart chatbot assistants in customer service has been remarkable. The use of AI chatbots has transformed how businesses interact with customers, providing efficient and personalized services. The integration of AI technology has enhanced customer satisfaction and streamlined support processes. AI chatbots continue to evolve, offering more advanced features to meet the growing demands of businesses and consumers.
Wix's Integration with YouTube Shopping
Website provider Wix has integrated with YouTube Shopping to help small businesses tap into the growing social commerce market, projected to surpass $100 billion in the U.S. by 2026. This integration allows Wix merchants to sync their product catalogs directly to their YouTube channels, enabling features like product tagging in videos, live streams, and shorts. Products appear in a store tab on the merchant's YouTube profile, facilitating seamless shopping experiences. Wix manages backend processes, including inventory synchronization and checkout.
