IKEA and Klarna Diverge on AI Customer Service Strategies
IKEA and Klarna implemented AI chatbots for customer service, with IKEA retraining staff for design services while Klarna initially cut headcount before reversing course.
Retail giant IKEA and fintech firm Klarna adopted AI chatbots to manage customer service, but utilized the resulting labor surplus in opposite ways. IKEA used its chatbot to handle nearly half of its service volume, saving more than 13 million euros. Instead of layoffs, the company retrained 8,500 employees to provide premium interior design services, a move that generated over 1.3 billion euros in revenue.
Klarna initially used AI to replace the workload of 700 full-time agents and halted hiring to reduce headcount through natural attrition. By 2025, however, the company reversed this strategy and resumed hiring. CEO Sebastian Siemiatkowski determined that prioritizing cost over human support resulted in lower quality service, leading to a shift back toward investing in human capital.
