By Vicky Sidler | Published 24 May 2025 at 12:00 GMT

If you’ve ever shouted “just let me speak to a human!” at a chatbot, you’ll love this update.

Swedish fintech giant Klarna, famous for its buy-now, pay-later service, is doing a complete U-turn on its AI customer service strategy. After replacing 700 human agents with chatbots last year, Klarna’s customer satisfaction dropped by 22%, according to a recent Forbes report.

Now, they’re back to hiring humans.

Why AI Failed to Deliver on Customer Service Promises:

Let’s start with the promise that flopped.

In early 2024, Klarna bet big on AI. They claimed their new chatbot could handle 75% of customer chats—about 2.3 million conversations—in over 35 languages. Sounds impressive, right?

But here’s the problem:

When real customers needed dispute resolution, refund help, or financial advice, the AI just couldn’t cut it. Klarna’s CEO Sebastian Siemiatkowski admitted the bot left “empathetic gaps” that no algorithm could fill.

Or, as one reviewer on X put it, the chatbot was basically just a filter to reach a real human anyway.

The Lesson for Small Business Owners:

If a $14.6 billion company like Klarna can get it wrong, small businesses need to tread carefully. AI tools are great for speed and scale, but when real money, real emotions, or real trust are on the line—humans still win.

Here’s Why This Should Matter to You:

Customers today expect two things:

1. Fast answers for simple questions.

2. Real human help for serious issues.

If you only offer one and not the other, you risk losing trust. Klarna learned this the hard way—after a full year of AI-only customer service and a very public backlash.

How to Balance AI With Human Support (Without Breaking the Bank):

As a StoryBrand Certified Guide and Duct Tape Marketing Strategist, I help small businesses build trust without overcomplicating their systems. Here’s how you can apply Klarna’s lesson before it costs you customers.

1. Audit Your Customer Feedback:

Start by listening. Check your reviews, support tickets, and social media mentions. Are people frustrated by automated replies or long wait times? If yes, you’ve got your first clue.

2. Keep Humans in the Loop:

Use AI to handle simple, repetitive questions, like “What are your business hours?” or “Where’s my order?” But make sure customers can easily reach a real person when the stakes get higher.

3. Promote the Human Touch:

Don’t hide your people.Make it clear on your website and social channels that real humans are ready to help. Customers love knowing they’re not alone in a maze of bots.

Why This Strategy Works:

Klarna isn’t ditching AI altogether—they’re building hybrid teams where bots handle the basics, and humans step in when it matters. That’s a smart move for any business, big or small.

Want to make sure your messaging builds trust, not frustration?

Grab my free 5-Minute Marketing Fix. It shows you how to craft one clear sentence that connects with real humans—without sounding robotic.

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Because as Klarna just proved, nobody wants to be stuck yelling at a chatbot to put them in touch with a human.