Klarna saved $60M with AI support - then brought humans back

Klarna's AI handled 2.3M monthly support chats. Resolution dropped from 11 minutes to 2 minutes. They saved $60 million.
Then quality suffered. Disputes got stuck. Refunds delayed. Customers hit walls on anything requiring judgment.
CEO admitted cost was the "predominant factor" - and it hurt.
Their fix wasn't abandoning AI. It was honest deployment: AI for routine questions, humans for judgment calls, instant handoff when customers ask.
The pattern every support team needs to see.
P.S. Running customer support? Reply with your biggest AI-vs-human decision - I read every one.
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