Company Regrets Replacing All Those Pesky Human Workers With AI, Just Wants Its Humans Back

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Years after outsourcing marketing and customer service gigs to AI, the Swedish company Klarna is looking to hire its humans back.

Two years after partnering with OpenAI to automate marketing and customer service jobs, financial tech startup Klarna says it’s longing for human connection again.

Once gunning to be OpenAI CEO Sam Altman’s “favorite guinea pig,” Klarna is now plotting a big recruitment drive after its AI customer service agents couldn’t quite hack it.

The buy-now-pay-later company had previously shredded its marketing contracts in 2023, followed by its customer service team in 2024, which it proudly began replacing with AI agents. Now, the company says it imagines an “Uber-type of setup” to fill their ranks, with gig workers logging in remotely to argue with customers from the comfort of their own homes.

“From a brand perspective, a company perspective, I just think it’s so critical that you are clear to your customer that there will be always a human if you want,” admitted Sebastian Siemiatkowski, the Swedish fintech’s CEO.

That’s a pretty big shift from his comments in December of 2024, when he told Bloomberg he was “of the opinion that AI can already do all of the jobs that we, as humans, do.” A year before that, Klarna had stopped hiring humans altogether, reducing its workforce by 22 percent.

A few months after freezing new hires, Klarna bragged that it saved $10 million on marketing costs by outsourcing tasks like translation, art production, and data analysis to generative AI. It likewise claimed that its automated customer service agents could do the work of “700 full-time agents.”

So why the sudden about-face? As it turns out, leaving your already-frustrated customers to deal with a slop-spinning algorithm isn’t exactly best practice.

As Siemiatkowski told Bloomberg, “cost unfortunately seems to have been a too predominant evaluation factor when organizing this, what you end up having is lower quality.”

Klarna isn’t alone. Though executives in every industry, from news media to fast food, seem to think AI is ready for the hot seat — an attitude that’s more grounded in investor relations than an honest assessment of the tech — there are growing signs that robot chickens are coming home to roost.

In January of last year, a survey of over 1,400 business executives found that 66 percent were “ambivalent or outright dissatisfied with their organization’s progress on AI and GenAI so far.” The top issue corporate bosses cited was AI’s “lack of talent and skills.”

It’s a problem that evidently hasn’t improved over the year. Another survey recently found that over 55 percent of UK business leaders who rushed to replace jobs with AI now regret their decision.

It’s not hard to see why. An experiment carried out by researchers at Carnegie Mellon University stuffed a fake software company full of AI employees, and their performance was laughably bad — the best AI worker finished just 24 percent of the tasks assigned to it.

When it comes to the question of whether AI will take jobs, there seem to be as many answers as there are CEOs excited to save a buck.

There are gray areas, to be sure — AI is certainly helping corporations speed up low-wage outsourcing, and the tech is having a verifiable effect on labor market volatility — just don’t count on CEOs to have much patience as AI starts to chomp at their bottom line.

More on AI: Dystopia Intensifies as Startup Lets You Take Out a Micro-Loan to Get Fast Food

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Deranged Video Shows AI Job Recruiter Absolutely Losing It During an Interview

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Looking for work is already arduous enough — but for one job-seeker, the process was made worse by an insane AI recruiter.

Looking for work is already arduous enough — but for one job-seeker, the process became something out of a deleted “Black Mirror” scene when the AI recruiter she was paired with went veritably insane.

In a buckwild TikTok video, the job-seeker is seen suffering for nearly 30 seconds as the AI recruiter barked the term “vertical bar pilates” at her no fewer than 14 times, often slurring its words or mixing up letters along the way.

@its_ken04

It was genuinely so creepy and weird. Please stop trying to be lazy and have AI try to do YOUR JOB!!! It gave me the creeps so bad #fyp

♬ original sound – Its Ken 🤍

The incident — and the way it affected the young woman who endured it — is a startling example not only of where America’s abysmal labor market is at, but also of how ill-conceived this sort of AI “outsourcing” has become.

Though she looks nonplussed on her interview screen, the TikToker who goes by Ken told 404 Media that she was pretty perturbed by the incident, which occurred during her first (and only) interview with a Stretch Lab fitness studio in Ohio.

“I thought it was really creepy and I was freaked out,” the college-aged creator told the website. “I was very shocked, I didn’t do anything to make it glitch so this was very surprising.”

As 404 discovered, the glitchy recruiter-bot was hosted by a Y Combinator-backed startup called Apriora, which claims to help companies “hire 87 percent faster” and “interview 93 percent cheaper” because multiple candidates can be interviewed simultaneously.

In a 2024 interview with Forbes, Apriora cofounder Aaron Wang attested that job-seekers “prefer interviewing with AI in many cases, since knowing the interviewer is AI helps to reduce interviewing anxiety, allowing job seekers to perform at their best.”

That’s definitely not the case for Ken, who said she would “never go through this process again.”

“If another company wants me to talk to AI,” she told 404, “I will just decline.”

Commenters on her now-viral TikTok seem to agree as well.

“This is the rudest thing a company could ever do,” one user wrote. “We need to start withdrawing applications folks.”

Others still pointed out the elephant in the room: that recruiting used to be a skilled trade done by human workers.

“Lazy, greedy and arrogant,” another person commented. “AI interviews just show me they don’t care about workers from the get go. This used to be an actual human’s job.”

Though Apriora didn’t respond to 404‘s requests for comment, Ken, at least, has gotten the last word in the way only a Gen Z-er could.

“This was the first meeting [with the company] ever,” she told 404. “I guess I was supposed to earn my right to speak to a human.”

More on AI and labor: High Schools Training Students for Manual Labor as AI Looms Over College and Jobs

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