Klarna's AI CEO Avatar: A Bold Step Towards Automation

Klarna has taken a significant leap in integrating artificial intelligence into its corporate communications.

CEO Sebastian Siemiatkowski introduced an AI-generated avatar of himself to present the company's Q1 2025 earnings, marking a pioneering move in executive-level automation.

This 83-second video, featuring a digital replica of Siemiatkowski, was part of Klarna's broader strategy to position itself as an AI-driven enterprise.

Photo Credit: Klarna

The company has previously implemented AI-powered customer service agents, claiming they perform the work of 700 full-time employees. Since 2022, Klarna has reduced its workforce by 40% through layoffs and voluntary exits.

Financially, Klarna reported a 13% year-over-year revenue increase and reached 100 million active users.

However, net losses more than doubled from $47 million in Q1 2024 to $99 million in Q1 2025, attributed to depreciation, share-based payments, and restructuring costs, while Klarna also started rehiring human employees to tackle the low-quality services issue.

Credit losses also rose by 17%, driven by the expansion of Pay Later and Fair Financing offerings.

The use of an AI avatar for earnings presentations is a novel approach that may set a precedent for other companies exploring automation in executive functions.

While this move underscores Klarna's commitment to AI integration, it also raises questions about the future role of human leadership in corporate communications.