This technology firm has ceased the recruitment of human workers, as the CEO asserts that artificial intelligence (AI) can accomplish nearly all functions typically performed by human staff in the workplace.
Klarna, a well-known fintech organization, is garnering attention following remarks from its CEO, Sebastian Siemiatkowski, who stated that AI is now able to execute almost all tasks that were once the responsibility of human employees. Additionally, IBM has indicated that AI could potentially displace 30 percent of jobs within the next five years.
In Summary
The CEO of a well-known technology firm asserts that artificial intelligence (AI) can now execute nearly all functions typically performed by human workers. Approximately a year ago, the company ceased hiring new personnel, resulting in a gradual decrease in its workforce. Additionally, IBM has previously indicated that AI could potentially replace 30 percent of jobs within the next five years. Klarna, a prominent fintech organization recognized for its “buy now, pay later” offerings, is in the spotlight following CEO Sebastian Siemiatkowski’s assertion that AI has reached a level of capability that allows it to undertake almost all tasks traditionally assigned to human staff.
This assertion is significant and prompts further contemplation regarding the future landscape of employment for humans. In a discussion with Bloomberg TV, Siemiatkowski indicated that AI has progressed to a stage where it can effectively oversee numerous roles within an organization.
Siemiatkowski disclosed that Klarna ceased hiring new personnel approximately one year ago, resulting in a gradual decrease in its workforce. The organization, which once employed 4,500 individuals, now has a total of 3,500. According to the CEO, this reduction occurred organically, attributed to the 20 percent annual attrition rate typical in technology companies. Rather than filling vacancies, Klarna chose to allow its workforce to diminish, thereby enhancing its focus on automation and artificial intelligence.
“We experience a natural attrition rate like any tech firm. Employees tend to remain for around five years, leading to an annual turnover of 20 percent. By refraining from hiring, we are effectively reducing our numbers,” he explained.
Despite this transition, Siemiatkowski indicated that the salaries of current employees would not be adversely impacted. In fact, he noted that as Klarna’s overall salary expenditures decline due to a smaller workforce, the resulting savings could be redirected to increase compensation for those who remain.
This development occurs amidst escalating global conversations regarding the influence of AI on employment. A 2023 report from McKinsey & Company forecasted that as AI technology advances, millions of workers may need to shift into new positions by 2030. Klarna’s choice to refrain from actively recruiting new employees exemplifies how AI is already transforming the contemporary workplace.
Although Klarna’s website continues to display certain job vacancies, a company representative informed Business Insider that they are not expanding their workforce but are only filling critical positions, particularly in engineering. This indicates that technology firms are progressively modifying their workforce strategies as they integrate AI into their operations over time.
Furthermore, just last year, IBM, an American technology corporation, also expressed its endorsement of AI and automation. The company’s CEO, Arvind Krishna, stated in an interview with Bloomberg that certain jobs could be supplanted by AI within the next five years. He also suggested that the Human Resources (HR) department could be one of the areas potentially affected by AI advancements.
