Fintech company Klarna has revealed that substantial cost savings have been achieved through the use of generative AI (GenAI) technology. Klarna, an early adopter of GenAI, employs AI for various purposes, including running marketing campaigns and generating images. The company reports saving approximately$10 million annually through AI implementation.

In the first quarter, Klarna reduced its sales and marketing budget by 11%, with AI accounting for 37% of these cost savings. Utilising GenAI tools such as Midjourney, DALL-E, and Firefly for image generation, Klarna has notably reduced image production costs by$6 million. By leveraging AI, Klarna updates images on its app and website weekly, aligning with key retail events like Valentine's Day and summer sales.

According to Klarna's Chief Marketing Officer David Sandstrom, the company has eliminated the need for costly bespoke imagery traditionally associated with seasonal events. With GenAI, Klarna has streamlined its image development cycle, generating over 1,000 images in the first three months of 2024 and reducing the cycle time from six weeks to seven days.

Additionally, Klarna has realised further savings of$4 million by reducing spending on external marketing suppliers for translation, production, and social agencies. Furthermore, Klarna's partnership with OpenAI has resulted in an AI assistant for customer service, performing tasks equivalent to 700 full-time agents, showcasing the company's commitment to leveraging AI technology across various aspects of its operations.