Sebastian Siemiatkowski, CEO of Klarna, is fully embracing the role of artificial intelligence within his company as it approaches its initial public offering. In a bold move demonstrating his confidence in AI, Klarna used a digital avatar of Siemiatkowski to present highlights from its latest quarterly earnings, a surprising revelation the company itself disclosed through a YouTube video.
At first glance, the use of the AI avatar might have passed unnoticed, with its realistic appearance and convincing delivery. However, upon closer inspection, there were a few subtle indications of computer-generated origins: the virtual CEO blinked less frequently compared to average human behavior, and the synchronization between speech and mouth movement was close to perfect but still had minor imperfections. Additionally, the avatar donned a brown jacket strikingly similar to that seen in a corporate headshot commonly associated with Siemiatkowski, although the shirt beneath the jacket was different.
Klarna cited artificial intelligence as instrumental in achieving substantial company milestones. Specifically highlighting AI as a key factor in passing the landmark of 100 million users, Klarna also credited its strategic use of AI technology with helping the company realize its fourth consecutive profitable quarter. The fintech giant explained that by leveraging its AI capabilities, it streamlined operations and significantly improved productivity. Klarna’s workforce has shrunk by roughly 40%, dropping from about 5,000 to approximately 3,000 employees, resulting in a noteworthy rise in revenue per employee, reaching nearly $1 million annually.
While Klarna’s playful experiment attracted attention, this event is not entirely unprecedented in the technology sector. Earlier in the year, another AI-focused startup, Artisan, jokingly released a promotional video that depicted the company’s CEO being humorously replaced by an AI-generated leader.
Yet, the premise of AI stepping into the shoes of human CEOs raises interesting questions beyond mere promotional stunts. It invites broader discussions about the roles CEOs traditionally perform, centered largely around strategic decision-making and accountability for those choices. Given that artificial intelligence models are increasingly capable of processing vast amounts of company data and learning from patterns of successful business strategies, the concept of AI executives does not seem as improbable as before.
A recent Harvard Business Review study, using advanced GPT-based models, found that AI systems could largely outperform human CEOs in making strategic corporate decisions. Nevertheless, the research also uncovered that AI faltered significantly in scenarios involving unprecedented crises, such as global surges during the COVID-19 pandemic, ultimately leading the simulated AI CEO to be dismissed by a virtual board.
Experts note, however, that such capabilities are still evolving, suggesting AI might someday master even the complexities of navigating extraordinary challenges. While Klarna did not provide immediate comment beyond its initial announcement, its use of an AI avatar for a key investor briefing underscores the increasing role and credibility of advanced digital technologies in shaping corporate landscapes.
