Klarna is utilizing generative artificial intelligence to significantly improve its profit margins, with an expected $40 million increase this year. The AI technology handles two-thirds of customer service chats, reducing resolution times by 80%. This efficiency equates to the workload of 700 full-time employees. Similarly, other BNPL firms like Afterpay and PayPal are implementing AI to personalize shopping experiences and increase revenues. These strategic moves are helping BNPL companies to enhance customer experience and manage operational costs effectively amidst economic uncertainties. The adoption of AI is indicative of a broader trend in FinTech, where digital innovation is pivotal for sustaining and increasing profitability.
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