Dive summary:
- Klarna’s use of artificial intelligence (AI) was one of the ways the company was able to reduce its sales and marketing spend by 11% in the first quarter of 2024, despite running more campaigns and creating more marketing materials. according to a press release.
- The Stockholm-based financial technology company has reduced its vendor marketing spend by 25%. For image generation and editing, the company saved $1.5 million in the first quarter by using generative AI tools such as Midjourney, DALL-E and Firefly, reducing the development cycle of images from 6 weeks to 7 days.
- Klarna’s cost reduction and increased efficiency exemplify the goals many marketers have sought by adopting generative AI into their operations. The company has a close partnership with industry leader OpenAI.
Dive overview:
Klarna — which launched a personalized shopping flow powered by artificial intelligence Last year, the company saw significant positive results using this trendy technology in its marketing functions. More than a third (37%) of the company’s first-quarter marketing savings, or approximately $10 million on an annualized basis, were attributable to AI.
“AI helps us become more efficient, faster and more responsive to what matters to our customers, which leads to a much better experience,” CMO David Sandström said in the press release.
Klarna reduced its spend on external translation, production, CRM and social agencies, saving $4 million, and saved a further $6 million in image production costs despite running more campaigns and creating more images. The company generated more than 1,000 images in the first quarter, and AI helped it streamline updates to its app and website around commercial events like Valentine’s Day and Christmas. mothers. AI has removed the need for stock images, Sandström said.
Klarna also uses generative AI for 80% of all copywriting, using an internal AI tool called Copy Assistant. There are a dozen AI-driven projects within the company’s marketing department and more than 100 across the organization. Nearly nine in 10 employees (87%) use generative AI in their daily work.
The company is among a growing number of marketers and advertising platforms looking to adopt generative AI into their operations and products, from Meta And Google has Coca-Cola And Estee Lauder. Like Klarna’s successes, Ally Financial said last year that a large-scale proprietary language model helped make your marketing operations more effective.
Klarna boasts of a close partnership with OpenAI, with the tech firm’s COO Brad Lightcap noting that the fintech firm is “at the forefront» of practical AI adoption. With over 37 million users in the US, Klarna is reportedly preparing a initial public offering.
