Klarna, a buy-now-pay-later firm, has significantly reduced its marketing expenses by leveraging generative AI technologies. The company reported savings of $10 million annually by cutting agency costs by 25%. Klarna's CMO, David Sandström, highlighted that the use of AI tools such as Midjourney and DALL-E has saved $1.5 million on image production costs in the first quarter alone, reducing the image development timeline from six weeks to seven days. The adoption of AI has enabled Klarna to produce 1,000 in-house AI-generated images in just three months, covering creative concepts and quality. This shift has allowed the company to spend less on photographers, image banks, and marketing agencies. The financial benefits of this digital transformation, which includes a partnership with OpenAI, have also contributed to Klarna swinging into a quarterly profit. However, this move has also led to job destruction in the marketing sector.
Klarna CEO faces backlash for saying AI let marketing team 'half the size it was last year' do more work, saving millions https://t.co/tHsoZst3GM
Klarna CMO David Sandström Says Generative AI Enables The Buy Now, Pay Later Company’s Marketing Arm To Quickly Create Thousands Of On-Trend Images, Power More Campaigns, And Revolutionize Its Business. https://t.co/X7Lg1j8Xmd
The financial upside of adopting generative AI in marketing and sales is pushing companies to rapidly adopt it. Presented by @TMobileBusiness. https://t.co/JTwh9JsiRY
Buy-now-pay-later firm Klarna swings into quarterly profit after slashing costs https://t.co/Bp8wO8SHdm
"Using tools such as Midjourney and DALL-E saved the company $1.5m on image production costs in the first quarter, while slashing its image development timeline to seven days from six weeks." ◾️ Klarna Marketing Chief Says AI Is Helping It Become ‘Brutally Efficient’ @WSJ
Klarna’s CMO Says Taking The Plunge Into AI Is Paying Off https://t.co/MPxqytA461
Klarna is using AI to replace / automate its marketing images, cutting its budgets for stock photos, photographers, designers, etc. This is the immediate commercial effect of generative AI with no copyright protection: job destruction https://t.co/L123knisGO
#Klarna using #GenAI to cut #marketing costs by $10 mln annually https://t.co/9gAFsU4JXK #MarketingCosts #AIinBusiness #DigitalTransformation #ai #tech https://t.co/SyjULcChqq
Klarna Saves $10 Million Annually, Cuts Agency Costs by 25% Using Generative AI https://t.co/5NuFuH4143
I find these headlines a bit unbelievable? "Klarna Cuts Agency Expenses by 25% Using AI" "... which has a partnership with OpenAI, said it has reduced its external agency expenses by 25%. It is now using AI instead of agencies for translation, production, CRM, social work."
genAI will save us $10m in marketing this year. We’re spending less on photographers, image banks, and marketing agencies. The numbers are mind-blowing: - $6m less on producing images. - 1,000 in-house AI-produced images in 3 months. Includes the creative concept, quality… https://t.co/ioAhxkNS8I