Klarna has partnered with Google Cloud to utilize its complete AI stack, encompassing infrastructure, platforms, and models. This new “AI-first” collaboration aims to enhance innovation, creativity, and customer-focused products for Klarna’s over 114 million users worldwide.
The initial focus will be on “creative velocity,” utilizing Google’s latest generative media models, such as Veo 2 and Gemini 2.5 Flash Image (Nano Banana), to produce dynamic digital “lookbooks” accessible within the app. Furthermore, Klarna plans to enrich its library of over 200 million images by employing AI to regenerate and refine visuals, ensuring that shoppers engage with high-quality content in the app.
The partnership will also bolster security, as Klarna will leverage Google Cloud’s AI hardware and expertise to train and implement graph neural networks to fight fraud and money laundering.
David Sandström, CMO of Klarna, stated, “At Klarna, we’re not just adopting AI to streamline operations – we’re using it to rethink creativity itself. By merging Google Cloud’s top AI models with our unique consumer insights, we can create experiences that are smarter and more personalized. Initial results are promising: AI-driven creative concepts, from dynamic lookbooks to personalized campaigns, have increased time spent in our app by 15% and boosted orders by 50%. This illustrates that the fusion of creativity and AI can revolutionize shopping.”
Klarna has embraced AI enthusiastically; last year, CEO Sebastian Siemiatkowski mentioned that their assistant is performing tasks equivalent to 700 employees. The company reduced its workforce from 5,000 to 3,800 over the past year, with goals to lower it to 2,000, largely due to AI. Recently, Klarna even launched a hotline connecting consumers to an AI avatar of Siemiatkowski for feedback on product features and suggestions for improvements.