AI Helps Klarna Cut Marketing Spend, Increase Campaigns
Swedish buy-now-pay-later company, Klarna, credits AI for significantly reducing its marketing and sales costs, resulting in an 11% decrease in spending during the first quarter of 2024.
Utilizing generative AI tools like Midjourney and DALL-E, Klarna cut image production costs by $1.5 million and shortened the image development timeline from six weeks to seven days. Additionally, the company reduced spending on external marketing suppliers by 25% for tasks like social media and translation.
Key quote: “... I don’t believe in all of these arguments that craft is going away because AI is going to do everything. The human touch is still absolutely amazing. And the human ability to understand different perspectives and combine different kinds of thoughts into one.” David Sandstrom, CMO, Klarna