Sebastian Siemiatkowski, the CEO of Klarna, has discussed the impact of Artificial Intelligence on his ability to transform ideas into reality. In a recent podcast, he explained how AI-driven “vibe coding” enables him to create functional prototypes in just 20 minutes, a process that previously required weeks of engineering efforts. Over recent years, Klarna has increasingly relied on AI, with sophisticated models taking over roles once fulfilled by hundreds of employees. Notably, in 2024, Klarna’s AI customer service systems replaced the workload of approximately 700 staff members. Beyond enhancing customer service, Siemiatkowski has actively utilized AI to accelerate innovation within the company. He attributed this advancement to his use of Cursor, an AI-based coding tool.
Cursor leverages large language models (LLMs) to facilitate “vibe coding,” a term introduced by OpenAI co-founder Andrej Karpathy, which allows for the rapid generation of operational code. Siemiatkowski stated in the Sourcery podcast, “I was a business person, and then I just started exploring Cursor. Now I sit with a computer, describe what I want, and within 20 minutes AI gives me a prototype. Earlier, I’d have to wait weeks for engineers to build it.” He emphasized that this change not only conserves his own time but also benefits his product teams. Instead of presenting incomplete ideas to engineers, he can now conduct tests independently.
“Rather than disturbing my poor engineers and product people with what are half good ideas and half bad ideas, now I come back with something that works. Then we can have a real discussion about improving it,” he remarked. While AI has become crucial in Klarna’s operations, Siemiatkowski has acknowledged the challenges it introduces. Earlier this year, he cautioned that swift advancements in AI could lead to job losses in white-collar industries, potentially resulting in a recession. He predicts a profound impact of AI on the job market, especially affecting positions previously thought to be secure from automation.
Nevertheless, Klarna remains committed to human talent, emphasizing personal connections in customer service even as AI managed over 2.3 million queries last year. The company is reportedly working on a new support model similar to ride-hailing services, allowing customers to connect with remote human agents akin to booking an Uber driver. Interestingly, Siemiatkowski suggested that direct human interaction might soon be viewed as a premium or “VIP” service, catering to clients seeking a personalized experience beyond AI’s capabilities. By merging the efficiency of AI with the creativity and insight of human teams, Klarna aims to lead the way in leveraging technology to transform both work and customer experiences.
For Siemiatkowski, AI-enhanced vibe coding represents not just a tool, but a novel approach to thinking, creating, and innovating.