The finance startup Klarna, which was among the first to employ generative artificial intelligence (GenAI), revealed that it is saving about $10 million annually by using AI to handle marketing campaign management and image creation.
One of the first companies to use generative artificial intelligence (GenAI), the fintech company Klarna, announced on Tuesday that it is saving roughly $10 million a year by leveraging AI for tasks like creating pictures and managing marketing campaigns.
According to the company, while expanding the number of initiatives, it reduced its sales and marketing expenditure by 11% in the first quarter, with 37% of the cost reductions coming from AI.
By using GenAI products for image generation, such as Midjourney, DALL-E, and Firefly, Klarna claims to have lowered image production expenses by $6 million.
Every week, it uses GenAI to alter the graphics on its website and app to reflect major retail occasions like Mother’s Day, Valentine’s Day, and summer promotions.
According to a statement from David Sandström, CMO of Klarna, “custom imagery would have been very expensive to cater to these occasions in the past, but with AI, that is no longer an issue.” “Essentially, we have removed the need for stock imagery.”
With the help of GenAI, it produced over 1,000 photos in the first three months of 2024, cutting down on the usual six-week image generation period to seven days.
Reducing expenditures on outside marketing vendors for social agencies, production, and translation results in an additional $4 million in savings.
In order to provide its customer service, Klarna teamed with OpenAI to hire an AI assistant, which the business claimed could perform the tasks of 700 full-time agents.
Also read: Unveiling the Ethical Imperatives: Navigating the Intersection of AI and Cybersecurity
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