Artificial intelligence is poised to fundamentally alter employment landscapes in banking and other sectors reliant on knowledge workers, according to Klarna CEO Sebastian Siemiatkowski. In an interview on October 10, 2023, with Bloomberg Television, Siemiatkowski highlighted the example of the 8,000 translators in Brussels, suggesting that their roles can largely be fulfilled by AI, with a limited need for human oversight.
“The point is, you don’t need as many as we did,” Siemiatkowski stated. He emphasized that while new job opportunities will arise from technological advancements, the immediate impact for current workers, such as those in translation, could be detrimental. “There is a massive shift coming. Society will have to figure out what we are going to do,” he added, indicating the urgency of addressing this transition.
Klarna, which has experienced notable growth, reduced its workforce from 7,400 employees to 3,000 over the past two years, even as its revenue and customer base expanded. This reduction was achieved without layoffs, primarily through a significant cut in recruitment efforts. Siemiatkowski noted, “In the end, our job is here to drive as much value at the best possible price to our customers, and so we need to use these technologies to accomplish that.”
As the implications of AI continue to unfold, a report by PYMNTS titled “Generation AI: Why Gen Z Bets Big and Boomers Hold Back” revealed that 33% of generative AI users express concern about job losses due to this technology. Notably, members of Generation Z are the most apprehensive, with 38% indicating worries about employment security, while only 29% of Generation X share similar concerns.
Karen Webster, CEO of PYMNTS, commented on the evolving nature of work in the generative AI era. She pointed out that companies are not merely focused on saving time; they are exploring how to reallocate their workforce effectively. “They’re asking, ‘How do we reinvest our collective workforce capacity to become a different company?’” Webster explained, suggesting that reduced workforce needs may lead to employees becoming available for other businesses.
As organizations navigate this transformative period, the dialogue surrounding AI and its impact on employment will be essential for shaping future strategies. The call for adaptation and innovation is clear, as the workforce faces an unprecedented challenge in the wake of technological evolution.