Klarna seeks to leverage the power of AI for offering curated shopping experiences to customers while also introducing TikTok features and new tools for advertisers.
The artificial intelligence (AI) revolution is taking over and has only accelerated over the past few months. As a result, companies are making quick pivots to hop on the trend and adopt the prowess of this new tech revolution. Recently, fintech firm Klarna announced a massive redesign of its app while adding an AI-powered TikTok-inspired discovery feed. Besides, it also introduces customized shops for social media content creators, along with the ability to sell second-hand goods.
On Tuesday, April 25, the Swedish fintech firm said that the design overhaul is to help users find the items that they want by using some advanced AI recommendation algorithms. This would also help the merchants target their customers more effectively.
Based on the shopping behaviors of the shoppers and the brand they like, the AI will build a personal profile for shoppers. Thus, the shoppers shall receive recommendations from Klarna’s 500,000 retailers including some of the top players like Nike, H&M, and others. Fintech platform Klarna currently caters to more than 150,000 users globally.
David Sandstrom, Klarna’s chief marketing officer, said that the decision comes following inspiration from Chinese tech firms. Top Chinese shopping platforms have been leveraging the power of algorithm driven-shopping. Sandstrom said:
“In China, a couple of years ago, 90% of transactions started with a search. Nowadays, less than 50% of purchases start with a search because recommendations are so tailored to them. Our ambition is to basically offer people products and brands before they knew they wanted them”.
Klarna Taking Inspiration from TikTok and ChatGPT AI
Short video-sharing platform TikTok has been leading currently in terms of introducing new features and almost every other competitor wants to copy them. Furthermore, its advanced targeting features have made TikTok the preferred choice of e-commerce business to advertise on the platform.
Kalrna is looking to make a similar move, however, Sandstrom admits the fact that it is no close to being as sophisticated as TikTok. “It would be naïve to compare us to TikTok’s recommendation engine. It would be a blatant lie to say we’re close to that,” he said. “But we have the prerequisites to do that.”
But like other tech firms, Klarna doesn’t want to hold itself back from incorporating AI software to tailor its content in a much better way for its users. Previously, Klarna also launched the ability to integrate OpenAI’s ChatGPT into its service along with a plugin that allows users to ask the popular chatbot platform for shopping inspiration.
But instead of relying on AI alone, Klarna looks to personalize its services further and recently launched the “Ask Klarna” feature. This allows shoppers to chat with or seeks video advice from specialists.
Furthermore, Klarna is launching a tool that will allow content creators to set up their own storefronts while promoting items from brands with whom they have affiliate deals. Dubbed “Creator Shop”, Klarna will launch this service in the US.
Besides, Klarna also plans to launch a self-service tool for advertisers dubbed “Ads Manager,” which will allow marketers to track paid product listings. With advertising, Klarna is planning to reduce its dependence on fees from merchants.
Bhushan is a FinTech enthusiast and holds a good flair in understanding financial markets. His interest in economics and finance draw his attention towards the new emerging Blockchain Technology and Cryptocurrency markets. He is continuously in a learning process and keeps himself motivated by sharing his acquired knowledge. In free time he reads thriller fictions novels and sometimes explore his culinary skills.