August, 2024. AI is disrupting SaaS, and no one saw it coming ....
Klarna, the popular buy-now-pay-later platform, is undergoing a significant technological transformation.
As announced by CEO Sebastian Siemiatkowski, the company is shutting down its use of Salesforce and Workday, two major software-as-a-service (SaaS) providers. This decision is part of a broader initiative to streamline operations and leverage artificial intelligence (AI) for greater efficiency.
According to Siemiatkowski, Klarna is consolidating its tech stack and replacing SaaS solutions with internally developed systems. This move is expected to reduce costs and improve the company's overall performance. The CEO emphasized the role of AI in driving this transformation, stating that the technology will enable Klarna to standardize processes and create a more lightweight and effective tech infrastructure.
In addition to the SaaS shutdown, Klarna has also announced plans to reduce its workforce. The company believes that AI can help automate certain tasks and reduce the need for human intervention, leading to cost savings and improved efficiency.
Klarna's recent announcement comes on the heels of its second-quarter financial results, which showed a 27% increase in revenue year-over-year. The company's strategic shift towards AI and a more streamlined tech stack is likely to have a significant impact on its future growth and profitability.
