Klarna and Google Cloud Forge AI Partnership for Enhanced Shopping Experience

Klarna and Google ink AI deal

This content has been selected, created and edited by the Finextra editorial team based upon its relevance and interest to our community. The firms say that their new "AI-first" partnership will accelerate innovation, creativity, and customer-centric products to BNPL giant Klarna's more than 114 million consumers worldwide. Initially, the deal will focus on "creative velocity", with Klarna tapping into Google's latest generative media models, including Veo 2 and Gemini 2.5 Flash Image (Nano Banana), to create dynamic digital "lookbooks" for consumers that are available within the app. In addition, Klarna will enhance its library of more than 200 million images by using AI models to regenerate and refine visuals, "ensuring every shopper experiences more engaging, high-quality visual content within its app". The partnership also extends into security, with Klarna using Google Cloud's AI hardware and expertise to train and deploy graph neural networks to combat fraud and money laundering on its platform. David Sandström, CMO, Klarna, says: "At Klarna, we're not just adopting AI to streamline operations - we're using it to rethink creativity itself. "By combining Google Cloud's leading AI models with Klarna's unique consumer insights, we can craft experiences that feel smarter and more personal. Early pilots already show the potential: AI-driven creative concepts, from dynamic digital lookbooks to hyper-personalized product campaigns, boosted time spent in our app by 15% and increased orders by 50%. For us, this is proof that when creativity meets AI, the results can transform the way people shop." Klarna has been an enthusiastic AI adopter: a year ago, CEO Sebastian Siemiatkowski boasted in a letter to shareholders that the BNPL giant's assistant was performing the work of 700 employees. At the time, the company revealed that it had trimmed its workforce through natural attrition from 5000 to 3800 over the last year and Siemiatkowski said there was an ambition to get this down to 2000, thanks largely to AI. More recently, the firm even launched a hotline to an AI avatar of Siemiatkowski where consumers can provide conversational feedback on product features, issues and suggestions for improvements.

Klarna Partners With Google Cloud to Drive AI-Powered Personalized Shopping | PYMNTS.com

By completing this form, you agree to receive marketing communications from PYMNTS and to the sharing of your information with our sponsor, if applicable, in accordance with our Privacy Policy and Terms and Conditions. Klarna will use Google Cloud's AI systems and models to design new in-app experiences and marketing tools. Early pilot programs using Google's Veo 2 and Gemini 2.5 Flash Image technologies produced digital lookbooks and personalized campaigns that, according to the companies, increased time spent in the Klarna app by 15% and boosted orders by 50%. The first phase of the partnership will focus on two areas. The first is creative production, where Klarna plans to use Google's image- and video-generation tools to build digital lookbooks and campaign visuals. The second is personalization, which will apply AI models to enhance Klarna's library of more than 200 million product images, so visuals appear clearer and better aligned with individual preferences. Klarna will also use Google Cloud's computing capabilities to strengthen fraud prevention. The company plans to train graph-based machine-learning models that analyze connections among users, transactions and devices to identify suspicious activity more efficiently and improve financial-crime monitoring. The collaboration builds on Klarna's ongoing work to integrate automation with human-led service. Klarna said in May it would continue using human-powered support teams, noting that consumers still prefer live agents for complex payment or order issues. The company has said that AI and human service complement each other, with automation improving personalization and risk management while agents handle direct assistance. Trends identified by PYMNTS show that firms using AI to complement human expertise reported measurable gains in satisfaction, retention and engagement. Companies that embedded AI into customer support operations achieved faster response times, higher resolution rates and stronger customer relationships across multiple industries. Klarna's partnership follows similar developments among FinTech firms adopting cloud-based AI for personalization and operational scale. Revolut recently expanded its work with Google Cloud to enhance data-driven personalization and support growth to 100 million customers. Google Cloud has also introduced Vertex AI Search for commerce, a platform designed to help retailers deliver customized product recommendations and improved search results. These initiatives show how FinTech and retail companies are using AI infrastructure to deliver more personalized digital experiences, reduce fraud and support global expansion.