SUMMARY

• AI-powered discovery feed offers personalized shopping recommendations
• Creator Shop service enables content creators to set up custom storefronts
• New resale option embraces sustainability and the circular economy

Klarna, the Swedish "buy now, pay later" trendsetter, is jazzing up its app with a touch of TikTok flavor! They're incorporating a discovery feed powered by artificial intelligence, custom shops for social media content creators, and even an option to sell secondhand items. Inspired by Chinese tech platforms, Klarna aims to make shopping a breeze by offering personalized recommendations from its vast network of retailers.

While Klarna's AI isn't quite on par with TikTok's level of sophistication, they're confident they can get there. They're following the AI trend by integrating ChatGPT, an AI chatbot, for shopping inspo, and launching an "Ask Klarna" feature that connects users with human customer advice specialists. Sustainability and the circular economy are also in the mix with Klarna's new resale option for used items.

Creator Shop, a service allowing content creators to set up their own storefronts, will soon launch in the U.S. Klarna is also debuting Ads Manager, a self-service tool for advertisers to track their paid product listings. Diversifying into advertising has helped bump marketing to 10% of Klarna's overall revenue.

After a rough year that saw a massive valuation cut and workforce reduction, Klarna is optimistic about reaching monthly profitability by summer. AI is expected to play a significant role in efficiency gains, and the company is on the lookout for talented engineers to drive its AI efforts. Klarna and other buy now, pay later platforms face challenges as the global economy shifts, but they continue to innovate and adapt.

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