It's Happening: Humans Out, AI In at Tech Firm

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What’s Ahead

• Tech Company Stops Hiring Humans, Replaces Entire Workforce with AI

• China’s AI Models Are Beating U.S. Competitors Despite Chip Bans

• Friends Star Lisa Kudrow Slams Tom Hanks’ AI Endorsement

Tech Company Stops Hiring Humans, Replaces Entire Workforce with AI

Klarna, a leading fintech company known for its "buy now, pay later" services, has replaced hundreds of its employees with artificial intelligence. CEO Sebastian Siemiatkowski revealed that AI now manages tasks previously handled by human workers.

The Details

Founded in 2005, Klarna offers consumers the option to make purchases and pay for them later, revolutionizing how people shop online. The company has grown rapidly, but it now faces a major shift as it embraces AI across all operations. Klarna’s workforce has shrunk by 22% from 4,500 employees to 3,500 due to AI integration.

A key change is the use of an OpenAI-powered assistant, which has taken over the roles of 700 customer service agents. With AI handling an increasing number of tasks, Klarna is focusing on streamlining operations and boosting productivity, though this has led to concerns about job displacement. While the company still hires for essential roles like engineering, its reliance on AI marks a significant move away from human labor.

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China’s AI Models Are Beating U.S. Competitors Despite Chip Bans

China is quickly catching up to the U.S. in the AI race, with local companies developing powerful AI models that rival and, in some cases, outperform American versions.

The Details

Chinese tech giants like Alibaba and DeepSeek are releasing advanced AI models, known as large language models (LLMs), that power chatbots and other applications. These models are open-source, meaning developers can use and modify them for free, which has made them hugely popular worldwide. Alibaba’s Qwen, in particular, has become a favorite, thanks to its high performance and easy licensing.

While the U.S. has tried to limit China’s access to advanced chips, Chinese companies are using a mix of stockpiled Nvidia chips and homegrown alternatives like those from Huawei. This has allowed them to continue making major strides in AI. Experts believe that China’s growing AI capabilities will allow them to challenge the U.S. for dominance in the future tech ecosystem.

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Friends Star Lisa Kudrow Slams Tom Hanks’ AI Endorsement

Lisa Kudrow, best known for Friends, recently took aim at the growing use of AI in Hollywood, particularly in Robert Zemeckis’ Here. The film, starring Tom Hanks and Robin Wright, used cutting-edge AI-driven de-aging technology, and Kudrow’s remarks are stirring up controversy.

The Details

Kudrow criticized the film’s use of AI technology that made Hanks and Wright appear decades younger, calling it an "endorsement for AI." She warned that AI might replace real actors, leaving no room for up-and-coming talent. Kudrow also questioned the future of human jobs in Hollywood, suggesting people could end up with only "living stipends" as AI takes over.

Tom Hanks, who also weighed in on AI’s potential, predicted that actors could continue performing long after their deaths through AI and deepfake technology. He acknowledged the challenges surrounding the legal rights to actors' voices and likenesses, suggesting that, in the future, audiences may not care whether they’re watching a real actor or an AI creation.

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👇 Look: Consumers call AI-generated video ads annoying and confusing.

Marketers are excited about using AI in ads, but research shows consumers don’t feel the same. Consumers notice the lack of realism in AI ads, with awkward facial expressions and unnatural movements. For example, Toys R Us recently launched a campaign using OpenAI’s Sora, a text-to-video tool, but consumer reactions to AI-generated ads remain largely negative.