Klarna is looking to leverage the power of AI to deliver a personalized shopping experience to customers while introducing TikTok features and new tools for advertisers.
The Artificial Intelligence (AI) revolution is dominating and has picked up pace in the last few months. As a result, companies are making quick pivots to jump on the trend and embrace the power of this new technological revolution. Recently, fintech firm Klarna announced a massive redesign of its app, adding an AI-powered TikTok-inspired discovery feed. In addition, it offers the ability to sell second-hand goods as well as a customized shop for social media content creators.
The Swedish fintech firm said on Tuesday, April 25, that the design overhaul is meant to help users find the items they want by using some advanced AI recommendation algorithms. This will also help merchants target their customers more effectively.
Based on the buying behavior of the buyers and the brands they prefer, the AI will create a personalized profile for the buyers. Thus, buyers will get recommendations from Klarna’s 500,000+ retailers which include some of the top players like Nike, H&M, and others. fintech platform to curl Currently serves over 150,000 users globally.
Klarna chief marketing officer David Sandstrom said the decision was inspired by Chinese tech firms. Top Chinese shopping platforms are leveraging the power of algorithmically driven shopping. sandstrom Said,
“In China, a few years ago, 90% of transactions started with a search. Nowadays, less than 50% of purchases start with a search because recommendations are tailored to them. Our ambition is to basically help people discover products and brands have to offer, before they knew they wanted them”.
Klarna taking inspiration from TikTok and ChatGPT AI
Short video-sharing platform TikTok is currently leading the way in introducing new features and almost every other competitor wants to copy them. Furthermore, its advanced targeting features have made TikTok the preferred choice for e-commerce businesses to advertise on the platform.
Klarna is looking to take a similar approach, however, Sandstrom acknowledges the fact that it is nowhere near as sophisticated as TikTok. “It would be unwise to compare us with the recommendation engine of TikTok. It would be an outright lie to say that we are close to him Said, “But we have the prerequisites to do so.”
But like other tech firms, Klarna doesn’t want to shy away from incorporating AI software to better tailor its content for its users. Earlier, Klarna also launched the ability to integrate OpenAI’s ChatGPT into its service with a plugin that allows users to ask the popular chatbot platform for shopping inspiration.
But instead of relying on AI alone, Klarna wants to further personalize its services and recently launched the “Ask Klarna” feature. It allows shoppers to chat with experts or seek video advice.
In addition, Klarna is launching a tool that will allow content creators to set up their own storefronts promoting items from brands they have affiliate deals with. Dubbed “Creator Shop”, Klarna will be launching the service in the US.
In addition, Klarna also plans to launch a self-service tool for advertisers called “Ads Manager,” which will allow marketers to track paid product listings. With advertising, Klarna plans to reduce its dependence on fees from merchants.
Bhushan is passionate about Fintech and has a good grasp of understanding the financial markets. His interest in economics and finance drew his attention to the newly emerging blockchain technology and cryptocurrency markets. He is in the process of continuous learning and keeps motivating himself by sharing his acquired knowledge. In his spare time he reads thriller fiction novels and occasionally explores his culinary skills.
Bitcoin Crypto Related Post