The tool will use AI to provide users with information about objects around them through the Klarna app by pointing their phone at the objects.
Swedish fintech startup Klarna has launched an image recognition tool powered by artificial intelligence (AI). Using AI, Klarna wants to help people identify the goods they want to buy.
The new AI feature on the Klarna app allows users to point their phones at products to get information about similar items through the Klarna app. Klarna launched this feature on Wednesday.
Speaking to CNBC, Klarna chief marketing officer David Sandstrom said the company wants to help people find more uses for AI. Sandstrom said:
“We see AI as a huge opportunity for Klarna and the way we are approaching this is to provide everyone at Klarna with the tools and support to use AI in their daily work. Our unique operating model gives us the agility to take advantage of emerging opportunities that offer better consumer benefits like AI than traditional banks and credit card companies.
Klarna trained its new AI tool using data from price comparison service PriceRunner. Last April, Klarna acquired Price runner at around $1 billion. At the time, Klarna said PriceRunner would bring a number of features to its app, including price comparison, product reviews and product search. The announcement also said that the new features will help customers take better control of their finances by making informed decisions.
With the new feature, Klarna is now competing with Amazon, French shopping search engine Kelku and Alphabet’s comparison service Google Shopping.
Other Klarna updates including AI personalized profiles
This is not Klarna’s first attempt at using AI. In March, the company announced It integrated ChatGPT plugin to provide shopping assistance to its users. According to the announcement, users can get product recommendations and shopping advice from Klarna. The app will also send links to users to purchase the products.
For a long time, Klarna has allowed users to use a “buy now, pay later” model, allowing people to pay for goods in installments. The company is also focusing more on designing features for shopping. Earlier this year, Klarna rebuilt Its app will include a discovery feed similar to TikTok. The feed recommends products to users using AI algorithms, which create personalized profiles of buyers.
Klarna also introduced shoppable videos in Europe, a feature already available in the US. Through shoppable videos, users can watch tutorials, reviews, unboxing videos, and clips from merchants and Klarna content creators. Klarna already works with social media influencers who have significant influence on purchasing decisions.
Additionally, the company launched Klarna Cash, a cashback rewards program. Klarna Cash allows users to earn up to 10% of their purchases at checkout by selecting Pay Now, Pay Three, or Pay Later.
In August, Klarna unfortunately announced That it did not report profit in the first half of 2023. Although the company said it took several cost-cutting measures that helped reduce losses by about 67%, it still did not turn a profit. Klarna’s net loss was 2.1 billion Swedish krona, 67% lower than the 6.5 billion krona reported in the first half of 2022.
Tolu is a cryptocurrency and blockchain enthusiast based in Lagos. He likes to strip down the secrets of crypto stories to the basics so that anyone anywhere can understand without too much background knowledge. When Tolu is not deeply immersed in crypto stories, he enjoys music, loves to sing and is an avid film buff.
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