I run an AI company. This is why the blind replacement of people is a mistake | Entrepreneur

Klarna recently made the headlines – not for a breakthrough, but a retreat. After replacing 700 customer service agents by AI to save costs and to increase the profit by $ 40 million, the company admitted that the relocation service quality and hiring people to restore critical gaps. This is not just a technical story; It is a managerial lesson about balancing innovation with real-world impact.

As a founder and CEO of an AI-first company, I get the pressure to move quickly, to be big and save costs. My team lives and breathes that every day. So Klarna’s course correction did not surprise me – it underlined an important truth: there is a difference between implementing AI and really integrating. Doing that wrong can cost you more than money – it can cost trust.

Efficiency is not the only purpose

Of course, efficiency looks great on paper. Klarna saw faster resolution times and lower overhead. But when saving money, your North Star becomes the risk of breaking the customer experience that drives your company. AI must be thoughtful, step by step, earning his place in addition to human insight, not completely replaced.

At Phantom IQ we call this “stackable efficiency” – small improvements layered over time, always based on how customers actually experience your service. One task improves by 2%, then another ten – soon you have exponential profits that really scale.

Lowering your team at night to save costs is not innovation. It is a shortcut. And shortcuts in AI almost always lead to expensive price corrections.

Related: Is your ruthless pursuit of efficiency actually hurting your company? Here is how you can tell when you take productivity too far

Real leadership means real results

Nowadays there is a common AI story: announcing big plans, scale quickly, come out later. But flashy headlines do not build customer loyalty or employee confidence.

Klarna’s experience is feedback, not failing. Every AI strategy must be rooted in delivering real value, whether you are a startup or a global fintech.

We use AI as a co-pilot, not a replacement ero with human judgment, supervision and context. When AI works without this, it doesn’t fail alone – it hurts your entire system.

How do we let AI work for us?

We scale with intention. When the pressure is, automation may seem like a quick solution – but we have learned the hard way: sequence beats speed.

Our approach:

• Avoid AI where things are not clear.
• Tie any efficiency gain to a human check.
• Design workflows with AI, test them live and then automate.

This keeps us honest and focused on lasting results.

Culture is your AI Foundation

Here is the hard truth: AI is not just a technical upgrade – it is a culture shift. The purely use to save costs sends a message: people are second.

That kills trust faster than any bone error. If you replace your team without clarity or reinvestment, you risk more than the turnover – you risk the future of your company.

At my company, AI supports people who make things work. If your team feels threatened by AI, you don’t innovate – you risk dysfunction.

Related: 5 Common misconceptions about public relations

What to take away

The story of Klarna is not a warning; It is a prompt. Think carefully about how you implement AI. Balan efficiency with empathy. Build a culture where AI cancel your people does not replace them.

If you are an entrepreneur without a large Tech team, start small. Use AI to shape your strategy, co-create your route map and treat it as a partner, not a silver bullet.

The winners are not the fastest to automate. They will be those who lead with clarity, empathy and foresight.

Leading to the future

AI continues to accelerate. The question is: are you going to lead with cost -saving statistics, or with clear vision and care?

Avoid performative adoption. Design smart so that you don’t have to go back. Fear is not technical – it skips the hard work of real integration. That is where trust breaks and reputations fall. Well done, AI is not going to spend less – it is about creating more value. The best leaders understand this, and so they scale for tomorrow.

Because AI does not reward the loudest, but the smartest leaders.

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