TLDR
- Klarna partnered with Google Cloud to use AI models including Veo 2 and Gemini 2.5 Flash Image for marketing campaigns and security improvements
- Early pilot tests showed 15% increase in time spent on the app and 50% jump in orders
- The fintech company will create AI-powered digital lookbooks and enhance its library of over 200 million images
- Google Cloud’s machine learning models will help Klarna fight fraud and money laundering on its platform
- Klarna stock jumped over 5% in early trading Thursday after the announcement, with Wall Street analysts maintaining a Strong Buy rating
Klarna stock climbed more than 5% during the first hour of trading Thursday after announcing a partnership with Google Cloud. The Swedish buy-now-pay-later company will use Google’s AI technology to transform how it markets to customers and protects them from fraud.
The collaboration focuses on deploying Google’s latest generative AI models across Klarna’s platform. The company serves over 114 million users worldwide.
Klarna will tap into Google’s Veo 2 video generator and Gemini 2.5 Flash Image tools. These AI systems will help create digital lookbooks and refine visual content for shoppers.
A lookbook is a visually rich marketing collection. It can be a book, magazine, or digital presentation that showcases products.
The company plans to enhance its existing library of more than 200 million images. The goal is making the shopping experience more personalized for each user.
AI Testing Shows Strong Results
Klarna already ran pilot tests of these AI tools. The results were eye-opening.
Time spent on the platform increased by 15%. Orders jumped by 50% during the early trials.
“For us, this is proof that when creativity meets AI, the results can transform the way people shop,” Klarna said in its announcement. David Sandstrƶm, Chief Marketing Officer at Klarna, called it a way to “rethink creativity itself.”
The company emphasized it’s not just using AI to streamline operations. It’s combining Google Cloud’s models with Klarna’s consumer insights to craft smarter experiences.
Fighting Fraud with Machine Learning
The partnership goes beyond marketing. Klarna will implement Google Cloud’s AI hardware to train and deploy graph neural networks.
These systems are designed to combat fraud and money laundering. The technology represents what Klarna calls “next-generation protections” for consumers.
The fintech company said it wants to raise the bar for creativity while safeguarding users. The security enhancements will run alongside the creative improvements.
This isn’t Klarna’s first dive into AI. The company already uses a chatbot powered by OpenAI’s architecture for customer service.
As of February 2024, the AI assistant handled two-thirds of customer service chats. The company has also added AI-powered features like personalized shopping feeds and image search over the past year.
Klarna went public in early September at a $15 billion valuation. The stock currently trades below its IPO high of $57.20 per share.
Despite the dip from its debut price, Wall Street remains bullish. Across 14 analysts covering the stock over the past three months, 11 rated it a Buy and three issued Hold ratings.
