Klarna CEO Sebastian Siemiatkowski has opened up about how Artificial Intelligence is transforming the way he brings ideas to life. In a recent podcast conversation, he shared how AI-powered “vibe coding” allows him to turn concepts into working prototypes in just 20 minutes—something that once took weeks of engineering time.

The buy-now-pay-later giant has been leaning heavily on AI over the past few years, with advanced models taking on tasks previously handled by hundreds of employees. In fact, Klarna’s AI customer service tools reportedly replaced the workload of about 700 employees in 2024. But beyond streamlining customer support, Siemiatkowski has personally embraced AI to fast-track innovation inside the company.

The Klarna chief credited this breakthrough to his discovery of Cursor, an AI-assisted coding tool. By using large language models (LLMs), Cursor enables “vibe coding”—a term coined by OpenAI co-founder Andrej Karpathy—to quickly generate functional code.

“I was a business person, and then I just started exploring Cursor,” Siemiatkowski explained on the Sourcery podcast. “Now I sit with a computer, I describe what I want, and within 20 minutes AI gives me a prototype. Earlier, I’d have to wait weeks for engineers to build it.”

He noted that this shift not only saves his own time but also helps his product teams. Instead of sending half-baked ideas to engineers, he now tests them himself. “Rather than disturbing my poor engineers and product people with what is half good ideas and half bad ideas, now I come back with something that works. Then we can have a real discussion about improving it,” he added.

While AI has become an indispensable part of Klarna’s operations, Siemiatkowski has been candid about the challenges it poses. Earlier this year, he warned that rapid advancements in AI could trigger job losses in white-collar sectors, potentially leading to a recession. He believes the impact of AI on the job market will be significant, especially for roles traditionally considered safe from automation.

Despite this, Klarna has not abandoned human talent. The company continues to prioritize personal connections in customer service, even as AI handled more than 2.3 million queries last year. Klarna is also reportedly developing a new support model that mirrors ride-hailing platforms. Customers would be able to reach human agents working remotely, much like booking a driver on Uber.

Interestingly, Siemiatkowski hinted earlier this year that direct human interaction may soon become more of a premium or “VIP” service, reserved for customers who want a personalized experience beyond AI’s efficiency.

By combining the speed of AI with the creativity and judgment of human teams, Klarna is positioning itself at the forefront of how technology can reshape both work and customer experience. And for Siemiatkowski, AI-driven vibe coding has become more than just a tool—it’s a new way of thinking, building, and innovating.