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Klarna Says AI Drive Has Helped Halve Staff Numbers and Boost Pay

2 weeks 1 day ago
Klarna has claimed that AI-related savings have allowed the buy now, pay later company to increase staff salaries by nearly 60%, but hinted it could slash more jobs after nearly halving its workforce over the past three years. From a report: Chief executive Sebastian Siemiatkowski said headcount had dropped from 5,527 to 2,907 since 2022, mostly as a result of natural attrition, with departing staff replaced by technology rather than by new staff members. The figures add to the impact of an internal artificial intelligence programme, which had steadily reduced its use of outsourced workers including those in customer service, with technology now carrying out the work of 853 full-time staff, up from 700 earlier this year. It meant the company, which was founded in Sweden in 2005, had managed to increase revenues by 108% while keeping operating costs flat. Siemiatkowski told analysts on an earnings call on Tuesday that it was "pretty remarkable, and unheard of as a number, among businesses."

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Oracle is Already Underwater On Its 'Astonishing' $300B OpenAI Deal

2 weeks 1 day ago
An anonymous reader shares a report: It's too soon to be talking about the Curse of OpenAI, but we're going to anyway. Since September 10, when Oracle announced a $300 billion deal with the chatbot maker, its stock has shed $315 billion in market value. OK, yes, it's a gross simplification to just look at market cap. But equivalents to Oracle shares are little changed over the same period (Nasdaq Composite, Microsoft, Dow Jones US Software Index), so the $15 billion loss figure [figure updated with stock price] is not entirely wrong. Oracle's "astonishing quarter" really has cost it nearly as much as one General Motors, or two Kraft Heinz.

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'Talking To Windows' Copilot AI Makes a Computer Feel Incompetent'

2 weeks 1 day ago
Microsoft's Copilot AI assistant in Windows 11 fails to replicate the capabilities shown in the company's TV advertisements. The Verge tested Copilot Vision over a week using the same prompts featured in ads airing during NFL games. When asked to identify a HyperX QuadCast 2S microphone visible in a YouTube video -- a task successfully completed in Microsoft's ad -- Copilot gave multiple incorrect answers. The assistant identified the microphone as a first-generation HyperX QuadCast, then as a Shure SM7b on two other occasions. Copilot couldn't identify the Saturn V rocket from a PowerPoint presentation despite the words "Saturn V" appearing on screen. When asked about a cave image from Microsoft's ad, Copilot gave inconsistent responses. About a third of the time it provided directions to find the photo in File Explorer. On two occasions it explained how to launch Google Chrome. Four times it offered advice about booking flights to Belize. The cave is Rio Secreto in Playa del Carmen, Mexico. Microsoft spokesperson Blake Manfre said "Copilot Actions on Windows, which can take actions on local files, is not yet available." He described it as "an opt-in experimental feature that will be coming soon to Windows Insiders in Copilot Labs, starting with a narrow set of use cases while we optimize model performance and learn." Copilot cannot toggle basic Windows settings like dark mode. When asked to analyze a benchmark table in Google Sheets, it "constantly misread clear-as-day scores both in the spreadsheet and in the on-page review."

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