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In 2024, Klarna, a Swedish financial technology company that provides digital banking, announced that its AI assistant was doing the equivalent work of 700 fulltime customer-service agents. It handled millions of conversations, shortened response times, Human Resources   and was projected to improve profits by $40 million. It looked like the future had arrived. Then came the plot twist. n 2025 (one year later), Klarna’s CEO acknowledged that an intense focus on cost had contributed to lower-quality service. The company began recruiting human customer-service representatives again so customers could always reach a person when needed. The lesson is not that AI failed. Klarna continues to use it successfully. The lesson is that efficiency and engagement are not interchangeable—and technology cannot replace every element of human judgment, empathy, and experience.  A Different Approach: Invest in People IKEA took another path. As its AI assistant began handling routine customer qu...