Klarna customers aren’t paying off their loans. Company enlists AI-generated CEO to break the bad news

Klarna, the Swedish "buy now, pay later" fintech company, used an AI-generated version of its CEO to deliver bad news about customer loan repayment rates.

Why aren't Klarna customers repaying their loans?

According to the press release, which was accompanied by the AI video, Klarna customer credit losses from failing to repay loans rose to 17% in Q1 of 2025.

The "buy now, pay later" microloan platform allowed customers to purchase everyday items from DoorDash, Walmart, eBay, and more.