Klarna and Google form AI partnership to revolutionize shopping experiences

Klarna will harness Google Cloud's AI infrastructure to create innovative customer-focused products

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Amelia Brand
10/13/2025

Klarna, the Swedish fintech company that provides online financial services, has announced an artificial intelligence (AI)-first partnership with Google Cloud that could significantly shift how consumers experience shopping in its app.

This partnership will see Klarna harnessing the full breadth of Google Cloud’s AI capabilities – from infrastructure and platform to advanced models – to fast-track the creation of innovative customer-focused products and imaginative campaigns.

With over 114 million users globally, the scale is large and the stakes for customer experience (CX) are even larger.

Already, the early pilots are showing impressive numbers. Dynamic lookbooks and highly personalized product campaigns have produced a 50 percent increase in orders. Also, users are spending 15 percent more time in the Klarna app. These metrics point to a significant deepening in customer engagement.

“At Klarna, we’re not just adopting AI to streamline operations – we’re using it to rethink creativity itself,” said David Sandstrom, chief marketing officer at Klarna. “By combining Google Cloud’s leading AI models with Klarna’s unique consumer insights, we can craft experiences that feel smarter and more personal.”

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What does Klarna and Google’s AI partnership look like?

Let’s take a closer look at this partnership. Klarna and Google’s partnership focuses on two key areas:

Creative velocity: Klarna will use Google’s generative media models, including Veo 2 and Gemini 2.5 Flash Image, to produce dynamic lookbooks and hyper-personalized marketing campaigns, enhancing the app’s visual storytelling and campaign efficiency.

Personalization and visual enhancement: Klarna’s library of over 200 million images will be refined using advanced AI, delivering high-quality visuals tailored to individual consumer preferences and driving more engaging shopping journeys.

Emphasizing the strategic value of the collaboration in the age of AI, Marianne Janik, vice president, EMEA North at Google Cloud, said:

“To lead in this new AI era, businesses require more than tools – they need strategic capabilities. Our partnership with Klarna is about providing just that. We’re proud to help Klarna not just adopt AI, but fundamentally redefine the CX.”

Listen to how digitization, automation and new AI tools hold the potential to streamline CX operations and streamline conversations with clients, improving productivity and reducing call query resolution times.

The science of personalization

Research confirms that personalization is a critical factor in CX success. According to CX Network’s Global State of CX 2025 report, around 45 percent of practitioners agree that customers expect journeys to be personalized, yet only a fraction feel their own organizations are highly capable of delivering that level of customization.

Also, many other studies suggest that when personalization is done well, it drives significant customer loyalty. Conversely, 76 percent of consumers report frustration when content or recommendations feel generic or irrelevant. Klarna’s early AI pilots indicate that the company may be closing that gap, delivering the type of experiences that customers are increasingly unwilling to compromise on.

Visual storytelling at scale

The use of generative AI for creative production also allows Klarna’s marketing and product teams to iterate faster, respond to trends and deliver fresh content without relying solely on human designers.

However, the partnership also comes with challenges. Over-personalization can feel intrusive and Klarna will need to ensure that its personalized experiences feel genuinely helpful rather than uncanny or repetitive. Equally important is measuring the impact on long-term customer sentiment, retention and loyalty – rather than just relying on transaction-based metrics.

For Sandstrom, the proof is in the pudding and their early success shows that “when creativity meets AI the results can transform the way people shop.”