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Klarna CEO: Company stopped hiring because AI 'can do all of the jobs'

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Re: Klarna CEO: Company stopped hiring because AI 'can do all of the jobs'

#151
post #16

They can’t even answer their support tickets using AI. We just had one waiting for over two months (customer is multi million revenue per month) and after escalating twice, we get a link to the docs (didn’t have the info) and find out they have changed the name of their product for online checkout to Kustom after selling it off.

[flagged]

Re: Klarna CEO: Company stopped hiring because AI 'can do all of the jobs'

#152

They stopped hiring because after raising over a billion dollars their value dropped 80%, they can't raise any more money, and after operating for 19 years they finally had a profitable quarter in Q2 2024. They are in "burn the furniture to heat the cabin" mode.

They could just borrow a page from their Swedish buds Neo4j and aim for funding round Q to keep themselves alive

Re: Klarna CEO: Company stopped hiring because AI 'can do all of the jobs'

#153

First time I tried Klarna, their 'payment' workflow was actually a 'grant full access to all bank accounts' workflow in disguise. I was thinking this amount of misleading must be illegal. Further interactions with them always felt sleazy. Maybe they know the regulators will dismantle the company in the near future and are optimizing for extracting the maximum before their implosion?

FWIW, after I gave Klarna a sneak peek into my banking account several years ago, I did a GDPR/DSGVO information request a few days later, and according to that, they did not store the transactions they had access to.

Not sure if the information was truthful, of course.

Re: Klarna CEO: Company stopped hiring because AI 'can do all of the jobs'

#154
post #69

Earlier quoted context omitted.

See, the thing is, to determine which abstractions are "right and proper" you _already need a software engineer_ who knows those kinds of things. Moreover, that engineer needs to ability to read that code, understand it, and plan its evolution over time. He/she also needs to be able to fix the bugs, because there will be bugs.

I think your main thesis is that "AI of today and foreseeable future is not going to solve them end to end." My belief is that we can't solve them today (agree with you), but we can solve them in foreseeable future (in 3 years). So it is really a matter of different beliefs. And I don't think we will be able to convince each other to switch belief. Let's just watch what happens?

Well, I know what will happen within about a year long time horizon. As far as at least developer assistance models are concerned the difference at the end of 2025 is not going to be dramatic, same as it was not between the end of '23 and this year, and for the same reasons - you do need symbolic reasoning to generate large chunks of coherent, correct code. I also don't see where "dramatic" would come from after that either unless we get some new physics which lets us run models 10-20x the size in realtime, economically. But even then, until we get true AGI, which we won't get in my remaining lifetime, those systems will be best used as a "bicycle for the mind" rather than "the mind", and in the vast majority of cases they will not be able to replace humans entirely, at least not in software engineering.

Re: Klarna CEO: Company stopped hiring because AI 'can do all of the jobs'

#155

Earlier quoted context omitted.

I think your main thesis is that "AI of today and foreseeable future is not going to solve them end to end." My belief is that we can't solve them today (agree with you), but we can solve them in foreseeable future (in 3 years). So it is really a matter of different beliefs. And I don't think we will be able to convince each other to switch belief. Let's just watch what happens?

I'm with you 100% of the way on this one. Am coding with Claude 3.5 right now using Aider. The future is clear at this point. It won't get worse and there's still so much low hanging fruit. Expertise is still useful to guide it, but we're all product managers now.

There are a lot more photographers now than there ever were painters, and the size of the industry is much larger than it used to be. It is true that our work will change, but personally I think that's great - I don't enjoy the initial hump that you usually have to overcome before you begin to actually solve real problems, and AI is often able to take me over that hump, or fill in things that don't matter. E.g. I'm a backend person but need a frontend for the demo - I'm able to do that on my own now, without spending days figuring out some harebrained web framework and CSS stack - something I probably wouldn't do at all if there wasn't no AI.

Re: Klarna CEO: Company stopped hiring because AI 'can do all of the jobs'

#156
post #32

Earlier quoted context omitted.

Sounds like 20 years ago when everyone was moving IT to India.

I think this is something much more extreme. I work for a healthcare company and an email from a business customer today found its way to me asking if we use or plan on using "AI". The person asking this absolutely makes business decisions and absolutely has no idea what they are talking about. It was clear from the email that all they know is "AI good", "No AI bad". It would be like outsourcing to India if even busi…

Managers and executives get rewarded for pushing AI and CEOs get punished for not having an AI strategy. It is an epic feedback loop.

Re: Klarna CEO: Company stopped hiring because AI 'can do all of the jobs'

#157
post #32

Earlier quoted context omitted.

Sounds like 20 years ago when everyone was moving IT to India.

I think this is something much more extreme. I work for a healthcare company and an email from a business customer today found its way to me asking if we use or plan on using "AI". The person asking this absolutely makes business decisions and absolutely has no idea what they are talking about. It was clear from the email that all they know is "AI good", "No AI bad". It would be like outsourcing to India if even busi…

Multiple fast food companies tried to outsource restaurant workers to india:

2009, Jack in the box: https://www.reddit.com/r/business/comments/7ujy2/jackinthebo...

2016, McDonalds: https://www.zeebiz.com/companies/news-mcdonalds-to-outsource...

Re: Klarna CEO: Company stopped hiring because AI 'can do all of the jobs'

#158

Earlier quoted context omitted.

You find people being upset about losing their jobs to AI so executives can further enrich themselves fascinating?

I find it fascinating, that we assume that employers should care more about employees, than employees care about employers.

We do not, and they don’t.

Almost every employee starts out believing the spiel about mission, team, and caring for workers (to some degree) and personally invest care in the endeavor.

Up until they are fired for the first time seemingly in contradiction to what was promised.

Companies and employers do not and have never cared for employees personally. They can not.

Eventually, most workers gain a much more pragmatic understanding of how the world works. At that point, they are at best equal.

Re: Klarna CEO: Company stopped hiring because AI 'can do all of the jobs'

#160
post #40

Nearly every CEO I’ve talked to in the past three months (only a handful, admittedly) has said something along these lines, if not quite as extreme. They genuinely believed the current state of the art is polished and powerful enough to replace huge swathes of coders, designers, writers, etc. leaving only a middle-management supervisory layer and some lower-level grunts to herd the bots. Or it’s a good PR ruse to sca…

The most ironic thing is thar the middle managers are somehow surviving this. So far, anyway, but I think they’ll be found too sooner or latet

They’re probably the only ones it makes sense to keep on. You have a couple of grunts code reviewing the equivalent of 10 devs of work from AI and a manager to keep them going.
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