Shares of Klarna (NYSE:KLAR) rose 3% on Thursday after the fintech company announced a strategic collaboration with Google Cloud aimed at accelerating the integration of artificial intelligence across its global payments and shopping platform, which serves more than 114 million users.
Under the agreement, Klarna will harness Google Cloud’s advanced AI infrastructure to develop innovative customer experiences and marketing initiatives. The initial phase of the partnership will focus on personalizing the Klarna app — enhancing creative storytelling and customizing the shopping journey for individual users.
“At Klarna, we’re not just adopting AI to streamline operations – we’re using it to rethink creativity itself,” said David Sandström, 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. Early pilots already show the potential: AI-driven creative concepts, from dynamic digital lookbooks to hyper-personalized product campaigns, boosted time spent in our app by 15% and increased orders by 50%.”
The partnership will incorporate Google’s latest generative media technologies, including Veo 2 and Gemini 2.5 Flash Image, to create interactive lookbooks directly within the Klarna app. The company also plans to enhance its vast image library of more than 200 million visuals using AI tools to deliver richer, more tailored content to shoppers.
In addition to consumer-facing upgrades, Klarna will deploy Google Cloud’s AI hardware to strengthen its fraud detection capabilities. The system will support the training and deployment of graph neural networks designed to identify and prevent fraudulent activity and money laundering on its platform.
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