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As more customers default on BNPL loans, Klarna's CEO predicts AI will cause a recession

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Sebastian Siemiatkowski foresees mass AI-induced headcount reductions among white collar workers.
In an article published on June 9, 2025, by Fortune, Klarna CEO Sebastian Siemiatkowski predicts that the rise of artificial intelligence (AI) could lead to a recession in the Buy Now, Pay Later (BNPL) industry. Siemiatkowski argues that as AI technologies improve and automate more tasks, job displacement will increase, reducing consumer spending power and subsequently impacting the BNPL sector. He emphasizes the need for the industry to adapt by integrating AI to enhance customer service and risk assessment, while also calling for broader economic policies to mitigate the potential negative effects of AI-driven job losses.

Read the Full Fortune Article at:
[ https://fortune.com/europe/2025/06/09/bnpl-loans-klarna-ceo-predicts-ai-recession/ ]