Klarna and Google Cloud Partner on AI Shopping Personalization

Klarna and Google Cloud announced a partnership on Thursday (Oct. 9) to expand the use of artificial intelligence across Klarna’s app and operations. The initiative aims to improve personalization, creative content and fraud prevention for Klarna’s 114 million users worldwide, according to a joint press release.

Klarna will use Google Cloud’s AI systems and models to design new in-app experiences and marketing tools. Early pilot programs using Google’s Veo 2 and Gemini 2.5 Flash Image technologies produced digital lookbooks and personalized campaigns that, according to the companies, increased time spent in the Klarna app by 15% and boosted orders by 50%.

The first phase of the partnership will focus on two areas. The first is creative production, where Klarna plans to use Google’s image- and video-generation tools to build digital lookbooks and campaign visuals. The second is personalization, which will apply AI models to enhance Klarna’s library of more than 200 million product images, so visuals appear clearer and better aligned with individual preferences.

Klarna will also use Google Cloud’s computing capabilities to strengthen fraud prevention. The company plans to train graph-based machine-learning models that analyze connections among users, transactions and devices to identify suspicious activity more efficiently and improve financial-crime monitoring.

The collaboration builds on Klarna’s ongoing work to integrate automation with human-led service. Klarna said in May it would continue using human-powered support teams, noting that consumers still prefer live agents for complex payment or order issues. The company has said that AI and human service complement each other, with automation improving personalization and risk management while agents handle direct assistance.

Trends identified by PYMNTS show that firms using AI to complement human expertise reported measurable gains in satisfaction, retention and engagement. Companies that embedded AI into customer support operations achieved faster response times, higher resolution rates and stronger customer relationships across multiple industries.

Klarna’s partnership follows similar developments among FinTech firms adopting cloud-based AI for personalization and operational scale. Revolut recently expanded its work with Google Cloud to enhance data-driven personalization and support growth to 100 million customers. Google Cloud has also introduced Vertex AI Search for commerce, a platform designed to help retailers deliver customized product recommendations and improved search results.

These initiatives show how FinTech and retail companies are using AI infrastructure to deliver more personalized digital experiences, reduce fraud and support global expansion.