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L1 · AI across the funnel8 min read

Renewals and customer success: where AI protects revenue

For many companies, more revenue comes from existing customers than from new logos. AI in customer success and support can protect and grow that base — or damage it if customers feel pushed away.

Uses that help

  • Health scores and churn risk: combine product usage, support tickets, billing and engagement to flag accounts that need attention.
  • Renewal and expansion briefs: summarize an account's history, value delivered and open issues before a renewal call.
  • Support assistants: help human agents answer faster and more consistently.
  • Customer agents: answer routine questions directly, with a hand-off to a person.

The evidence

  • In a large field study of more than 5,000 customer-support agents, access to a generative AI assistant increased issues resolved per hour by 14% on average and 34% for novice and low-skilled workers, with little effect on the most experienced (Brynjolfsson, Li and Raymond).
  • Klarna announced in February 2024 that its AI assistant handled two-thirds of customer service chats in its first month, doing the work of 700 full-time agents, with customer satisfaction on par with human agents.

The warning

In May 2025, Klarna's CEO told Bloomberg that because cost had been too predominant an evaluation factor, the result was lower quality, and that it was critical to be clear to customers that there will always be a human if they want one. Klarna began hiring human support staff again.

Gartner's survey of 5,728 customers found 64% would prefer companies didn't use AI for customer service; their top concern was that it would become harder to reach a person.

The lesson

Use AI to make your people faster and your outreach better targeted. Keep a visible path to a human. Measure retention and satisfaction, not only cost per contact.

What this means for the CRO

If customer success reports to you, treat AI here as revenue protection, not only cost reduction. The Klarna story shows both sides: real efficiency, then a public step back on quality.

Set two non-negotiables: customers can always reach a human, and AI success is measured by gross and net retention, not just by tickets deflected. Then look for the quiet wins — faster, better-prepared renewal conversations and earlier warning on at-risk accounts.

Ask your customer-success leader for a simple before-and-after view: renewal rate, net retention and satisfaction for accounts where AI is used, compared with similar accounts where it is not.

Real example

Klarna announced on February 27, 2024 that its AI assistant had 2.3 million conversations in its first month — two-thirds of its customer service chats — doing the equivalent work of 700 full-time agents. In May 2025 its CEO told Bloomberg that focusing too much on cost had led to lower quality, and Klarna began recruiting human agents again. Source: Klarna — Klarna AI assistant handles two-thirds of customer service chats in its first month (Feb 27, 2024) ↗ · Entrepreneur — Klarna is hiring customer service agents after AI couldn't cut it on calls, according to the CEO (May 9, 2025, citing Bloomberg) ↗

Use it

Quick check · 3 questions

  1. 1.In the Brynjolfsson, Li and Raymond study, who gained most from the AI assistant?

  2. 2.What did Klarna's CEO say went wrong in 2025?

  3. 3.Which metric should lead when you judge AI in customer success?

0 of 3 answered

Sources

Last reviewed 2026-10-01.