Klarna has signed on to use Google Cloud's full AI stack, from infrastructure, to platform, to models.
The firms say that their new "AI-first" partnership will accelerate innovation, creativity, and customer-centric products to BNPL giant Klarna's more than 114 million consumers worldwide.
Initially, the deal will focus on "creative velocity", with Klarna tapping into Google's latest generative media models, including Veo 2 and Gemini 2.5 Flash Image (Nano Banana), to create dynamic digital "lookbooks" for consumers that are available within the app.
In addition, Klarna will enhance its library of more than 200 million images by using AI models to regenerate and refine visuals, "ensuring every shopper experiences more engaging, high-quality visual content within its app".
The partnership also extends into security, with Klarna using Google Cloud's AI hardware and expertise to train and deploy graph neural networks to combat fraud and money laundering on its platform.
David Sandström, CMO, Klarna, says: "At Klarna, we're not just adopting AI to streamline operations - we're using it to rethink creativity itself.
"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%. For us, this is proof that when creativity meets AI, the results can transform the way people shop."
Klarna has been an enthusiastic AI adopter: a year ago, CEO Sebastian Siemiatkowski boasted in a letter to shareholders that the BNPL giant's assistant was performing the work of 700 employees.
At the time, the company revealed that it had trimmed its workforce through natural attrition from 5000 to 3800 over the last year and Siemiatkowski said there was an ambition to get this down to 2000, thanks largely to AI.
More recently, the firm even launched a hotline to an AI avatar of Siemiatkowski where consumers can provide conversational feedback on product features, issues and suggestions for improvements.