Klarna, a $7 billion 'buy now, pay later' startup, has implemented a ChatGPT-powered AI assistant, which has significantly impacted its customer service operations. In its first four weeks, the AI managed two-thirds of Klarna's customer service chats, totaling 2.3 million conversations. This level of automation has allowed Klarna to effectively replace the workload of 700 full-time customer service agents. The AI assistant is capable of handling a wide range of customer service tasks, including refunds, returns, payment-related issues, and cancellations. This deployment comes after Klarna laid off 700 employees, indicating a shift towards more AI-driven operations within the company.