Klarna used AI tools to Save $6M & Create 1,000 Images in 3 Months! 🚀📊

Author

Claire Xue
June 25, 2024

Hey, Creatives!👋

We're excited to share an important update from RunwayML. The latest article on our page, "Introducing Gen-3 Alpha," dives into the next generation of AI tools designed to enhance your creative process and more.

Topics of the week:

  • AI Helps Klarna Cut Marketing Agency Spend by 25% and Run More Campaigns

  • Midjourney's New Style Reference System Update

  • 🎨Gen-3 Alpha from RunwayML 🚀

  • 🎥 AI-Driven Product Videos: Runway Gen 2 vs. Luma AI

  • YouTube’s New Rules on AI-Generated Content Disclosure 🎥🤖

  • 🌟 C.A.S.H. Camp

AI Helps Klarna Cut Marketing Agency Spend by 25% and Run More Campaigns

Klarna is leveraging AI tools to revolutionize their image production process.

Cost Reduction in External Agency Expenses 💰

  • Klarna cut spending on external marketing suppliers by 25%, saving $4 million.

Savings on Image Production 📸

  • Achieved a $6 million reduction in image production costs.

  • Used AI tools like Midjourney, DALL-E, Firefly, Topaz Gigapixel, and Photoroom.

  • Saved $1.5 million in the first quarter of 2024.

Increased Efficiency and Creativity ⚡️🎨

  • Generated over 1,000 images in the first three months of 2024 using generative AI.

  • Reduced image development cycle from 6 weeks to 7 days.

  • Ensured brand consistency, image quality, and legal compliance.

🧠My Thought!

Klarna case study regarding the AI-driven content they have been implementing externally is very impressive. They are able to cut a quarter of their costs down just in 2024 so far, half a year, and you can see the numbers. They've reduced millions of dollars in costs. The lead time average went from six weeks to just seven days. 📊 Those are impressive numbers from the Klarna report.

We will see more companies start implementing AI, using Klarna as a case study or model. Companies will start cutting costs and production lead time for images and visual content for marketing purposes. ✂️

In fact, this blog post's cover page, this flower with a pink background, is clearly a generated image. 🌸 You can see today's AI-driven content if you have a trained eye; it's pretty obvious that it's AI-generated. But with technologies moving faster and creatives adopting the tools, the output quality will get higher and higher. 📈 We'll have a harder time telling what is AI-generated content versus original creative content. The lines are going to get blurred.

Where I see a competitive edge for third-party agencies, freelancers, and creatives is truly implementing these tools for their portfolios. Learn how to use generative tools to enhance output, increase output quality, and reduce production time. ⚡ Therefore, they have a competitive edge compared to internal in-house creative teams because they can compete with lead time. With the expertise of traditional creators on top of using generative AI tools, they can potentially increase the output quality of creative assets. 🎨

This is where I see a huge opportunity for freelancers and agencies to adopt AI to further increase their creative asset quality. If the quality is a lot higher than what internal creative houses can produce, and with the speed of production, companies will likely hire external agencies because of the high quality of the creative assets. 🚀

Midjourney's New Style Reference System Update

Midjourney is pushing an exciting update to their style reference system. This update will enable users to:

  • Blend Multiple Style Codes Together: This means you can combine various style elements into one cohesive output.

🧐This update is set to revolutionize how you create and customize your visual content. Here's why it's a game-changer:

  • 🛠 Enhanced Creativity: Mix and match different styles to create unique and diverse visuals.

  • ⏱ Efficiency: Save time by streamlining your creative process with multiple personalization options.

Example Command:

  • --sref code1-code2-code3

🎨Gen-3 Alpha from RunwayML 🚀

This update is significant for several reasons:

  • Enhanced Creativity: Gen-3 Alpha offers more advanced tools that allow for greater creative freedom and innovation.

  • Efficiency Boost: With improved usability and real-time collaboration, you can streamline your workflow and produce high-quality content faster.

  • Staying Ahead: Keeping up with the latest AI advancements ensures you remain competitive in the ever-evolving creative industry.

Read full details here.

🧠My Thought!

I think this model is very comparable to Luma's AI model, Luma Video AI. Although Runway's model might have better quality in some areas, and Luma's model might excel in others, this is due to the differences in how each model is built and their training datasets.

In my experience with various AI video and image models, each one has its own strengths. 🌟 So, we can't simply say one model is much better than the other because they all have unique strengths, similar to how different designers and artists have their own incomparable strengths.

However, this is going to be a strong competitor to Luma's model. 💪 Runway already has a very user-friendly interface and excellent editing tools built into their application.

I'm excited to try it out once the public has access to the GEN-3 Alpha. 🚀 I will share some of my insights and tutorials with you all.

🎥 AI-Driven Product Videos: Runway Gen 2 vs. Luma AI 🚀

I recently put two powerhouse AI tools to the test: Runway Gen 2 and the newly launched Luma AI. Here’s the scoop:

🌟 Runway Gen 2

  • What: Created a Purity Vodka bottle video with three 4-second clips.

  • Why it matters: Runway’s motion brush allows for precise control over segmentation and motion.

  • Key takeaways:

    • Targeted motion areas with the motion brush 🚀

    • Needed text label corrections in Adobe Premiere Pro ✍️

    • Gen 3 Alpha is coming soon with improvements in consistency and fidelity!

🌐 Luma AI

  • What: Generated accurate 3D predictions from a 2D image.

  • Why it matters: Handled dynamic camera movements well, with no retouching needed for the label text.

  • Key takeaways:

    • Accurate predictions of the back and sides of the bottle 📈

    • Struggled with generating hands and fine details, but shows great potential for improvement 🌟

Overall Insights:

  • Runway Gen 2: Offers more control but requires text label corrections.

  • Luma AI: Excels in dynamic shots but has limitations in detail generation.

  • Future Outlook: Expect more polished AI-driven product commercials with consistent frames and improved model performance by the end of the year.

✨ AI Transforming Still Images into Motion Clips ✨

🚀 Join the C.A.S.H. Camp:

We will be adding some new fresh resources on the Midjourney module like Web UI updates, newest feature and AI-driven video content 📹 . Here’s a snippet ⬇️ 

These updates are all included in our July cohort, so don't miss out! 🎉 Use this code for a 10% discount: MJY8RPLZ valid until July 1st, 2024!

YouTube’s New Rules on AI-Generated Content Disclosure 🎥🤖

These rules are important for creators using AI tools to ensure their content remains compliant and avoids potential penalties.

  • Transparency: Creators must clearly disclose when videos are AI-generated.

  • Deceptive Content: AI-generated content that is misleading or harmful is strictly prohibited.

  • Verification: YouTube will use advanced AI to verify the authenticity of videos.

🌟 C.A.S.H. Camp

Here is an amazing work from our Camper Lucy Schoenfeld

Check more of her work on her Instagram @lucyschoenfeld

Don’t miss out on our upcoming C.A.S.H. Camp cohorts! Whether you're new to AI tools or looking to enhance your skills, our camp is the perfect place to elevate your creative projects.

📅 Upcoming Cohorts:

July Cohort starts on the 12th: Early bird registrations are now open! Use Code: MJY8RPLZ for a 10% discount. Offer ends July 1st, 2024.

🔗 Ready to future-proof your skillset?

Join us and take your creative projects to the next level with the power of AI. Click here to learn more and sign up for the July cohort.

That is all for this week.

✨ Community Corner: We Want to Hear from You! ✨

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Got a burning question or a puzzle for us to solve? 🤔 Submit your question here, and let’s get the conversation started! We’re excited to explore every question and share the knowledge in our upcoming editions.

🔔 Stay in the Loop!

Did you know that you can now read all our newsletters about The AI Stuff Creators and Artist Should Know that you might have missed.

Curios about C.A.S.H Camp  Click here Book a free 20-minute discovery call with me. It's the perfect no-strings-attached way to explore if this is the path for you.

Don't forget to follow us on Instagram 📸: @clairexue and @moodelier. Stay connected with us for all the latest and greatest! 🎨👩‍🎨

Stay in the creative mood and harness the power of AI,

Moodelier and Claire 🌈✨