Sezzle AI Chatbot Deflects 68% of Support Queries in Q2 2026

AI automation delivers measurable gains at Sezzle

Sezzle Inc. reported significant operational improvements from its AI initiatives in the second quarter of 2026, with its support chatbot deflecting 68% of consumer inquiries while achieving higher customer satisfaction scores than human agents. The buy-now-pay-later company also disclosed that 88% of new code was AI-developed and developer productivity increased 20% quarter over quarter.

The company's AI shopping assistant demonstrated a 3.6 times higher product click rate compared to control groups and was deployed to 80% of Sezzle Anywhere users. Management plans to expand the tool across its entire consumer base, deepening AI's role in customer engagement and transaction activity.

Why it matters

These results offer concrete benchmarks for AI's impact on operational efficiency in financial services. The 68% deflection rate and productivity gains show AI moving beyond pilot programs into core business functions, while the speed of product development—Sezzle built its upcoming Sezzle Send feature in weeks rather than months using AI—suggests compressed innovation cycles may become a competitive advantage in fintech.

Revenue growth accompanies automation push

Sezzle's AI deployment coincided with strong financial performance. Second-quarter 2026 revenues rose 51.7% year over year to $149.7 million, while adjusted EBITDA reached $58 million with a 38.8% margin. Active subscribers increased 76.4% to 854,000, and average quarterly purchase frequency climbed to a record 7.2 times.

The company implemented AI across multiple operational layers. Thirty percent of merged code received an additional AI review, and 98% of support tickets were automatically graded through its AutoQA process. Sezzle Send, the company's forthcoming product built largely with AI by a small team, already has approximately 100,000 prospective users on its wait list.

Competitive landscape in AI-driven fintech

Sezzle's competitors are pursuing similar strategies. Klarna Group is deploying AI across payments and shopping operations, with its AI assistant handling roughly two-thirds of customer-service chats within the first month of launch. The company is using AI to automate service, personalize recommendations, and improve marketing efficiency.

Affirm is embedding AI across underwriting, servicing, engineering, pricing, and merchant promotions. Its AdaptAI platform uses real-time data to customize financing incentives, with early deployments producing nearly a 10% incremental improvement in merchant conversion rates.

Market performance and analyst outlook

Sezzle shares have outperformed both the broader financial transaction services industry and the S&P 500 Index over the past three months. The stock trades at a forward 12-month price-to-earnings ratio of 19.1 times, slightly above the industry average of 18.85 times.

The Zacks Consensus Estimate for full-year 2026 earnings per share has been revised upward to $5.24, representing a projected year-over-year increase of 45.96%. Sezzle currently carries a Zacks Rank #1 (Strong Buy).

These details were first reported by Zacks Investment Research.