Human-in-the-Loop Strategies for AI Agents

Pratik Bhavsar
Pratik BhavsarGalileo Labs
Human-in-the-Loop Strategies for AI Agents
2 min readJanuary 09 2025

When Klarna rolled out their AI agents to handle millions of customer interactions, they learned an important lesson: the path to success wasn't about eliminating human involvement, but strategically integrating it. Their journey from handling basic queries to managing complex customer interactions across markets reveals important insights about how companies should think about human-in-the-loop (HITL) implementations. Let's dive into what makes these systems truly effective.

The Art of Smart Handoffs

Think of handoffs not as failures but as strategic decisions. Klarna's chatbot, which handled work equivalent of 700 full-time agents, didn't achieve success by trying to automate everything. Instead, they built carefully designed triggers to determine when a human touch is needed. Sometimes it's obvious: regulatory requirements or high-value transactions. But the real magic happens in detecting subtle signals: a customer's growing frustration, complex multi-step processes or situations where the AI's confidence starts to waver.

The key metrics to monitor for handoffs include:

  • AI confidence scores dropping below certain thresholds
  • Detection of specific keywords or compliance triggers
  • Pattern recognition of user frustration signals
  • Complex query indicators requiring human judgment

Establish Feedback Loop

By building a feedback loop where every human intervention becomes a teaching moment for the AI. Human agents can actively contribute to the system's knowledge base through structured feedback mechanisms.

Consider it like having senior developers mentor junior ones - except in this case, the junior developer is your AI system, constantly learning from human expertise. This isn't just error correction; it's systematic knowledge transfer that makes the entire system smarter over time.

Building a Tiered Response System

Instead of thinking in binary terms (AI or human), create a system that matches response strategies to situation complexity.

Their highest performing model works like this:

  • Simple queries get fully automated responses
  • Moderate complexity cases receive AI responses with human review
  • Complex or critical cases start with human handlers but leverage AI assistance

This approach can optimize both cost and quality - using expensive human resources where they add the most value while letting automation handle the routine stuff.

Making it Work in the Real World

The rubber meets the road in implementation. Successful HITL systems need both strategic planning and tactical excellence. Start with more human oversight than you need, then gradually dial it back as your system proves itself. Track everything - not just error rates, but also cost per resolution, customer satisfaction, and learning effectiveness.

Here's a practical way to think about measuring success:

  1. Track error reduction rates over time
  2. Monitor cost per resolution across different interaction types
  3. Measure customer satisfaction trends
  4. Calculate ROI including both direct and indirect benefits

The Road Ahead

Remember, the goal isn't to build a perfect AI system - it's to create a system that gets better every day. Your human-in-the-loop strategy should feel less like a safety net and more like a coaching system, where human expertise continuously enhances AI capabilities while AI increasingly supports human decision-making.

When done right, the virtuous cycle between human expertise and AI amplify each other, leading to better customer outcomes and more efficient operations.

Chat with our team to learn more about how to build trustworthy AI agents.