Major Asian Bank to Eliminate 4,000 Jobs as AI Takes Over Human Roles
Bank to Replace Thousands of Jobs with AI, While Creating New AI-Related Roles
- DBS, has announced plans to reduce its workforce by 4,000 positions
- AI continues to replace tasks traditionally performed by humans.
- Permanent employees are not expected to be impacted by the reductions.
Singapore’s largest bank, DBS, has announced plans to reduce its workforce by 4,000 positions over the next three years as artificial intelligence (AI) continues to replace tasks traditionally performed by humans.
A DBS spokesperson clarified that the job cuts would primarily result from natural attrition, with temporary and contract positions phased out in the coming years.
Permanent employees are not expected to be impacted by the reductions. The bank’s outgoing CEO, Piyush Gupta, also indicated that around 1,000 new AI-related jobs would be created, making DBS one of the first major banks to detail the effects of AI on its workforce.
While the bank did not specify how many of the cuts would occur in Singapore or which specific roles would be affected, DBS currently employs between 8,000 and 9,000 temporary and contract workers as part of its 41,000-strong workforce.
Gupta, who has led DBS for over a decade, stated that the bank has already deployed over 800 AI models across 350 use cases, predicting the economic impact of these AI initiatives to exceed S$1 billion ($745 million) by 2025.
Gupta is set to depart the firm at the end of March, with current deputy CEO Tan Su Shan slated to take over.
The rapid advancement of AI technology has raised concerns about its potential impact on jobs worldwide, with the International Monetary Fund (IMF) estimating that AI could affect nearly 40% of global jobs by 2024.
IMF managing director Kristalina Georgieva warned that AI could exacerbate inequality in many scenarios.
However, Bank of England Governor Andrew Bailey downplayed fears of massive job losses, suggesting that while AI poses risks, it also offers significant opportunities for human workers to adapt and collaborate with new technologies.
