DBS Bank, Singapore's largest bank, is set to cut 4,000 roles over the next three years as it accelerates the use of artificial intelligence (AI). Although the cuts will predominantly stem from natural attrition and affect temporary and contract positions, the bank anticipates creating around 1,000 new AI-related jobs.
DBS Bank to Trim 4,000 Jobs Amid Rising AI Integration
DBS Bank to Trim 4,000 Jobs Amid Rising AI Integration
Singapore's DBS Bank announces plans to reduce its workforce by 4,000 positions as AI technology increasingly takes over human roles, despite creating new job opportunities in the sector.
Singapore's DBS Bank, the country's foremost financial institution, has declared it will reduce its workforce by 4,000 roles in the upcoming three years due to the growing integration of artificial intelligence (AI) in its operations. A spokesperson for the bank informed the BBC that the workforce reduction will primarily result from natural attrition as temporary and contract positions conclude over the next few years. Importantly, permanent employees are not expected to face layoffs.
Outgoing CEO Piyush Gupta mentioned that the bank aims to generate approximately 1,000 new jobs related to AI, making DBS one of the pioneering banks to disclose the impact of AI on its workforce. The bank has not specified the number of job cuts anticipated in Singapore or which specific roles will be impacted by this automation shift. Currently, DBS employs about 41,000 people, including 8,000 to 9,000 temporary and contract workers.
Gupta, who will leave his position at the end of March, remarked last year that DBS has been involved in AI development for over a decade. The bank currently employs more than 800 AI models across 350 use cases, predicting a substantial economic impact exceeding S$1 billion (around $745 million) by 2025.
The expanding role of AI technology has raised questions about its implications for the global workforce. The International Monetary Fund (IMF) forecasts that nearly 40% of jobs worldwide could be influenced by AI in 2024. Managing director Kristalina Georgieva warned that "in most scenarios, AI will likely worsen overall inequality." However, Bank of England governor Andrew Bailey previously stated that while AI might not lead to mass job destruction, it presents both risks and significant opportunities for human workers.
