DBS Bank Leads the Charge: 4,000 Jobs to be Cut as AI Revolutionizes Banking

DBS Bank’s AI Transformation

Singapore’s largest bank, DBS, is set to reduce its workforce by approximately 4,000 roles over the next three years as part of a strategic shift towards embracing artificial intelligence (AI). This decision primarily impacts temporary and contract staff, while permanent employees remain unaffected.

Workforce Reductions and New Opportunities

A spokesperson for DBS highlighted that the cuts would occur through ‘natural attrition’ as various projects conclude, with the bank currently employing between 8,000 and 9,000 temporary workers out of a total workforce of about 41,000. Alongside the job cuts, DBS anticipates creating around 1,000 new positions related to AI to ensure a balance in the evolving job landscape.

Long-Term Vision for AI

Outgoing CEO Piyush Gupta noted that DBS has been integrating AI into its operations for over a decade, with the bank currently utilizing over 800 AI models across 350 different applications. The economic impact of these AI advancements is expected to surpass S$1 billion (approximately $745 million) by 2025.

Broader Implications of AI in Employment

This shift at DBS reflects a growing trend in the industry, as evidenced by the International Monetary Fund (IMF) predictions that AI could influence nearly 40% of jobs worldwide by 2024. The IMF has raised concerns about AI exacerbating existing inequalities in the job market. In contrast, Bank of England Governor Andrew Bailey has suggested that while AI may alter job roles, it is unlikely to lead to mass unemployment, emphasizing the potential for human workers to adapt to new technologies.