DBS Bank to Cut 4,000 Jobs as AI Integration Advances

In this company, AI is going to replace more than 4,000 workers - Softonic

DBS Bank plans to cut 4,000 jobs over three years as it integrates artificial intelligence DBS, the largest bank in Southeast Asia, has announced its intention to reduce 4,000 jobs over the next three years as it implements artificial intelligence (AI) in its operations. This decision is part of a broader context in which it is estimated that AI could lead to the elimination of up to 200,000 jobs in the banking sector worldwide over a period of three to five years. According to a report by Bloomberg Intelligence, this phenomenon would affect approximately 40% of jobs worldwide. A spokesperson for the bank, based in Singapore, confirmed that the staff reduction would mainly occur through the termination of temporary and project contracts. "We anticipate that AI could reduce the need to renew around 4,000 temporary employees in our 19 markets," he stated in a statement to AFP. He clarified that permanent employees will not be affected and will continue in their positions. To mitigate the impact of these changes, DBS has initiated upgrade and retraining programs for approximately 13,000 employees, where more than 10,000 have already begun to acquire skills in areas such as AI and data analytics. This strategy aims to prepare the workforce for a constantly evolving environment due to automation. In light of this situation, the International Monetary Fund (IMF) has emphasized the importance of developing appropriate policies that allow for the safe and beneficial harnessing of AI's vast potential for humanity. However, experts warn that the rapid adoption of technologies can carry risks if the implications for the labor market are not adequately addressed.

Singapore's biggest bank DBS to cut 4,000 roles as it embraces AI

Singapore's biggest bank says it expects to cut 4,000 roles over the next three years as artificial intelligence (AI) takes on more work currently done by humans. "The reduction in workforce will come from natural attrition as temporary and contract roles roll off over the next few years," a DBS spokesperson told the BBC. Permanent staff are not expected to be affected by the cuts. The bank's outgoing chief executive Piyush Gupta also said it expects to create around 1,000 new AI-related jobs. It makes DBS one of the first major banks to offer details on how AI will affect its operations.

DBS Bank Trades 4,000 Workers for AI: What's Next?

However, Mr. Gupta highlighted a significant challenge, stating, 'In my 15 years of being a CEO, for the first time, I'm struggling to create jobs. So far, I've always had a line of sight to what jobs I can create. This time, I'm struggling to say how I will repurpose people to create jobs.' This statement underscores the unprecedented nature of AI's impact on employment and the difficulty of predicting future job creation in a rapidly evolving technological landscape. DBS's announcement marks a significant moment as it becomes one of the first major banks to provide concrete details on the . This move comes amidst a broader global discussion about the implications of AI on employment. The (IMF) has warned that AI is poised to affect nearly 40% of all jobs worldwide, with Managing Director Kristalina Georgieva expressing concerns that it could exacerbate inequality. Conversely, Bank of England Governor Andrew Bailey has taken a more optimistic stance, asserting that AI will not be a "mass destroyer of jobs" and that workers will adapt to collaborate with the new technology. Bailey acknowledged the inherent risks of AI but emphasized its "great potential," a sentiment echoed by DBS's commitment to creating new AI-focused roles. The proactive approach of DBS in managing adjustments through natural attrition aims to mitigate the negative impact on its employees. However, the announcement underscores the growing reality of AI's transformative power and the need for businesses and individuals to adapt to the changing nature of work. The future of and many other industries is undeniably intertwined with the rapid advancement of artificial intelligence. DBS's actions are a clear indicator of the ongoing changes that technological advances are bringing to the modern workplace and how large corporations are attempting to navigate those changes.

Singapore's biggest bank DBS to cut 4,000 roles as as it embraces AI

Singapore's biggest bank says it expects to cut 4,000 roles over the next three years as artificial intelligence (AI) takes on more work currently done by humans. "The reduction in workforce will come from natural attrition as temporary and contract roles roll off over the next few years," a DBS spokesperson told the BBC. Permanent staff are not expected to be affected by the cuts. The bank's outgoing chief executive Piyush Gupta also said it expects to create around 1,000 new AI-related jobs. It makes DBS one of the first major banks to offer details on how AI will affect its operations.

Singapore's Biggest Bank Plans 4,000 AI-Driven Job Cuts, Projects S$1B Gain

Singapore's Biggest Bank, DBS, expects to cut 4,000 roles over the next three years due to rising AI adoption. Credit: Anadolu, Getty Images. Singapore's Biggest Bank, DBS, expects to cut 4,000 roles over the next three years due to rising automation. As AI takes on more jobs traditionally performed by humans, the bank's chairman said technology's economic impact is projected to surpass one billion Singaporean dollars ($746 million) in 2025. DBS Job Cuts While DBS hasn't confirmed which roles will be affected, it said no permanent employees will lose their jobs. Instead, the planned job cuts "will come from natural attrition as temporary and contract roles roll off over the next few years," a DBS spokesperson told the BBC . Artificial intelligence is increasingly being integrated across the financial sector to streamline customer service, prevent fraud, and boost productivity. S$1 Billion AI Productivity Boost By reducing the number of workers the bank has on its payroll and equipping employees to be more productive with their time, DBS expects to generate significant savings and returns. According to DBS CEO Piyush Gupta, the "measured economic impact" of more than 800 AI models the bank uses is projected to exceed S$1 billion this year, the BBC reported. Meanwhile, research by PYMNTS shows that the technology is most commonly used for fraud detection and risk management, where 64% of finance leaders reported using AI. One area where the technology could have a major impact on jobs is customer service. When StrataDecision surveyed leaders in the banking and financial services sector, just 12% said their institutions use AI tools for customer service. Unlike the clunky chatbots and interactive voice response systems of the past, modern AI agents can often perform the same tasks as human call center workers. Call centers have some extremely high attrition rates -- between 30% and 45%, according to one estimate. This makes them an ideal target for the kind of layoff-free job cuts targeted by DBS.

DBS to 'shrink workforce' by 4,000 in 3 years due to AI adoption: CEO Gupta

DBS Group plans to reduce its workforce by 10% over the next three years due to increased AI adoption. The bank will primarily target contract and temporary staff for reduction and also rely on natural attrition. Despite AI's challenges, DBS is expanding its use across various operations.Global banking major DBS Group expects a 10 per cent reduction in its workforce over the next three years as artificial intelligence adoption goes deeper into the operations, its chief executive Piyush Gupta said on Monday. Gupta said AI is different and unlike any other technologies adopted in the past, and added that he is struggling to create new jobs for the first time in his over 15-year stint at the helm of the Singaporean bank. "This year, my current projection is that in the next three years, we are going to shrink our workforce by 4,000 or 10 per cent," Gupta said, speaking at the Indian IT industry lobby group Nasscom event here. Attributing his outlook to the advent of AI, Gupta said, "AI is very powerful. It can self-create and also mimick". Pointing out that AI is "different", Gupta said in the last ten years, there have not been any job cuts in the group. He reminisced that in 2016-17, the bank embarked on a digital transformation which was seen impacting 1,600 people but added that almost all of them were repurposed in consultation with unions and other representatives. However, the current challenge in the age of AI is also revolving around how to repurpose the workforce. In a statement issued later, DBS Bank clarified that the reduction of 4,000 employees over the next three years will primarily involve contract and temporary staff. Natural attrition will also lead to a workforce reduction, the bank said, adding that as temporary and contract roles roll off over the coming years, the base will reduce. Gupta said the bank has been cautious about relying fully on AI when it comes to customer outreach because of aspects like hallucinations but added that it has done its first use case on reaching customer directly and plans to broadbase it by end of the year. DBS started implementing generative AI solutions two years back, and the entire benefits of generative AI are yet to be seen, Gupta said. The group is using AI across the business now, including customer outreach, credit underwriting and also hiring, Gupta said, adding that its first brush with AI in 2012-13 was not very successful.

DBS CEO Sees Job Cuts of 4,000 Temp Staff as AI Replaces Roles

DBS Group Holdings Ltd. plans to cut around 4,000 of its contract and temporary staff workforce over the next three years as artificial intelligence increasingly takes on roles carried out by human beings. Southeast Asia's largest lender has approximately 8,000 to 9,000 of such staff, according to Chief Executive Officer Piyush Gupta replying to a query from Bloomberg News. He confirmed a Press Trust of India news agency report which said the bank will trim its workforce following further adoption of AI across its business.

Employees at Singapore's biggest bank are set to lose their jobs to the AI revolution -- and that worries me

Job cuts at DBS will take the form of "natural attrition [...] over the next few years" as temporary and contract workers are not rehired Singapore's largest bank, DBS, has confirmed it will continue using AI tools by cutting as many as 4,000 roles (9.7% of DBS' total workforce), so the technology can take a larger role in its operations. A DBS spokesperson told BBC News, "reduction in workforce will come from natural attrition as temporary and contract roles roll off over the next few years." The spokesperson did not confirm which roles will be affected, or strictly how many will be cut in Singapore alone, but it's understood that permanent roles won't be affected. As a silver lining, CEO Piyush Gupta, who is set to leave the company in March 2025, said the bank expects to create around 1,000 jobs built around working with AI. In 2024, Gupta said DBS' AI push had been ongoing for at least a decade, and it now deploys, "over 800 AI models across 350 use cases, and expect the measured economic impact of these to exceed S$1bn ($745m USD, or £592m) in 2025." Experts are mixed on whether machine-learned large language models (LLMS -- what 'artificial intelligence' has largely come to mean to the layperson) will drastically change the state of employment and the way we live our lives. In 2024, the IMF's managing director Kristalina Georgieva estimated AI technology would come to affect 40% of jobs worldwide and "likely worsen inequality." However, Andrew Bailey, the governor of the Bank of England (BoE) also told the BBC in 2024 he thought that AI wouldn't be a "mass destroyer of jobs", but that "there is great potential with it. In case you missed it, vast swathes of artists might want a word with him. For me, It's not entirely clear whether an AI-led 'human skills revolution' is on the way. On Valentine's Day, I reported on, amongst other things, survey findings from antivirus software from Norton that found 62% of respondents wouldn't be able to spot AI content in an online dating profile. If they can't spot or understand the technology, they won't grow with it at work, and that will make them seem even more expendable to executives -- who you never hear about being replaced with AI, oddly enough.

DBS to shrink workforce by 10% as AI takes hold

This content has been selected, created and edited by the Finextra editorial team based upon its relevance and interest to our community. Speaking at an event organised by Nasscom, DBS Ceo Piyush Gupta said that in 2016-17 the bank had identified 1600 jobs that were redundant due to increasing automation. While some of them retired and many others quit, around 1200 of them were absorbed in other roles. However, the next round of job cuts due to automation is expected to be far more widespread, because "AI is different." he says, pointing out that the technology is not a tool that requires human oversight. "AI can actually self-create and can manipulate," he says. The bank has onboarded 1000 people to work on AI projects, putting the technology to use to manage frauds, scams and risk, for portfolio management and to onboard customers. "Our customer engagement rates are up...the volume of business that customers do is also up," he says. "Our ability to underwrite customers and bring them on board changes dramatically."

DBS Group set to cut 4,000 contract, temporary jobs in next 3 years

Feb 24 (Reuters) - DBS Group (DBSM.SI), opens new tab said on Monday it plans to cut 4,000 of its contract and temporary staff workforce as it expects artificial intelligence (AI) increasingly take on roles carried out by humans. In a response to a Bloomberg query, DBS confirmed a Press Trust of India news agency report which said the bank will trim its workforce as it further adopts AI across its business, according to chief executive officer Piyush Gupta. "The reduction in workforce will come from natural attrition as temp and contract roles roll off over the next few years," a spokesperson from DBS said in an emailed response to Reuters. DBS CEO Piyush Gupta is set to be succeeded by Tan Su Shan on March 28 to lead Southeast Asia's biggest bank. Gupta said the reduction in the workforce is set to happen over the next three years, adding that permanent staff will not be affected. Reporting by Shivangi Lahiri in Bengaluru; Editing by Vijay Kishore Our Standards: The Thomson Reuters Trust Principles., opens new tab Suggested Topics:European Markets