DBS Bank to Slash 4,000 Jobs as AI Innovation Expands

DBS Bank reveals plans to cut around 4,000 positions over the next three years due to the increased integration of artificial intelligence in its operations, while promising the creation of 1,000 new AI-focused roles.

Singapore's largest bank, DBS Bank, has announced it will reduce its workforce by approximately 4,000 roles over the next three years. This decision is primarily driven by the increasing implementation of artificial intelligence (AI) technologies which are expected to take over tasks currently performed by human workers.

According to a spokesperson for DBS, the job cuts will predominantly target temporary and contract staff. This reduction is anticipated to occur through "natural attrition" as various projects reach completion, and permanent employees will not be impacted by these changes. It remains unclear how many of the cuts will happen specifically within Singapore, where the bank currently employs between 8,000 and 9,000 temporary and contract workers amid a total workforce of around 41,000.

Piyush Gupta, the bank's outgoing CEO, stated that DBS has been investing in AI for over ten years, currently utilizing more than 800 AI models across 350 use cases. Gupta projected that the economic impact of AI will surpass S$1 billion (approximately $745 million) by 2025. He will be stepping down at the end of March, with Tan Su Shan set to succeed him.

The rise of AI technology has sparked a broader discussion about its potential benefits and risks in the global job market. The International Monetary Fund (IMF) stated that in 2024, AI could influence nearly 40% of all jobs globally, raising concerns about increased inequality. However, the governor of the Bank of England, Andrew Bailey, suggested that while AI may disrupt some roles, it also presents opportunities for human workers to adapt and collaborate with emerging technologies.