Bank embraces AI, lays off 4,000 staff

Singapore’s largest bank, DBS, has announced plans to reduce its workforce by approximately 4,000 roles over the next three years as artificial intelligence (AI) assumes more responsibilities currently handled by humans.

A bank spokesperson clarified that the move would primarily impact temporary and contract staff, with the reduction occurring through “natural attrition” as projects reach completion. Permanent employees will not be affected by these cuts.

Outgoing Chief Executive Piyush Gupta stated that despite the job reductions, DBS anticipates creating around 1,000 new AI-related positions, making it one of the first major financial institutions to provide specific details on AI’s impact on operations.

The bank has not disclosed how many job reductions will take place in Singapore specifically.

“Over the next three years, we envisage that AI could reduce the need to renew about 4,000 temporary/contract staff across our 19 markets working on specific projects,” a DBS spokesperson said. “As such, we expect the reduction in workforce will come from natural attrition as these temporary and contract roles are completed over the next few years.”

Currently, DBS employs between 8,000 and 9,000 temporary and contract workers, with a total workforce of approximately 41,000 employees.

Mr. Gupta, who will leave his role at the end of March, previously revealed that DBS has been integrating AI technology into its operations for more than a decade.

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“We today deploy over 800 AI models across 350 use cases, and expect the measured economic impact of these to exceed S$1 billion ($745 million; £592 million) in 2025,” he said.

Following his departure, Deputy Chief Executive Tan Su Shan is set to take over as CEO.

The increasing adoption of AI in various industries has brought both its benefits and risks into focus. In 2024, the International Monetary Fund (IMF) stated that AI is expected to impact nearly 40% of jobs globally.

IMF Managing Director Kristalina Georgieva warned that “in most scenarios, AI will likely worsen overall inequality.”

However, Bank of England Governor Andrew Bailey expressed a more optimistic outlook, telling the BBC last year that AI will not be a “mass destroyer of jobs” and that human workers will learn to integrate with new technologies.

Mr. Bailey acknowledged the risks associated with AI but emphasized that “there is great potential with it.”