Singapore‘s largest bank has announced plans to reduce its workforce by 4,000 positions over the next three years. The decision is attributed to artificial intelligence’s increasing capabilities in performing tasks traditionally handled by human employees.
A spokesperson for DBS informed the BBC that the workforce reduction will occur through natural attrition as temporary and contract positions conclude in the coming years.
The cuts are not anticipated to impact permanent staff. Piyush Gupta, the bank’s outgoing chief executive, announced that the institution anticipates creating approximately 1,000 new jobs related to artificial intelligence.
DBS stands out as one of the pioneering major banks that has disclosed insights on the impact of AI on its operations.
The company has not disclosed the number of jobs eliminated in Singapore or specified which positions will be impacted.
DBS currently employs 8,000 to 9,000 temporary and contract workers, for approximately 41,000 individuals.
In a statement made last year, Mr Gupta revealed that DBS had been engaged in AI development for over ten years.
“Currently, we have deployed more than 800 AI models across 350 use cases, and we anticipate that the economic impact of these initiatives will surpass S$1 billion ($745 million; £592 million) by 2025,” he stated.
Mr. Gupta is scheduled to depart the firm at the end of March. Tan Su Shan, currently serving as the deputy chief executive, will take over the position.
The rapid expansion of AI technology has drawn significant attention to its advantages and potential dangers. In a statement released in 2024, the International Monetary Fund (IMF) indicated that this technological shift is poised to impact nearly 40% of jobs globally.
Kristalina Georgieva, the IMF’s managing director, stated that “in most scenarios, AI will likely worsen overall inequality.”
Andrew Bailey, the governor of the Bank of England, stated in an interview with the BBC last year that artificial intelligence is unlikely to serve as a “mass destroyer of jobs.” He emphasised that human workers will adapt and collaborate with emerging technologies.
Mr Bailey acknowledged the inherent risks associated with AI yet emphasised that it holds significant potential.
