Singapore’s largest bank, DBS, plans to reduce its workforce by 4,000 jobs over the next three years as artificial intelligence (AI) takes on more tasks. This move highlights the growing impact of AI in the financial sector and how it is reshaping the job market.
DBS is one of the first major banks to reveal how AI will change its staff structure. The bank expects the job cuts to happen naturally as temporary and contract roles phase out. A spokesperson confirmed that full-time employees will not lose their jobs. Instead, the bank will adjust its workforce gradually, ensuring a smooth transition.
DBS and AI Integration
DBS has between 8,000 and 9,000 temporary and contract workers. Its total workforce is about 41,000 employees. AI will take over repetitive and data-heavy tasks, making some roles unnecessary. However, DBS will create about 1,000 new positions focused on AI and technology.
Outgoing CEO Piyush Gupta stated that DBS has been developing AI capabilities for more than ten years. The bank currently operates over 800 AI models across 350 different applications. These AI tools help with customer service, fraud detection, and risk management. Gupta predicts that these AI-driven systems will contribute more than S$1 billion ($745 million; £592 million) to the bank’s economy by 2025.
Mr. Gupta will step down as CEO at the end of March. His deputy, Tan Su Shan, will take over as the new leader. She will be responsible for ensuring that AI enhances efficiency without disrupting the bank’s overall workforce stability.
The Global AI Job Shift
The rapid rise of AI is changing industries worldwide. In 2024, the International Monetary Fund (IMF) reported that AI could affect nearly 40% of jobs across the globe. While some roles will disappear, new job opportunities in AI development and management will emerge.
IMF Managing Director Kristalina Georgieva has warned that AI could increase economic inequality. She stated that lower-skilled workers are at higher risk of job displacement. At the same time, skilled professionals who work with AI will see increased demand.
Meanwhile, Andrew Bailey, Governor of the Bank of England, believes AI will not destroy jobs on a large scale. He argues that AI will instead change the nature of work. He expects workers to adapt by learning new skills and collaborating with AI-driven systems.
DBS’ Approach to AI-Driven Job Changes
Unlike some companies that lay off workers suddenly, DBS aims to manage the transition smoothly. The bank’s approach focuses on retraining staff and creating new roles in AI and digital banking.
By investing in AI, DBS plans to enhance customer service, making transactions faster and more secure. AI-driven chatbots and automated financial advisors will help customers manage their accounts more efficiently. These tools will also help detect fraud and reduce risks in online banking.
Employees who work in administrative and data-entry roles are more likely to be affected. However, those who develop AI systems or work in cybersecurity will see new opportunities.
The Bigger Picture
The financial sector is not the only industry facing AI-related changes. Many companies worldwide are integrating AI into their operations. Tech firms, healthcare providers, and manufacturing companies are all using AI to improve efficiency.
While some workers fear job losses, experts argue that AI will create more opportunities in the long run. Many businesses are focusing on upskilling employees rather than replacing them. Companies that successfully integrate AI while supporting their workforce will have a competitive advantage.
For DBS, AI is a key part of its future strategy. The bank aims to lead in digital banking while ensuring a balance between automation and human expertise. Its efforts to train employees and create new AI-focused roles show a commitment to responsible AI adoption.
DBS’ decision to phase out 4,000 jobs reflects the growing influence of AI in the financial sector. However, the bank’s plan to add 1,000 AI-related jobs ensures that employees have new opportunities. As AI continues to evolve, businesses must find ways to integrate technology while supporting their workforce.
The rise of AI-driven automation is a global trend, and its impact on jobs will depend on how companies and workers adapt. While some roles will disappear, new opportunities will arise for those willing to learn new skills.
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