Singapore's largest bank, DBS, has announced a reduction of 4,000 roles over the next three years as it increasingly relies on artificial intelligence (AI) technology to perform tasks typically handled by employees. According to a spokesperson from DBS, the workforce decrease will mainly stem from natural attrition, which involves temporary and contract positions concluding over this timeframe. Importantly, permanent staff positions are not anticipated to be impacted by these reductions. Outgoing CEO Piyush Gupta highlighted that the bank plans to generate around 1,000 new jobs related to AI, indicating a shift in job types rather than an overall dismantling of employment opportunities.
**AI Revolution: Major Bank in Asia Expected to Cut 4,000 Jobs Over the Next Three Years**
**AI Revolution: Major Bank in Asia Expected to Cut 4,000 Jobs Over the Next Three Years**
A significant transition in Singapore's banking sector sees AI stepping in as the workforce begins to shrink.
This announcement makes DBS one of the foremost financial institutions to detail the implications of AI on its workforce. Though the bank did not specify the number of job cuts that would occur within Singapore or which specific roles might be affected, it does employ approximately 41,000 individuals, including 8,000 to 9,000 temporary and contract workers. DBS has been actively developing AI technologies for over ten years, reportedly implementing more than 800 AI models across approximately 350 use cases. The economic impact of these advancements is projected to surpass S$1 billion (around $745 million) by 2025.
The rise of AI has ignited discussions surrounding its potential advantages and drawbacks. In 2024, the International Monetary Fund (IMF) warned that nearly 40% of jobs worldwide could be influenced by AI technologies. Kristalina Georgieva, the IMF's managing director, cautioned that scenarios indicate AI may exacerbate existing inequalities. However, Bank of England Governor Andrew Bailey emphasized the importance of adaptability, stating that while AI presents risks, it also harbors significant potential for economic growth. With the impending retirement of Piyush Gupta at the end of March, Deputy CEO Tan Su Shan will take over leadership in navigating these transformative changes at DBS.
The rise of AI has ignited discussions surrounding its potential advantages and drawbacks. In 2024, the International Monetary Fund (IMF) warned that nearly 40% of jobs worldwide could be influenced by AI technologies. Kristalina Georgieva, the IMF's managing director, cautioned that scenarios indicate AI may exacerbate existing inequalities. However, Bank of England Governor Andrew Bailey emphasized the importance of adaptability, stating that while AI presents risks, it also harbors significant potential for economic growth. With the impending retirement of Piyush Gupta at the end of March, Deputy CEO Tan Su Shan will take over leadership in navigating these transformative changes at DBS.
