Michelle ThompsonSingapore’s largest bank, DBS, plans to reduce 4,000 positions over the next three years as AI takes over tasks traditionally handled by humans.
A DBS spokesperson told the BBC that job reductions would occur through natural attrition, primarily affecting temporary and contract roles, with no impact on permanent staff. Outgoing CEO Piyush Gupta also noted that the bank expects to create around 1,000 new AI-related positions.
DBS is among the first major banks to outline AI’s impact on its workforce but did not specify how many cuts would occur in Singapore or which roles would be affected. The bank currently employs around 41,000 people, including 8,000 to 9,000 temporary and contract workers.
Mr. Gupta highlighted that DBS has been developing AI for over a decade and currently utilizes more than 800 AI models across 350 applications. The bank anticipates these initiatives will generate over S$1 billion ($745 million) in economic impact by 2025.
He is set to step down at the end of March, with Deputy CEO Tan Su Shan taking over as his successor.
The expansion of AI technology continues to spark debate about its benefits and risks. In 2024, the International Monetary Fund (IMF) warned that AI could impact nearly 40% of jobs globally, with Managing Director Kristalina Georgieva stating that AI may exacerbate inequality.
Meanwhile, Bank of England Governor Andrew Bailey told the BBC that AI is unlikely to cause widespread job losses, emphasizing that workers will adapt to evolving technologies, despite associated risks.
