AI to Replace 4,000 Jobs at DBS Bank Over the Next Three Years

Singapore’s largest bank, DBS, has announced plans to cut 4,000 jobs over the next three years, citing the rise of artificial intelligence (AI) as the primary driver of the reductions.

The bank explained that most of the cuts would result from natural attrition, as temporary and contract roles expire in the coming years.

A spokesperson for DBS assured the public that permanent employees would not be impacted by these cuts.

In fact, the bank anticipates creating around 1,000 new positions related to AI as it expands its technological capabilities.

This move positions DBS as one of the first major financial institutions to openly detail how AI will reshape its workforce.

While DBS did not specify the exact roles that would be affected or how many jobs would be lost in Singapore, the bank currently employs around 41,000 people, with approximately 8,000 to 9,000 working in temporary or contract positions.

The bank’s outgoing CEO, Piyush Gupta, explained that DBS has been integrating AI into its operations for over a decade, with more than 800 AI models deployed across 350 use cases.

The economic impact of these AI initiatives is expected to exceed S$1 billion ($745 million; £592 million) by 2025.

The announcement comes amidst growing debates about AI’s impact on the job market.

The International Monetary Fund (IMF) recently reported that AI is expected to affect nearly 40% of jobs globally.

IMF Managing Director Kristalina Georgieva warned that AI could exacerbate inequality, while Bank of England Governor Andrew Bailey noted the potential for both risks and rewards with AI, emphasizing that human workers will adapt to new technologies.

As DBS prepares for the future under new leadership, with Tan Su Shan set to replace Gupta as CEO at the end of March, it is clear that AI will play a central role in shaping the future of work in the banking sector.