Singapore’s largest bank DBS has announced a plan to reduce its workforce with around 4,000 roles in the next three years. The move is inspired to increase Artificial Intelligence (AI) technologies, which will currently assume responsibilities handled by human employees.
The affected positions will mainly consist of temporary and contract workers, which will result in a decrease in the workforce as a result of natural attraction due to the completion of projects. In particular, permanent employees will not be affected by these cuts.
According to DBS outgoing CEO, Piyush Gupta, the bank hopes that about 1,000 new job opportunities related to AI will be created. This development makes DBS one of the first major banks to provide insights into the effects of AI on its operation. However, the company has not disclosed the number of jobs to be cut specifically in Singapore.
A DBS spokesperson explained on the lack of the workforce, “In the next three years, we hypothesize that AI can reduce the need to renew about 4,000 temporary/contract employees in our 19 markets working on specific projects Is”. The spokesperson continued, “As, as we hope the workforce decrease will come naturally as these temporary and contract roles are completed in the next few years.”
Currently, DBS works between 8,000 and 9,000 temporary and contract workers, in addition to the total workforce of around 41,000 people. Last year, Gupta revealed that DBS had been investing in AI technologies for more than a decade. He said, “We today deploy more than 800 AI models in 350 use cases, and in 2025 expect the measured economic impact for more than $ 1bn ($ 745m; £ 592m)”.
As Gupta prepares to leave the firm in late March, the current deputy CEO Tan Su Shaan is ready to succeed. The increasing prevalence of AI technology has led to an intense debate about its benefits and risks. The International Monetary Fund (IMF) has warned that AI is likely to affect about 40% of all jobs worldwide. IMF Managing Director Christalina Jorvaniwa warned that “in most of the scenarios, AI would probably increase overall inequality.”