Singapore’s largest bank, DBS, has announced plans to reduce its workforce by 4,000 positions over the next three years, as artificial intelligence (AI) technology takes on more tasks currently being performed by human employees.
DBS Bank clarified that the 4,000 job cuts will mostly affect temporary and contract roles, which will not be renewed as AI automation is implemented. Permanent DBS Bank employees are not expected to be impacted by these AI-driven job cuts.
DBS Bank to Create 1,000 New AI-Related Jobs
As it is cutting 4,000 roles, DBS Bank also plans to create approximately 1,000 new jobs related to AI technology, reflecting the bank’s shift towards an AI-integrated workforce.
DBS Bank’s announcement makes it one of the first major banks to publicly detail the impact of AI on its operations. The bank, based in Singapore, had at the time of reportage, not specified which job roles would be affected or the breakdown of job cuts within Singapore.
DBS Bank’s outgoing CEO, Piyush Gupta, also revealed that the bank has been developing and deploying AI technology for over a decade. At the moment, DBS utilizes over 800 AI models across 350 use cases, with an expected economic impact exceeding S$1 billion by 2025.
AI’s Global Impact on Employment and Economic Inequality
The increasing use of AI technology has raised concerns about its impact on global employment. The International Monetary Fund (IMF) predicts that AI will affect nearly 40% of all jobs worldwide, potentially exacerbating economic inequality.
IMF Managing Director Kristalina Georgieva warned that AI could worsen overall inequality, while Bank of England Governor Andrew Bailey believes that AI will not be a “mass destroyer of jobs” and that human workers will adapt to work alongside the new technology.
