Singapore's largest bank, DBS, recently announced plans to cut approximately 4,000 jobs over the next three years. This is attributed to the increasing role of artificial intelligence (AI) in replacing human workers in various tasks. The bank's spokesperson stated that the reduction will primarily occur through natural attrition, meaning the bank will reduce its workforce as temporary and contract positions expire. Importantly, DBS doesn't plan to lay off permanent employees.
Image Source Note: Image generated by AI, licensed through Midjourney
DBS currently employs approximately 41,000 people, including 8,000 to 9,000 temporary and contract workers. Despite concerns raised by the job cuts, the outgoing CEO, Piyush Gupta, noted that the bank anticipates creating around 1,000 new AI-related roles to adapt to technological advancements.
Over the past decade, DBS has been actively developing and applying AI technology, currently deploying over 800 AI models across 350 different use cases. Gupta stated that these AI technologies are projected to generate over S$1 billion (approximately US$745 million) in economic benefits for the bank by 2025.
With the rapid advancement of AI, various industries face the risk of job displacement. The International Monetary Fund (IMF) predicted in 2024 that nearly 40% of global jobs could be affected by AI. Furthermore, IMF Managing Director Kristalina Georgieva noted that in most scenarios, AI could exacerbate social inequality.
However, Bank of England Governor Andrew Bailey, in an interview with the BBC, suggested that AI won't be a "massive job destroyer," and that human workers will gradually adapt to collaborating with new technologies, leveraging their potential to create new opportunities.
DBS's job reduction plan and the widespread adoption of AI mark a significant transformation within the financial sector. The future evolution of the banking industry remains to be seen.
Key Highlights:
🌟 DBS plans to cut 4,000 jobs over the next three years, primarily through natural attrition.
💼 The bank anticipates creating approximately 1,000 new AI-related positions to adapt to technological advancements.
📈 The widespread adoption of AI is projected to affect nearly 40% of global jobs and potentially exacerbate social inequality.