Singapore’s largest bank, DBS, has announced plans to reduce 4,000 jobs over the next three years as artificial intelligence (AI) automates more tasks currently handled by human workers.
A DBS spokesperson told the BBC that the workforce reduction will occur through natural attrition, primarily affecting temporary and contract positions, while permanent staff will remain unaffected.
Despite the job cuts, DBS will create approximately 1,000 AI-related roles, making it one of the first major banks to outline how AI will reshape its workforce.
AI’s Growing Role at DBS
The bank, which employs around 41,000 people, currently has between 8,000 and 9,000 temporary and contract workers. However, it has not specified how many positions in Singapore will be affected.
Outgoing CEO Piyush Gupta revealed that DBS has been developing AI capabilities for over a decade, with over 800 AI models deployed across 350 use cases. The bank expects AI-driven efficiencies to generate an economic impact exceeding S$1 billion ($745 million) by 2025.
Gupta will step down at the end of March, with deputy CEO Tan Su Shan set to take over.
Global AI Job Impact
The rise of AI has sparked debates about its effects on employment. In 2024, the International Monetary Fund (IMF) projected that AI will impact nearly 40% of jobs worldwide, with managing director Kristalina Georgieva warning that it could worsen inequality.
However, Andrew Bailey, governor of the Bank of England, argued that AI will not be a “mass destroyer of jobs”, emphasizing that human workers will adapt to new technologies.
Key Takeaways
- DBS to cut 4,000 jobs via natural attrition, mainly contract roles
- 1,000 new AI-related jobs will be created
- AI expected to drive over S$1 billion in economic impact by 2025
- DBS has 800+ AI models across 350 use cases
- IMF warns of AI’s impact on jobs, but Bank of England sees potential
As AI continues to reshape the financial sector, DBS’s transformation signals a broader shift in how banks leverage technology to enhance efficiency and innovation.
