In a move that highlights the transformative impact of artificial intelligence (AI) on the workforce, Singapore’s largest bank, DBS, has announced plans to cut up to 4,000 roles over the next three years. This significant reduction will predominantly affect temporary and contract workers, with the transition driven by AI systems taking over tasks that were traditionally handled by humans.
DBS, which employs over 40,000 staff globally, has confirmed that the cuts will occur through “natural attrition” as various projects are completed. The bank’s outgoing CEO, Piyush Gupta, explained that this move is part of the bank’s ongoing efforts to integrate AI into its operations, a strategy that began over a decade ago. The company anticipates that the automation of certain roles will lead to the elimination of these temporary and contract positions, which currently number between 8,000 and 9,000.
Gupta, who is set to step down at the end of March 2025, stated at a recent industry conference, “Over the next three years, we envisage that AI could reduce the need to renew about 4,000 temporary/contract staff across our 19 markets.” Importantly, permanent staff members will not be affected by these job reductions, with the focus being on specific roles related to projects that are being completed.
While the job cuts are a significant part of DBS’s AI adoption plan, the bank is also looking to balance this with the creation of new roles. Gupta confirmed that the bank is on track to create around 1,000 new AI-related positions, focusing on skills related to the growing field of AI, machine learning (ML), and data science. This announcement positions DBS as one of the first major global banks to openly detail the potential impacts of AI on its workforce.
The Rise of AI in Banking
DBS’s journey with AI began in 2012, but it was in recent years that the bank has aggressively ramped up its efforts, aiming to become a fully AI-powered organisation. As Gupta highlighted, AI is “different” from past technological shifts, offering capabilities that can self-create and mimic human decision-making at scale. This unique power, he argues, is why AI is expected to play such a pivotal role in shaping the future of the financial services industry.
The bank’s AI journey has seen it deploy more than 800 AI models across 350 different use cases, from customer outreach to credit underwriting, hiring processes, and even product offerings. This rapid digital transformation is expected to yield an estimated economic impact of over S$1 billion ($745 million; £592 million) by 2025, cementing DBS’s position as a leader in AI-driven banking.
Furthermore, the bank’s robust data foundation has allowed it to quickly deploy Generative AI (Gen AI) tools, with over 90% of its employees now having access to such technologies. Gupta recently noted that the bank’s AI capabilities had already reduced time-to-value from machine learning projects from 18 months to just two or three months—a remarkable achievement that has accelerated the bank’s operational efficiency.
A Changing Landscape: AI’s Effect on Global Jobs
DBS’s decision is part of a broader trend that is seeing the proliferation of AI across industries. According to the International Monetary Fund (IMF), AI is expected to affect nearly 40% of jobs worldwide, with significant disruptions in sectors that rely heavily on routine, manual tasks. However, the IMF’s managing director Kristalina Georgieva has warned that AI could exacerbate existing inequalities, particularly in developing nations, and urged global leaders to address the implications of automation in the workforce.
The conversation around AI’s impact on employment was also addressed by Andrew Bailey, Governor of the Bank of England, who stated that while AI may not be a “mass destroyer of jobs,” it will significantly change the nature of work. As Bailey put it, “Human workers will learn to work with new technologies,” emphasising the potential for a collaborative relationship between humans and AI in the workplace.
For banks like DBS, the introduction of AI offers clear benefits in terms of efficiency and cost reduction. However, it also brings with it the challenge of managing workforce transitions. As Gupta admitted, “For the first time, I’m struggling to create jobs,” illustrating the difficulty in adapting a workforce to an AI-driven environment. This highlights a crucial point in the conversation about AI: while it opens up new avenues for innovation, it also presents a significant challenge for businesses and governments in terms of reskilling and managing displaced workers.
The Future of Work at DBS
Looking ahead, DBS’s transformation offers a glimpse into the future of banking. By embracing AI and machine learning, the bank is not only improving customer service and internal operations but also positioning itself as a key player in the future of financial technology. With 1,000 new AI-related jobs on the horizon, DBS is clearly investing in building the workforce of tomorrow—one that is well-equipped to thrive in an increasingly digital economy.
As AI continues to disrupt industries globally, companies like DBS are at the forefront of shaping how technology and humans will collaborate in the future of work. The bank’s approach, however, will undoubtedly prompt other major players in the financial sector to rethink their own AI strategies and workforce planning.
For now, the reduction of 4,000 roles might be seen as a necessary step towards efficiency and modernisation, but the true test will be how companies balance the rise of automation with the need for human talent in an evolving landscape.
In a world where AI is reshaping how we work and live, DBS’s bold move is a clear indication that the future of banking—and indeed, many other industries—is already here.
