DBS, Singapore's largest bank, has announced plans to reduce its workforce by approximately 4,000 roles over the next three years. This move is driven by the increasing adoption of artificial intelligence (AI) technologies, which will assume responsibilities currently handled by human employees.
The affected positions will primarily consist of temporary and contract staff, with the reduction in workforce resulting from natural attrition as projects are completed. Notably, permanent staff will not be impacted by these cuts.
According to DBS's outgoing CEO, Piyush Gupta, the bank expects to create around 1,000 new job opportunities related to AI. This development makes DBS one of the first major banks to provide insight into the effects of AI on its operations. However, the company has not disclosed the number of jobs that will be cut in Singapore specifically.
A DBS spokesperson elaborated on the workforce reduction, stating, "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 working on specific projects". The spokesperson continued, "As such, we expect the reduction in workforce will come from natural attrition as these temporary and contract roles are completed over the next few years."
Currently, DBS employs between 8,000 and 9,000 temporary and contract workers, in addition to its total workforce of around 41,000 people. Last year, Gupta revealed that DBS had been investing in AI technologies for over a decade. He noted, "We today deploy over 800 AI models across 350 use cases, and expect the measured economic impact of these to exceed S$1bn ($745m; £592m) in 2025".
As Gupta prepares to leave the firm at the end of March, current Deputy CEO Tan Su Shan is set to succeed him. The increasing prevalence of AI technology has sparked intense debate about its benefits and risks. The International Monetary Fund (IMF) has warned that AI is likely to affect nearly 40% of all jobs worldwide. IMF Managing Director Kristalina Georgieva cautioned that "in most scenarios, AI will likely exacerbate overall inequality."
from NDTV News- Special https://ift.tt/sTJyBM1
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