As more work currently performed by humans is replaced by artificial intelligence (AI), Singapore’s largest bank says it anticipates laying off 4,000 employees over the next three years.
A DBS representative told the BBC that “natural attrition will be the cause of the workforce reduction as temporary and contract roles roll off over the next few years.”
The cuts are not anticipated to have an impact on permanent employees. Piyush Gupta, the bank’s departing CEO, added that the company anticipates adding about 1,000 new AI-related jobs.
DBS is now among the first big banks to provide information about how AI will impact its business operations.
The company did not specify which roles would be impacted or the number of jobs that would be eliminated in Singapore.
At the moment, DBS employs 8,000–9,000 contract and temporary employees. In all, the bank has about 41,000 employees.
Mr. Gupta claimed last year that DBS had been engaged in AI research for more than ten years.
“We expect the measured economic impact of these to exceed S$1bn ($745m; £592m) in 2025,” he continued, adding that we currently deploy over 800 AI models across 350 use cases.
At the end of March, Mr. Gupta is scheduled to depart the company. He will be replaced by Tan Su Shan, the current deputy chief executive.
The International Monetary Fund (IMF) stated in 2024 that AI technology is expected to impact almost 40% of all jobs globally, bringing attention to both its advantages and disadvantages.
According to Kristalina Georgieva, managing director of the IMF, “in most scenarios, AI will likely worsen overall inequality.”
Last year, Andrew Bailey, the governor of the Bank of England, told the BBC that AI will not “mass destroy jobs” and that people will learn to use new technology.
While there are risks associated with AI, Mr. Bailey asserted that “there is great potential with it.”
