Singapore’s largest bank, DBS, has announced it expects to cut 4,000 jobs over the next three years as artificial intelligence (AI) increasingly replaces tasks traditionally carried out by humans.
A DBS spokesperson told the BBC, “The workforce reduction will occur through natural attrition as temporary and contract roles phase out in the coming years.” Permanent staff members are not expected to be impacted by these changes. Additionally, the bank’s outgoing CEO, Piyush Gupta, mentioned that DBS plans to create around 1,000 new jobs related to AI.
DBS becomes one of the first major financial institutions to outline how AI will reshape its operations. However, the bank did not specify how many roles in Singapore would be affected or which positions would be cut.
Currently, DBS employs approximately 41,000 people, with between 8,000 and 9,000 in temporary and contract positions. Last year, Gupta shared that DBS has been investing in AI for over a decade, deploying more than 800 AI models across 350 use cases. He also projected that the economic impact of these AI initiatives would exceed S$1 billion (around $745 million) by 2025.
Gupta, who is set to leave the bank at the end of March, will be succeeded by Deputy CEO Tan Su Shan.
The rise of AI technology has sparked debate about its potential effects on jobs globally. The International Monetary Fund (IMF) warned in 2024 that AI could impact nearly 40% of all jobs worldwide, with managing director Kristalina Georgieva stating that AI could exacerbate inequality. However, Andrew Bailey, Governor of the Bank of England, has suggested that while AI presents risks, it will not be a “mass destroyer of jobs.” He emphasized that human workers would adapt and learn to collaborate with new technologies, which also offer significant potential.