DBS, Singapore's largest bank, announced plans to cut approximately 4,000 roles over the next three years as it integrates artificial intelligence into its operations. The bank currently employs around 41,000 people globally, with an additional 8,000 to 9,000 temporary and contract workers. While the specific roles and locations affected remain undisclosed, the outgoing chief executive, Piyush Gupta, emphasized the creation of about 1,000 new AI-related jobs.
DBS has been at the forefront of AI development for over a decade. Gupta highlighted the bank's commitment to innovation as they navigate this transformative period. The shift towards AI comes amid broader global trends, with the International Monetary Fund (IMF) projecting that nearly 40% of all jobs worldwide could be impacted by AI technologies by 2024.
"In most scenarios, AI will likely worsen overall inequality," said Kristalina Georgieva, managing director of the IMF.
Despite concerns about job displacement, Andrew Bailey, governor of the Bank of England, reassured that AI would not be a "mass destroyer of jobs." He anticipates that human workers will adapt and learn to collaborate with new technologies. Bailey also noted AI's significant potential, underscoring the need for balanced integration into existing systems.
DBS stands out as one of the first major banks to provide detailed insights into how AI will reshape its operations. This strategic move underscores the ongoing scrutiny of AI's benefits and risks. As the banking sector embraces technological advancements, DBS aims to leverage AI's capabilities while addressing potential challenges.
Piyush Gupta will conclude his tenure at DBS at the end of March. Tan Su Shan, the current deputy chief executive, is set to succeed him. Under her leadership, DBS is expected to continue its commitment to technological innovation and workforce adaptation.