**The largest bank in Singapore plans to replace many roles with AI, while also creating new positions in the tech sector, in a notable shift for the banking industry.**
**Major Bank in Singapore to Trim Workforce by 4,000 as AI Takes Over**
**Major Bank in Singapore to Trim Workforce by 4,000 as AI Takes Over**
**DBS Bank anticipates significant job changes due to the rise of artificial intelligence over the next three years.**
In a landmark announcement, DBS Bank, Singapore's leading financial institution, has revealed plans to reduce its workforce by approximately 4,000 roles within the next three years due to the increasing integration of artificial intelligence (AI) into their operations. A spokesperson for DBS clarified that this reduction would primarily occur through natural attrition, affecting temporary and contract positions as they become vacant, leaving permanent employees largely unaffected.
The announcement comes from the bank's outgoing CEO, Piyush Gupta, who highlighted the company's extensive history with AI, having implemented over 800 AI models across 350 different use cases. Gupta indicated that the economic benefits of AI initiatives are projected to exceed S$1 billion (approximately $745 million) by 2025. As the bank anticipates these changes, it also expects to create around 1,000 new, AI-related jobs.
While specific details regarding the affected roles or the number of job cuts in Singapore were not disclosed, DBS Bank currently employs between 8,000 and 9,000 temporary and contract workers, alongside a total workforce of around 41,000. The transition reflects a growing trend within the banking sector, indicating how institutions are adapting to the rapid advancement of technology.
The global discussion around AI's impact is becoming increasingly relevant, with the International Monetary Fund (IMF) projecting that AI could influence nearly 40% of jobs worldwide by 2024. IMF Managing Director Kristalina Georgieva warned that such advancements could exacerbate overall inequality. Meanwhile, Bank of England Governor Andrew Bailey reiterated a more optimistic viewpoint, suggesting that while AI could bring challenges, it would not result in widespread job destruction, with workers learning to adapt alongside new technologies.
As DBS Bank enters a new era under deputy chief executive Tan Su Shan, who will assume the role of CEO after Gupta's departure at the end of March, the bank's proactive approach to integrating AI showcases both the opportunities and challenges posed by a rapidly changing workforce landscape.
