Major bank to eliminate 4,000 roles over next three years AI replaces humans
This is one of the first major banks to announce how AI will impact its workforce
Singapore's biggest bank expects to cut 4,000 roles as AI reshapes its workforce.
AI is proving more and more that it can handle a plethora of jobs we put it in, from basic admin to complex tasks.
We’ve already seen it take over labour work and secretarial roles - and now even jobs that require critical thinking aren’t safe.
One report found that AI threatens to replace mid-level software engineers and other Ph.D.-level positions.
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And another report by The Institute for Public Policy Research (IPPR) said that in the 'worst case scenario,' eight million UK jobs could be lost to artificial intelligence. Not to mention, some humanoid AI robots are becoming scarily more realistic in their roles as well.
Now, DBS - a major bank in Asia - expects to cut 4,000 job roles over the next three years as technology takes over more tasks that are handled by humans.
"The reduction in workforce will come from natural attrition as temporary and contract roles roll off over the next few years," a DBS spokesperson told the BBC.
Permanent staff are not expected to be affected by the cuts. On a more surprising note, 1,000 new AI-related jobs are anticipated, according to the bank's CEO Piyush Gupta.
This announcement makes DBS one of the first major banks to discuss how AI will impact its infrastructure openly. However, the bank was not specific on which roles would be affected.
DBS currently employs around 41,000 people, which includes 8,000 to 9,000 temporary and contract workers. Gupta, who will step down at the end of March and be succeeded by deputy chief executive Tan Su Shan, said DBS had been working on AI for over a decade.
"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," he added.
Nevertheless, AI’s growing presence in the workforce continues to ignite fear worldwide.
The International Monetary Fund (IMF) recently reported that AI could impact nearly 40% of jobs worldwide, with managing director Kristalina Georgieva warning that 'in most scenarios, AI will likely worsen overall inequality.'
However, not everyone believes AI will wipe out jobs entirely. The Governor of the Bank of England, Andrew Bailey, argued that AI will not be a 'mass destroyer of jobs' and that human workers will adapt to new technology.
A 'Future of Jobs' report by the World Economic Forum (WEF) found that 77% of large companies are preparing to retrain and upskill their employees between 2025 and 2030 so they can work alongside AI rather than be replaced by it.
“Advances in AI and renewable energy are reshaping the (labour) market — driving an increase in demand for many technology or specialist roles while driving a decline for others, such as graphic designers," the WEF described.