Banking Shake-Up: DBS to Cut 4,000 Jobs as AI Replaces Humans

AI Takes Over: DBS Bank to Cut 4,000 Jobs as Automation Rises

Singapore’s largest bank, DBS, has announced plans to cut around 4,000 jobs over the next three years as artificial intelligence (AI) continues to reshape the financial sector. The affected roles will primarily be temporary and contract positions, while permanent staff will not be impacted.

The shift comes as DBS leverages AI to improve efficiency, making it one of the first major banks to outline the direct impact of AI on its workforce. Alongside the job cuts, the bank plans to create 1,000 AI-related jobs, highlighting a transformation rather than a complete job displacement.

AI Reshaping the Banking Industry

DBS, which operates across 19 markets, currently employs between 8,000 and 9,000 temporary and contract workers. The bank’s total workforce stands at around 41,000. Instead of immediate layoffs, DBS states the reductions will come through natural attrition as AI-driven processes replace manual tasks.

A DBS spokesperson clarified the move, stating:

"Over the next three years, we envisage that AI could reduce the need to renew about 4,000 temporary/contract staff across our markets working on specific projects."

This means that once these projects conclude, the roles will not be replaced, allowing for a gradual shift towards AI-led operations.

DBS Bank’s AI Investment and Expansion

DBS has been working with AI for over a decade and currently deploys over 800 AI models across 350 use cases. The bank’s CEO, Piyush Gupta, has stated that the economic impact of these AI solutions is expected to exceed S$1 billion ($745 million) by 2025.

As part of its commitment to AI, DBS is also creating 1,000 new AI-related jobs, ensuring that employees with expertise in artificial intelligence, machine learning, and data science will be in high demand. This reflects a broader industry shift where AI is augmenting jobs rather than completely eliminating them.

Global Impact of AI on Jobs

The DBS announcement aligns with global concerns over AI's impact on employment. According to the International Monetary Fund (IMF), nearly 40% of all jobs worldwide could be affected by AI in some capacity. The IMF’s Managing Director, Kristalina Georgieva, has warned that AI could lead to increased inequality, as highly skilled workers benefit while lower-skilled roles become redundant.

However, not all experts believe AI will lead to mass job losses. Andrew Bailey, the Governor of the Bank of England, stated that AI is not a “mass destroyer of jobs”, but rather a tool that will require human workers to adapt and evolve.

Leadership Changes at DBS

This AI-driven workforce transition comes as DBS prepares for a leadership change. CEO Piyush Gupta is set to step down at the end of March 2025, with Tan Su Shan, the current Deputy Chief Executive, taking over. As the bank moves forward with its AI strategy, the transition in leadership will play a key role in shaping its future workforce policies.

The Future of AI in Banking

With DBS taking a lead in integrating AI into its operations, the banking sector may see similar changes across the globe. AI-driven automation is expected to streamline banking services, reduce operational costs, and enhance efficiency. However, the challenge remains in balancing technological advancements with job security and workforce transitions.

As AI continues to redefine industries, the workforce of the future may look vastly different, with a stronger emphasis on AI-related skills and digital expertise.