Singapore’s largest bank, DBS, has announced plans to reduce approximately 4,000 positions over the next three years as artificial intelligence (AI) assumes more responsibilities currently handled by humans.
The restructuring will impact temporary and contract workers, according to a bank spokesperson, with the decrease in the workforce resulting from «natural attrition» as projects reach completion. Permanent employees will not be affected by the layoffs. Outgoing CEO Piyush Gupta also mentioned the creation of around 1,000 new AI-related roles, positioning DBS as one of the pioneering banks to disclose how AI will impact its operations.
Details regarding the specific number of job cuts in Singapore were not disclosed by the company. The DBS spokesperson explained, «Over the next three years, we anticipate that AI could eliminate the need to renew approximately 4,000 temporary/contract positions across our 19 markets engaged in specific projects.» The reduction in workforce is expected to occur through natural attrition as these temporary and contract roles are completed over the next few years. Currently, DBS employs between 8,000 and 9,000 temporary and contract workers out of a total workforce of around 41,000 individuals.
Mr. Gupta highlighted DBS’s decade-long involvement in AI development, noting the deployment of over 800 AI models across 350 use cases. He projected the economic impact of these initiatives to surpass S$1 billion ($745 million; £592 million) by 2025. With Mr. Gupta’s impending departure from the company at the end of March, Tan Su Shan, the current deputy CEO, is set to assume the role of CEO.
The growing prevalence of AI technology has intensified discussions surrounding its benefits and risks. The International Monetary Fund (IMF) projected in 2024 that AI is poised to impact nearly 40% of all jobs globally. IMF Managing Director Kristalina Georgieva cautioned that in most scenarios, AI may exacerbate overall inequality.
In contrast, the governor of the Bank of England, Andrew Bailey, opined that AI will not be a «mass destroyer of jobs,» asserting that human workers will adapt to collaborate with new technologies. Mr. Bailey acknowledged the risks associated with AI but emphasized its significant potential.
For more information on AI and its implications on the workforce, visit the links below:
– International Monetary Fund (IMF) statement from 2024
– Governor of the Bank of England’s interview with the BBC last year
Stay informed about the evolving landscape of AI technology and its impact on various industries.
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