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26-02-2025
SINGAPORE CITY: Singapore’s biggest bank says it expects to cut 4,000 roles over the next three years as artificial intelligence (AI) takes on more work currently done 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 media.
Permanent staff are not expected to be affected by the cuts. The bank’s outgoing chief executive Piyush Gupta also said it expects to create around 1,000 new AI-related jobs.
It makes DBS one of the first major banks to offer details on how AI will affect its operations.
The company did not say how many jobs would be cut in Singapore or which roles would be affected.
DBS currently has between 8,000 and 9,000 temporary and contract workers. The bank employs a total of around 41,000 people.
Last year, Gupta 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.
Gupta is set to leave the firm at the end of March. Current deputy chief executive Tan Su Shan will replace him.
The ongoing proliferation of AI technology has put its benefits and risks under the spotlight, with the International Monetary Fund (IMF) saying in 2024 that it is set to affect nearly 40% of all jobs worldwide.
The IMF’s managing director Kristalina Georgieva said that “in most scenarios, AI will likely worsen overall inequality”.
The governor of the Bank of England, Andrew Bailey, told media last year that AI will not be a “mass destroyer of jobs” and human workers will learn to work with new technologies.
Bailey said that while there are risks with AI, “there is great potential with it”.
IMF says AI to hit 40% of jobs & worsen inequality
Artificial intelligence is set to affect nearly 40% of all jobs, according to a new analysis by the International Monetary Fund (IMF).
IMF’s managing director Kristalina Georgieva says “in most scenarios, AI will likely worsen overall inequality”.
Georgieva adds that policymakers should address the “troubling trend” to “prevent the technology from further stoking social tensions”.
The proliferation of AI has put its benefits and risks under the spotlight.
The IMF said AI is likely to affect a greater proportion of jobs put at around 60% in advanced economies. In half of these instances, workers can expect to benefit from the integration of AI, which will enhance their productivity.
In other instances, AI will have the ability to perform key tasks that are currently executed by humans. This could lower demand for labour, affecting wages and even eradicating jobs.
Meanwhile, the IMF projects that the technology will affect just 26% of jobs in low-income countries.
It echoes a report from Goldman Sachs in 2023, which estimated AI could replace the equivalent of 300 million full-time jobs but said there may also be new jobs alongside a boom in productivity. (Int’l News Desk)
