Singapore's largest bank, DBS, has announced plans to cut 4,000 jobs over the next three years as artificial intelligence (AI) takes over tasks currently performed by humans.
A DBS spokesperson told the BBC that the reduction in workforce would occur through natural attrition as temporary and contract roles phase out over the coming years. However, permanent employees are not expected to be affected by the job cuts.
Outgoing Chief Executive Piyush Gupta stated that the bank also plans to create approximately 1,000 new AI-related positions, making DBS one of the first major banks to provide specific details on how AI will impact its workforce and operations.
DBS did not specify how many of the job cuts would take place in Singapore or which roles would be affected. The bank currently employs between 8,000 and 9,000 temporary and contract workers, with a total workforce of around 41,000 employees.
Gupta highlighted that DBS has been working on AI for over a decade. "We currently deploy over 800 AI models across 350 use cases and expect the measured economic impact of these to exceed S$1 billion ($745 million) in 2025," he said.
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Gupta is set to step down at the end of March, with current Deputy Chief Executive Tan Su Shan set to take over his role.
The increasing use of AI in various industries has raised concerns about its impact on employment. The International Monetary Fund (IMF) stated in 2024 that AI is expected to affect nearly 40% of all jobs worldwide.
IMF Managing Director Kristalina Georgieva warned that "in most scenarios, AI will likely worsen overall inequality." Meanwhile, the Governor of the Bank of England, Andrew Bailey, told the BBC last year that AI would not be a "mass destroyer of jobs," arguing that human workers will adapt to new technologies.
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Bailey acknowledged the risks associated with AI but emphasized its potential benefits. "There is great potential with it," he said.
Source: With input from agency