A major bank in Asia is set to cut 4,000 jobs as AI takes over human roles

Singapore’s largest bank, DBS, has announced plans to cut 4,000 roles over the next three years as artificial intelligence (AI) takes over tasks currently performed by humans. A spokesperson for the bank explained that the job reduction would mainly come from natural attrition as temporary and contract positions expire in the coming years. Permanent staff are not expected to be impacted by the cuts. Additionally, DBS plans to create around 1,000 new roles focused on AI.

This makes DBS one of the first major banks to outline the impact of AI on its workforce. However, the bank has not disclosed how many jobs will be cut in Singapore or which positions will be affected. Currently, DBS employs between 8,000 and 9,000 temporary and contract workers, with a total workforce of around 41,000.

DBS has been investing in AI for over a decade, with the outgoing CEO, Piyush Gupta, noting that the bank now deploys over 800 AI models across 350 use cases. The economic impact of these initiatives is expected to exceed S$1 billion ($745 million; £592 million) by 2025.

Mr. Gupta will step down at the end of March, and Deputy CEO Tan Su Shan will succeed him.

The rise of AI technology has sparked widespread debate about its potential benefits and risks. The International Monetary Fund (IMF) warned in 2024 that AI could impact nearly 40% of jobs globally, with IMF Managing Director Kristalina Georgieva stating that AI could exacerbate inequality. Meanwhile, Andrew Bailey, Governor of the Bank of England, assured that AI would not be a “mass destroyer of jobs” and that workers will adapt to new technologies, which hold significant potential despite the associated risks.