The Development Bank of Singapore, DBS, has announced the replacement of 4,000 human roles with artificial intelligence (AI) as part of its digital transformation strategy. The shift represents a major step in integrating AI technology into the banking sector, promising great efficiency and cost-effectiveness.
According to the reports, the affected positions will primarily consist of temporary or contract staff; these cuts will not impact the permanent staff.
Piyush Gupta, CEO of Singapore’s largest bank, said – “the bank expects to create around 1,000 new job opportunities related to AI. This development makes DBS one of the first major banks to provide insight into the effects of AI on its operations. However, the company has not disclosed the number of jobs that will be cut in Singapore specifically.”
A DBS spokesperson elaborated, “Over the next three years, we envisage that AI could reduce the need to renew about 4,000 temporary/contract staff across our 19 markets working on specific projects”. The spokesperson continued, “As such, we expect the reduction in workforce will come from natural attrition as these temporary and contract roles are completed over the next few years.”
Asia’s banking sector is rapidly growing, mainly due to the use of AI. AI in banking is shaping finance services and leading to all new levels. Gupta revealed that DBS is investing in AI technologies. He stated, “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”.
DBS, in total, has around 41,000 workforces, out of which 8,000 and 9,000 are temporary or contract workers.
Piyush Gupta also disclosed that his tenure will end in March, and current Deputy CEO Tan Su Shan is set to succeed him.
