Singapore's DBS Bank to replace 4,000 employees with AI

Singapore’s largest bank, DBS, has announced plans to reduce approximately 4,000 jobs over the next three years as artificial intelligence (AI) takes on more responsibilities currently handled by humans, BBC reported.

A spokesperson confirmed that the cuts will primarily affect temporary and contract workers, with the reductions occurring through “natural attrition” as various projects conclude. Permanent employees will not be impacted by the transition.

The bank, however, plans to create around 1,000 new AI-focused positions, making it one of the first major financial institutions to provide details on how AI integration will reshape its workforce. The number of affected roles within Singapore has not been specified.

"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 stated. 

"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."

DBS currently employs between 8,000 and 9,000 temporary and contract workers, with a total workforce of approximately 41,000.

Outgoing CEO Piyush Gupta, who has led DBS’s AI strategy for over a decade, highlighted the significant economic impact AI is expected to bring. "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 noted.

Gupta is set to leave the company at the end of March, with Deputy CEO Tan Su Shan succeeding him.

The rise of AI has sparked global discussions about its impact on employment. In 2024, the International Monetary Fund (IMF) warned that AI could affect nearly 40% of jobs worldwide, with Managing Director Kristalina Georgieva stating, "In most scenarios, AI will likely worsen overall inequality."

However, Bank of England Governor Andrew Bailey previously asserted that AI would not be a “mass destroyer of jobs” but rather a tool for workers to integrate into their roles.