Artificial intelligence (AI) is transforming the business landscape, and nowhere is this more evident than in the banking sector. Singapore’s biggest bank, DBS, recently announced plans to cut around 4,000 temporary and contract roles over the next three years as AI technology takes over more tasks traditionally done by humans. However, this shift is not just about job cuts—it’s also about growth, as the bank plans to create 1,000 new AI-related roles.
DBS, Southeast Asia’s largest lender, currently employs around 41,000 people, including 8,000 to 9,000 temporary and contract workers. According to the bank, the workforce reduction will happen through “natural attrition” as certain projects conclude. While AI for work increases efficiency, permanent employees are not expected to be affected by these changes.
Outgoing CEO Piyush Gupta, who has been at the helm for 15 years, acknowledged the challenges AI presents to traditional employment structures. “For the first time, I’m struggling to create jobs. So far, I’ve always had a line of sight to what jobs I can create. This time, I’m struggling to repurpose people,” Gupta said at an industry conference in Mumbai, India.
Despite these concerns, AI and banking are becoming increasingly intertwined. DBS has been investing in AI technology for over a decade and now deploys over 800 AI models across 350 use cases. The bank expects the economic impact of these AI-driven initiatives to exceed S$1 billion ($745 million) by 2025.
Business AI is driving efficiency, improving customer experiences, and optimizing operations. While some roles are being phased out, the creation of new technologies and AI-related jobs presents an opportunity for professionals willing to adapt and learn about artificial intelligence.
DBS is not alone in this transition. A Bloomberg Intelligence report suggests that global banks may cut up to 200,000 jobs in the next three to five years due to the rise of AI technology companies. A separate study by the Institute for Public Policy Research found that up to 70% of computer-based tasks could be significantly altered or eliminated by AI.
Kristalina Georgieva, Managing Director of the International Monetary Fund (IMF), warned that AI will likely increase global inequality. However, not all experts agree. The Bank of England’s governor, Andrew Bailey, stated that AI will not be a “mass destroyer of jobs,” but rather a tool that enhances human productivity.
As AI becomes more ingrained in banking and business operations, employees must focus on learning artificial intelligence skills to stay relevant. Whether it’s upskilling in AI-related fields or understanding how to use AI tools effectively, businesses and professionals alike need to adapt to the changing landscape.
Artificial intelligence in business is here to stay, and while it’s reshaping job markets, it’s also creating new opportunities. Companies must balance the benefits of AI-driven efficiency with strategies to support their workforce during this transition.
For those wondering about AI technology and its impact on work, the key takeaway is clear: AI is transforming industries, and those who embrace and understand it will have the best opportunities in the evolving job market.
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