Singapore-based DBS Group plans to reduce its workforce by 10% over the next three years as it intensifies its use of artificial intelligence (AI) across operations. The announcement was made by CEO Piyush Gupta during an event organized by Nasscom, highlighting AI’s growing influence in the banking sector.
AI Driving Workforce Reduction
Gupta stated that AI is unlike any other technology previously adopted, as it can self-create and manipulate, making certain job roles redundant. DBS is using AI for:
- Fraud detection, risk management, and scam prevention
- Internal job mobility and portfolio management
- Onboarding new customers and streamlining operations
Despite the 10% workforce reduction, DBS has also hired 1,000 AI specialists, indicating its focus on building AI capabilities.
Workforce Transition and Job Cuts
This transition is not DBS’s first encounter with automation-driven job losses. In 2016-17, the bank identified 1,600 redundant roles, but successfully retrained and reassigned 1,200 employees. However, Gupta acknowledged that AI’s impact this time is more profound, making it difficult to create new roles.
The 4,000 planned job cuts will primarily involve contract and temporary staff, with a significant portion expected to leave through natural attrition.
Cautious AI Adoption in Customer Outreach
While DBS is leveraging AI for multiple functions, the bank remains cautious about fully automating customer interactions due to AI’s tendency to hallucinate (generate incorrect or misleading responses). However, it has successfully tested AI-driven customer engagement and plans to expand its use by the end of 2025.
DBS Bank’s Growth Amid AI Transformation
Despite the planned workforce reduction, DBS has seen strong business growth, with its client base expanding from 6 million to 20 million. The bank, which has over 6,500 employees in India, reported an income of SGD 22.3 billion and a net profit of SGD 11.4 billion in 2024.
Conclusion
DBS Group’s AI-driven transformation highlights the dual impact of automation—enhancing efficiency while also making certain roles obsolete. As the banking sector increasingly embraces AI, balancing innovation with workforce stability remains a critical challenge.
