AI Set to Replace Humans in 4,000 Roles at DBS Bank

Last Updated on February 26, 2025 by SPN Editor

DBS, the largest bank in Singapore, has unveiled a plan to reduce its workforce by roughly 4,000 roles over the next three years. This decision stems from the increased use of artificial intelligence technologies, which will assume tasks currently performed by human employees at the DBS Bank. The roles affected will mainly be those of temporary and contract staff, with the workforce reduction occurring naturally as projects conclude. Importantly, permanent staff will not be affected by these cuts.

DBS’s outgoing CEO, Piyush Gupta, revealed that the bank expects to create around 1,000 new job opportunities related to AI. This development makes DBS Bank 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 Bank spokesperson elaborated on the workforce reduction, stating, “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.” Currently, DBS employs between 8,000 and 9,000 temporary and contract workers, in addition to its total workforce of around 41,000 people.

Last year, Gupta revealed that DBS Bank had been investing in AI technologies for over a decade. He noted, “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.” As Gupta prepares to leave the firm at the end of March, current Deputy CEO Tan Su Shan is set to succeed him.

The increasing prevalence of AI technology has sparked intense debate about its benefits and risks. The International Monetary Fund (IMF) has warned that AI is likely to affect nearly 40% of all jobs worldwide. IMF Managing Director Kristalina Georgieva cautioned that “in most scenarios, AI will likely exacerbate overall inequality”.

DBS Bank’s decision to embrace AI and reduce its workforce is part of a broader trend in the banking industry. A Bloomberg Intelligence report last month indicated that banks worldwide could cut as many as 200,000 positions in the next three to five years due to AI advancements. This shift towards automation is driven by the need for increased efficiency, cost reduction, and improved customer service.

While the move to AI-driven operations is expected to bring significant benefits, it also raises concerns about job displacement and the future of work. The affected employees, primarily temporary and contract staff, will face uncertainty as their roles are phased out. However, DBS has emphasized its commitment to upskilling and reskilling its workforce. The bank has identified around 13,000 staff for upskilling or reskilling, and to date, over 10,000 have commenced their respective learning roadmaps, including on skills such as AI and data.

The transition to AI-driven operations is not without its challenges. The integration of AI technologies requires substantial investment in infrastructure, training, and change management. Additionally, there are ethical considerations related to the use of AI, including data privacy, algorithmic bias, and the potential for job losses. As AI becomes more prevalent, it is crucial for organizations to address these issues and ensure that the benefits of AI are distributed equitably.

DBS’s move to reduce its workforce through AI adoption is a significant milestone in the banking industry. It highlights the transformative potential of AI and its ability to reshape traditional business models. However, it also underscores the need for a balanced approach that considers the impact on employees and the broader society.

As DBS Bank transitions to AI-driven operations, it will be essential for the bank to maintain transparency and open communication with its employees. Providing support and resources for upskilling and reskilling will be critical to ensuring a smooth transition. Additionally, engaging with stakeholders, including regulators, customers, and the broader community, will be vital to addressing concerns and building trust in the new AI-driven model.

The future of work in the banking industry is evolving rapidly, and AI is at the forefront of this transformation. While the shift to AI-driven operations presents opportunities for increased efficiency and innovation, it also poses challenges that must be carefully managed.

More About DBS Bank

DBS Bank, headquartered in Singapore, is the largest bank in Southeast Asia and a significant player in the global financial market. Established in 1968, DBS Bank has grown to become a leading consumer bank, financing Singapore’s growth and serving generations of Singaporeans for over 50 years. The bank operates in 19 markets, including Singapore, Hong Kong, China, India, Indonesia, and Taiwan, among others.