AI Set to Replace Humans in 4,000 Roles at Southeast Asia's Largest Bank

Singapore: DBS, Southeast Asia's largest bank, has announced plans to reduce its workforce by approximately 4,000 roles over the next three years as part of a strategic shift towards artificial intelligence (AI) integration. The move underscores the growing influence of AI in financial services, automating tasks previously handled by human employees.

Job Reductions Through Natural Attrition

The affected positions will primarily be temporary and contract roles, with job reductions occurring through natural attrition as projects conclude. DBS has confirmed that permanent employees will not be impacted by these changes.

According to outgoing CEO Piyush Gupta, the bank anticipates creating around 1,000 new AI-related job opportunities, positioning DBS as one of the first major banks to detail AI’s impact on its workforce. However, the bank has not disclosed specific figures on job cuts within Singapore.

A DBS spokesperson elaborated, 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. As such, we expect the reduction in workforce will come from natural attrition as these roles are completed.”

DBS's AI Investments and Economic Impact

Currently, DBS employs between 8,000 and 9,000 temporary and contract workers, in addition to its total workforce of approximately 41,000. Over the past decade, the bank has significantly invested in AI-driven technologies, deploying over 800 AI models across 350 use cases.

Gupta highlighted that DBS’s AI initiatives are expected to generate a measured economic impact exceeding S$1 billion ($745 million) in 2025. He emphasized the bank’s commitment to harnessing AI for operational efficiency and customer service enhancement.

Leadership Transition Amid AI Expansion

As Piyush Gupta prepares to step down at the end of March, Deputy CEO Tan Su Shan is set to assume leadership. The transition occurs at a time when AI-driven automation is reshaping employment dynamics across industries.

Global Concerns Over AI’s Impact on Jobs

The rise of AI in the banking sector has sparked broader discussions about job security and economic inequality. The International Monetary Fund (IMF) has cautioned that nearly 40% of all jobs worldwide could be affected by AI-driven automation. IMF Managing Director Kristalina Georgieva recently warned, “In most scenarios, AI will likely exacerbate overall inequality.”

As DBS accelerates its AI transformation, industry experts will closely monitor its implications on employment and financial services innovation across Southeast Asia.