Global banking giant DBS Group anticipates a 10% reduction in its workforce over the next three years due to deeper integration of artificial intelligence (AI) into its operations. Speaking at a Nasscom event, DBS Chief Executive Piyush Gupta highlighted how AI is unlike any other technology previously adopted, making workforce restructuring inevitable.
4,000 job cuts expected
Gupta projected that 4,000 employees could lose their jobs as AI takes over various functions. Unlike past digital transformations, where employees were repurposed, AI presents a unique challenge as it can self-learn and replicate human tasks. “This year, my current projection is that in the next three years, we are going to shrink our workforce by 4,000 or 10 per cent,” Gupta said, speaking at the Indian IT industry lobby grouping Nasscom event here.
Attributing his outlook to the advent of AI, Gupta added, “AI is very powerful. It can self-create and also mimick.” Pointing out that AI is “different”, Gupta said in the last ten years, there have not been any job cuts in the group.
DBS previously undertook a major digital transformation in 2016-17, affecting 1,600 jobs. However, in collaboration with unions, most employees were reskilled and absorbed into other roles. This time, with AI advancing rapidly, the challenge lies in effectively repurposing the workforce.
AI in Banking
DBS has been deploying generative AI solutions for the past two years, using them in areas like customer outreach, credit underwriting, and hiring. However, concerns about AI-generated errors, such as “hallucinations,” have made the bank cautious in fully automating customer interactions. DBS started implementing generative AI solutions two years back, and the entire benefits of generative AI are yet to be seen, Gupta said.
Gupta remains optimistic about AI’s potential, stating that its full impact is yet to be realised. By the end of the year, DBS plans to expand AI-based customer outreach, marking another step in the ongoing digital revolution reshaping the financial sector.
(With PTI inputs)