DBS Bank to cut 10% workforce in 3 years as AI transforms operations

DBS Bank to cut 10% workforce in 3 years as AI takes over key operations, with CEO Piyush Gupta outlining the impact of automation on banking jobs

Global banking giant DBS Group expects to reduce its workforce by 10 per cent (around 4,000 employees) over the next three years, as artificial intelligence (AI) becomes deeply integrated into its operations. DBS chief executive Piyush Gupta made the announcement on Monday, highlighting AI’s transformative impact on the banking sector.

 

AI reshaping the workforce

 

Speaking at an event hosted by Indian IT industry lobby Nasscom, Gupta emphasised that AI is unlike any other technology adopted in the past. For the first time in his 15-year tenure, he is struggling to create new jobs amid automation advancements.

 

“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 stated.  The reduction will primarily involve contract and temporary staff. 

AI’s growing influence on banking jobs

 

Gupta further acknowledged AI’s potential, calling it “very powerful” with the ability to self-create and mimic human tasks. He noted that, unlike past technological shifts, AI is leading to job reductions rather than repurposing roles.

 

He recalled that during DBS’ digital transformation in 2016-17, an expected impact on 1,600 jobs was successfully mitigated by repurposing employees in consultation with unions. However, the challenge now is different, as AI’s influence extends deeper into various business functions.

 

Cautious AI adoption for customer engagement

 

Despite AI’s rapid adoption, DBS remains cautious about fully relying on AI for customer interactions, citing risks like hallucinations (AI-generated inaccuracies).

 

However, the bank has already implemented its first AI-driven customer outreach use case and plans to scale it up by the end of 2025.

 

DBS’ AI journey: From early failures to broad adoption

 

DBS first experimented with AI in 2012-13, but the initial efforts were not very successful. However, in the past two years, the bank has aggressively implemented generative AI solutions across multiple areas, including:

 

• Customer Outreach
• Credit Underwriting
• Hiring Processes

 

Gupta also noted that the full benefits of generative AI are yet to be realised, but its impact on streamlining operations and improving efficiency is undeniable. 

(With PTI inputs)