Synopsis
DBS Group projects a 10% workforce reduction over the next three years due to increased AI deployment, impacting temporary and contract staff. CEO Piyush Gupta highlights the unique nature of AI's capabilities, leading to challenges in job creation. The bank has seen significant growth in clientele and business income.Key Takeaways
- DBS Group plans a 10% workforce reduction.
- AI is being integrated into various operational functions.
- The bank has increased its workforce in AI roles.
- Natural attrition will contribute to staff reductions.
- Concerns exist regarding AI's reliability in customer outreach.
Mumbai, Feb 24 (NationPress) The Singapore-based DBS Group anticipates a 10% decrease in its workforce over the next three years, driven by the implementation of artificial intelligence (AI) in its operations, according to Chief Executive Piyush Gupta's announcement on Monday.
The bank is leveraging AI for various functions, including internal job mobility, as well as for managing fraud, scams, and risk assessment. Additionally, AI models are being utilized for portfolio management and customer onboarding, Gupta noted.
Gupta emphasized that AI differs significantly from previous technologies, expressing challenges in creating new jobs for the first time during his more than 15-year leadership at the Singaporean bank.
Speaking at an event organized by the apex IT industry body Nasscom, Gupta mentioned that in 2016-2017, the bank recognized 1,600 roles as redundant due to rising automation. However, management collaborated with staff to establish a transition plan, successfully placing around 1,200 employees in alternative positions, while others either retired or chose to leave. “I’ve never had to terminate anyone,” he remarked.
Nonetheless, he stated that the upcoming workforce reduction is due to the unique nature of AI, noting that it is a self-generating and self-manipulating technology.
The bank has also hired 1,000 new employees in AI-related positions, highlighting growth in business and clientele, with client numbers soaring to 20 million from 6 million in previous years. DBS Bank currently employs over 6,500 staff in India.
In a follow-up clarification, the bank indicated: “The reduction of 4,000 employees over the next three years will primarily affect contract and temporary staff. The workforce reduction will also stem from natural attrition as temporary and contract roles conclude in the coming years.”
The bank is cautious about fully depending on AI for customer outreach, citing concerns such as hallucinations, but it has completed its first use case for direct customer engagement and intends to broaden this initiative by the end of the year.
Completing three decades of operations in India, the DBS Group reported an income of 22.3 billion Singapore dollars in 2024, alongside a net profit of 11.4 billion Singapore dollars.
