DBS Group has announced plans to reduce its workforce by 4,000 employees over the next three years.
This decision, driven by the deeper integration of AI into the bank’s operations, marks a pivotal moment in the industry.
The announcement was made by DBS Group CEO Piyush Gupta. This took place at a recent event hosted by Nasscom, India’s IT industry lobby group.
The Impact of AI on Workforce
DBS Group, a leading global banking corporation, expects a 10% reduction in its workforce as AI adoption becomes more entrenched in its operations.
Piyush emphasized that AI is unlike any other technology previously adopted by the bank.
He highlighted its unique ability to self-create and replicate tasks traditionally performed by humans.
This transformative impact of AI has presented new challenges in job creation and workforce management.
It’s a first in Piyush’s over 15-year tenure at the helm of the Singaporean bank.
Reflecting on the bank’s digital transformation journey, Piyush recalled a similar scenario in 2016-17 when the bank’s digital initiatives threatened 1,600 jobs.
However, through consultations with unions and other representatives, almost all affected employees were successfully repurposed.
This historical context underscores the bank’s commitment to managing workforce transitions responsibly, even as it navigates the complexities of AI integration.
Current Workforce Reduction Strategy at DBS
The current workforce reduction strategy primarily targets contract and temporary staff, with natural attrition also contributing to the overall reduction.
Piyush clarified that the bank has been cautious about fully relying on AI for customer outreach due to potential issues like hallucinations.
Despite these challenges, DBS has made significant strides in integrating AI across various business functions.
These include customer outreach, credit underwriting, and hiring. DBS began implementing generative AI solutions two years ago.
While the full benefits are yet to be realized, the bank is optimistic about the potential of AI to enhance its operations.
Piyush noted that the bank’s first use case of AI in customer outreach has been successful. There are plans to expand its application by the end of the year.
The bank’s cautious approach to AI adoption reflects its commitment to balancing technological advancements with responsible workforce management.
Note: We are also on WhatsApp, LinkedIn, Google News, and YouTube, to get the latest news updates, Subscribe to our Channels. WhatsApp– Click Here, Google News– Click Here, YouTube – Click Here, and LinkedIn– Click Here.
