HDFC Bank Managing Director and CEO Sashidhar Jagdishan has stated that the bank’s adoption of artificial intelligence (AI) will not result in job cuts.
Instead, AI will be used to shift employees from backend operations to more customer-facing and technology-driven roles.
Speaking during the bank’s Q2 FY26 earnings conference on October 18, Sashidhar emphasized that AI presents a significant opportunity to reallocate talent rather than reduce headcount.
“Frankly, AI is not going to have any layoff whatsoever in our bank,” Sashidhar said.
He added, “I feel this is a massive opportunity to move people from the back end to the front end or to the tech end.”
His remarks come amid growing concerns across industries about the potential impact of AI on employment.
Lighthouse Experiments and Strategic Tech Investments Underway
HDFC Bank is currently conducting several “lighthouse experiments” involving generative AI and other emerging technologies.
These initiatives are aimed at re-engineering internal processes and improving customer experience.
The bank expects to see tangible outcomes from these efforts within the next 18 to 24 months.
Sashidhar noted that the bank’s current use of AI is focused on process optimization rather than decision-making.
“This will be used to reduce turnaround time, simplify workflows, and enhance service delivery,” he said.
The goal is to make operations more efficient while empowering employees to take on roles that require direct customer interaction or technical expertise.
HDFC Bank Employee Base Continues to Grow Despite Automation Trends
As of September 2025, HDFC Bank employed approximately 2.2 lakh people.
In the past six months alone, the bank added around 5,000 employees, signaling continued growth in its workforce.
Sashidhar clarified that any changes in staffing would be limited to normal attrition and not driven by AI implementation.
“It’s only going to change the mix of where our people are going to be positioned,” he said.
Sashidhar added, “But it is not going to reduce people apart from normal attrition that we have.”
This approach contrasts with trends in other sectors where AI adoption has led to significant layoffs.
Customer-Centric Strategy Drives Role Reallocation
The bank’s strategy reflects a broader shift toward customer-centric operations.
By moving employees to the frontlines, HDFC Bank aims to strengthen customer engagement and improve service quality.
At the same time, expanding technology roles will support innovation and ensure the bank remains competitive in a rapidly evolving digital landscape.
Sashidhar’s comments suggest that AI will serve as a tool for transformation rather than disruption.
The bank’s leadership views technology as a means to enhance human capabilities, not replace them.
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