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Singapore’s largest bank, DBS, plans to cut about 4,000 jobs over the next three years due to the introduction of artificial intelligence (AI), which is gradually replacing some functions previously performed by humans. This was reported by BBC News.
Who will be affected by the cuts?
The layoffs will affect temporary and contract employees working for the bank in 19 markets around the world. Permanent employees will not be affected, DBS said.
“We expect that the reduction will occur naturally when the projects are completed and there will be no need to extend the contracts further,” the bank representative said.
1,000 new jobs in the AI sector to replace those laid off
Despite the cuts, DBS plans to create 1,000 new jobs related to the development of artificial intelligence and automation.
According to current CEO Piyush Gupta, who will leave the bank in March, DBS has been actively working on AI for more than a decade.
“We are currently using more than 800 AI models in 350 different scenarios, and we expect their economic impact to exceed $745 million by 2025,” Gupta said.
Global impact of artificial intelligence on the labour market
According to the International Monetary Fund (IMF), almost 40% of jobs worldwide will be affected by AI.
IMF chief Kristalina Georgieva believes that this technology is “likely to increase inequality in society”. At the same time, according to the Governor of the Bank of England, Andrew Bailey, artificial intelligence will not become a “massive job destroyer” but rather change the way people work.
The growing role of AI in the banking sector confirms the new reality of the global economy: automation and digital technologies are increasingly changing traditional industries, forcing companies to reconsider their human resources strategies.
