Singapore's largest bank, DBS, recently announced a major plan to cut approximately 4,000 positions in the next three years. The main reason for this decision is the rapid development of artificial intelligence (AI) technology, which is gradually replacing many traditional jobs. A bank spokesman said the layoffs will be carried out mainly through natural loss, that is, as the work contracts of temporary workers and contract workers expire, the number of employees will be gradually reduced. It is worth noting that DBS does not plan to cut permanent employees, which shows that while responding to technological changes, the bank is also working hard to protect the interests of its core employees.
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DBS currently has approximately 41,000 employees, including 8,000 to 9,000 temporary and contract workers. Despite the news of layoffs, outgoing CEO Piyush Gupta said the bank is expected to create about 1,000 new AI-related jobs to cope with changes brought about by technological advances. This move shows that DBS Bank is not only reducing traditional positions, but also actively planning to make plans for the future and improving business efficiency and innovation capabilities through artificial intelligence technology.
Over the past decade, DBS Bank has been committed to the research and development and application of artificial intelligence technology, and has deployed more than 800 AI models in 350 different business scenarios. Gupta said these AI technologies are expected to bring more than S$1 billion (about US$745 million) of economic benefits to banks by 2025. This figure not only demonstrates the huge potential of artificial intelligence in the financial field, but also reflects DBS Bank's leading position in digital transformation.
With the rapid development of artificial intelligence technology, all walks of life are facing the risk of job replacement. In its 2024 forecast, the International Monetary Fund (IMF) pointed out that nearly 40% of global work may be affected by artificial intelligence. In addition, IMF President Kristalina Georgieva said that in most cases, artificial intelligence may exacerbate social inequality. This forecast reminds us that despite the enormous economic benefits of technological advances, it also needs to pay attention to its far-reaching impact on the job market and social structure.
However, Bank of England President Andrew Bailey said in an interview with the BBC that artificial intelligence will not become a "massive job disruptor." He believes that human workers will gradually adapt to collaboration with new technologies and leverage their potential to create new opportunities. This view provides an optimistic perspective that although artificial intelligence will change the way it works, it will also bring new career development space for human beings.
DBS's layoffs and the widespread use of artificial intelligence mark a profound change in the financial industry. How the future of the banking industry will evolve still needs time to test. However, it is certain that artificial intelligence will continue to play an important role in the financial field and promote the industry to develop in a more efficient and smarter direction.
Key points:
DBS Bank plans to cut 4,000 positions in the next three years, mainly through natural loss.
Banks are expected to create about 1,000 new AI-related jobs to cope with technological advancements.
The popularity of artificial intelligence is expected to affect nearly 40% of global work and may exacerbate social inequality.