AI to replace 4000 jobs in Southeast Asia's largest bank

Southeast Asia's largest bank DBS said that 4,000 jobs could be cut in the next three years and be replaced by artificial intelligence as the technology becomes more advanced.

"Over the next three years, we envisage that AI could reduce the need to renew about 4,000 temporary/contract staff across our 19 markets working on specific projects," a spokesperson from the Singapore bank told AFP on Tuesday, confirming earlier reports.

"As such, we expect the reduction in workforce will come from natural attrition as these temporary and contract roles are completed over the next few years."

A Bloomberg Intelligence report last month said banks worldwide will cut as many as 200,000 positions in the next three to five years due to AI.

Last year, the International Monetary Fund said AI could affect around 40 percent of jobs around the world.

"We will need to come up with a set of policies to safely leverage the vast potential of AI for the benefit of humanity," the IMF said.

DBS said permanent staff across different markets will not be affected.

"We have identified around 13,000 staff for upskilling or reskilling and to date, over 10,000 have commenced their respective learning roadmaps, including on skills such as AI and data," the lender said.