From customer service to back-office operations, banks are increasingly leaning on AI-driven systems and AI chatbots to improve efficiency.
Reports from across the financial sector confirm that artificial intelligence is rapidly reshaping the workforce. From customer service to back-office operations, banks are increasingly leaning on AI-driven systems and AI chatbots to improve efficiency.
While shareholders may benefit from reduced labor costs, the shift is creating uncertainty for thousands of professionals who now face job displacement.
It’s a crazy time for workers in the industry: while technology unlocks new opportunities, the immediate impact for many has been layoffs, stalled careers, and financial stress.
Commonwealth Bank Of Australia Almost Replaced 45 Workers With An AI Chatbot
Back in the summer, Commonwealth Bank launched an AI chatbot that eliminated 45 workers from its branches. While this could have saved labor costs, these layoffs could have already caused damage to the affected professionals because they were forced to quickly search for new work opportunities.
As of early September, the bank reversed this choice and gave the 45 workers a chance to return to the branch. The Finance Sector Union provided resources to the laid-off individuals as most wished to move on from the Commonwealth Bank.
DBS Bank of Singapore Reducing Temporary Staff with AI Chatbots
DBS Bank, one of the highest-profile banks in Asia, made a surprising announcement in February 2025. The entity is projecting to cut 4,000 contract and temporary jobs over the coming three-year period. These projected layoffs will not affect permanent staff members. Their AI systems are beginning to handle human-led tasks more quickly and efficiently. Hence, contract workers won’t receive renewed contracts as their current workload period ends with the company.
Citigroup Reports High Risk Of Job Displacement In the Finance Sector
Citigroup announced in June 2024 that about 54% of global banking roles are at risk of being displaced because of AI advancements. While this is a breathtaking statistic, this doesn’t mean every bank worldwide is immediately instigating layoffs.
However, finance professionals should be wary of their company’s technological advances to prepare for possible job changes.
Which Jobs Are Most Vulnerable?
Customer service jobs, back-office processing positions, and reporting roles are at the highest risk for displacement via AI. If you are in any of the positions noted below, invest time in building your skills and knowledge to climb to higher-tier roles. Most of these jobs are entry-level or mid-level, so working towards a higher-tier role can increase job security.
Here are the jobs and tasks that are most at risk for AI augmentation, which can cause job displacement:
- Call center staff that handles routine customer service tasks and inquiries.
- Document processors and compliance checkers.
- Anti-fraud monitors.
- Know-your-customer (KYC) representatives.
- Clerical and administrative roles are in charge of preparing documents and conducting data entry.
The Human Alternative: Balance, Not Displacement
Replacing workers with AI has broader economic and social consequences. Instead, banks could adopt a balanced approach that pairs technology with human expertise. This includes investing in reskilling programs that allow staff to transition into roles such as compliance, AI oversight, and data analysis.
Such measures would not only maintain institutional knowledge but also reduce the costs of retraining new hires in the future.
Bottom Line
The banking sector is at a crossroads. AI promises efficiency and cost savings, but the human toll of job displacement cannot be ignored. For workers, this is indeed a crazy time, a moment that demands adaptation, new skills, and resilience. For banks, it’s a test of whether technology will be used to strengthen both profit margins and people.
