SINGAPORE’S largest bank DBS has announced plans to cut 4,000 jobs over the next three years as artificial intelligence (AI) takes over more work done by humans.

DBS chief executive officer Piyush Gupta said that the bank will shrink its workforce by 10 per cent as he became the first major banking leader to lay out possible job losses due to AI.

The reduction in workforce will come from natural attrition as temporary and contract roles roll off over the next few years, a DBS spokesperson said.

Permanent staff are not expected to be affected by the cuts and the bank plans to create around 1,000 new AI-related jobs.

DBS did not specify how many jobs would be cut in Singapore or which roles would be affected.

The bank currently employs between 8,000 and 9,000 temporary and contract workers out of a total workforce of approximately 41,000.

Last year, Mr Gupta said DBS had been working on AI for over a decade.

Last year, the International Monetary Fund warned that AI could affect nearly 40 per cent of jobs worldwide, with managing director Kristalina Georgieva cautioning that “in most scenarios, AI will likely worsen overall inequality.”