Helen Wong, chief executive officer of OCBC, is setting the record straight on the use of artificial intelligence in banking. Far from eliminating roles, AI is a job multiplier, she believes.

“I love the topic [of] AI,” Wong told analysts, explaining how OCBC’s in-house AI system has already boosted coder productivity by 20%.

The bank is doubling down on tech investments, expanding engineering hubs in Shanghai, Shenzhen, and Indonesia.

Wong illustrated AI’s job-creating potential with a simple example: enhancing ATM features means hiring more employees to assist engineers.

AI isn’t just for tech teams, she noted. It also helps streamline processes across the organisation. “AI creates more jobs,” she stated, reinforcing OCBC’s commitment to upskilling staff to keep pace with technological change.

Also Read: OCBC allocates $30M to staff growth

OCBC’s optimism contrasts with DBS CEO Piyush Gupta’s recent remarks on the impact of AI on banking jobs. “In my 15 years of being a CEO, for the first time, I’m struggling to create jobs,” he said.

Global banks, in fact, are predicted to shed a staggering 200,000 jobs in the next three to five years because of AI, findings from Bloomberg Intelligence revealed.

Despite the fact that some roles are likely to be displaced, banks are still ramping up the hiring of AI talent.

DBS – which recently made headlines over the possibility of no longer renewing 4,000 contract and temporary workers – said it will be hiring talent equipped with AI skills.

And while JPMorgan Chase reportedly shed 1,000 jobs in February – with plans to keep headcount flat – the US lender still has 14,000 openings.

The banking industry and the AI revolution

AI adoption isn’t new in finance, but with generative AI and agentic AI making waves, banks are investing heavily in cutting-edge technology to sharpen their competitive edge.

A recent IBM Institute for Business Value report highlighted how banking and financial markets CEOs are grappling with workforce and cultural shifts as they scale AI adoption.

According to the study, which surveyed over 3,000 CEOs across more than 30 countries – including 297 BFM leaders – 57% believe AI capabilities will determine market leadership. Yet, technology alone isn’t enough:

• 65% believe success with AI will depend more on employee adoption than the technology itself.
• 60% are pushing AI adoption at a pace faster than some employees can comfortably adjust to.
• 59% say cultural transformation is more crucial than technical implementation when becoming AI-driven.
• 43% admit staff don’t fully grasp how strategic AI decisions impact them.

Skills shortages remain a pressing concern. While 60% of BFM CEOs say their workforce is AI-ready, 53% are already struggling to fill critical tech roles.

Meanwhile, 50% are hiring for jobs that didn’t exist a year ago, proving the rapid evolution of banking careers in the AI era.

Also Read: Bank Danamon on amplifying AI's impact

The productivity vs risk dilemma

The drive for AI-powered efficiency is so strong that 66% of BFM CEOs would accept significant risks to stay ahead, and 67% are willing to take bigger gambles than their competitors. Yet, they recognise that trust cannot be sacrificed on the altar of innovation.

• 83% emphasise transparency in AI adoption to maintain credibility with customers and employees.
• 64% say customer trust matters more than any single product or service.

AI is unlocking efficiencies, but it’s also escalating cybersecurity threats. As cybercriminals grow more sophisticated, traditional security measures are struggling to keep pace.

Banks are thus turning to AI-powered machine learning to detect fraudulent transactions in real time, analysing patterns across vast datasets.

John Duigenan, general manager of Global Financial Services at IBM, cautions banking leaders who are eager to capitalise on just any AI that may be cost-effective or easy to deploy.

“CEOs in the banking and financial markets sector are keenly aware of the competitive benefits that generative AI will bring and are eager to move quickly,” he said.

“In their enthusiasm to embrace the benefits of this potent new technology, it's critical that financial services leaders ensure their institutions are taking steps to engineer trustworthy AI designed to reduce risk and win the confidence of their customers, employees and regulators.”

Banking giants weigh in on AI adoption

At Goldman Sachs, CEO David Solomon sees AI as a long-term growth engine. The bank is already experiencing an “enormous appetite” from clients looking for AI strategy advice, fuelling an ecosystem of investment banking and market activity.

JPMorgan Chase CEO Jamie Dimon envisions AI augmenting nearly every job.

It may reduce certain job categories or roles, but it may create others as well,” Dimon said.

JPMorgan said it is committed to retraining and redeploying talent to adapt to these shifts.

Over at Bank of America, AI is said to have transformed customer service through its virtual assistant, Erica. CEO Brian Moynihan noted that AI is also revolutionising internal operations, from coding to algorithmic modelling. “AI can be applied effectively,” he said, “but it has to be done carefully.”

For Morgan Stanley, AI is proving to be a game-changer in wealth management. CEO Ted Pick highlighted how AI-driven transcription and categorisation tools save financial advisers 10 to 15 hours per week, an “enormous productivity quantum” that is only scratching the surface of AI’s potential.

Gauging the extent of AI's impact on banking

AI is fundamentally recalibrating roles and functions in banking but, for top executives who hold the long view, the reality of AI’s impact is more nuanced than a simple job killer versus job creator debate.

AI is transforming work, demanding new skills, and forcing banks to rethink workforce strategies.

For leaders like Wong, AI is an opportunity to enhance – not replace – human potential. But for others, the equation is more complex. Whether AI results in job creation or job displacement will depend on how banks manage adoption, reskill employees, and navigate the risks that come with this tech revolution.