AI job cuts debacle sees biggest Australia bank reverse tack

[SYDNEY] Commonwealth Bank of Australia (CBA) reversed a decision to cut 45 customer service roles due to new artificial intelligence (AI) technology after pressure from the country’s main financial services union.

The union took CBA to the workplace relations tribunal earlier this month as the company was not being transparent about call volumes, according to a statement on Thursday (Aug 21) from the Finance Sector Union. The nation’s largest lender had said that the voice bot reduced call volumes by 2,000 a week, when union members said volumes were in fact rising and CBA had to offer staff overtime and direct team leaders to answer calls, the union said.

CBA’s initial assessment that the roles were not required “did not adequately consider all relevant business considerations and this error meant the roles were not redundant”, a CBA spokesperson said.

“We have apologised to the employees concerned and acknowledge we should have been more thorough in our assessment of the roles required,” the spokesperson said. Impacted staff are being offered the choice of continuing in their current roles, seeking another position or leaving the firm, the spokesperson added.

Chief executive officer Matt Comyn has been at the forefront of pushing technology in Australia’s banking sector and the firm this month unveiled a partnership with OpenAI to bring advanced AI to its customers and staff. Elsewhere, lenders around the world are grappling with the use of AI and its impact on jobs.

Global banks will cut as many as 200,000 jobs in the next three to five years as AI encroaches on tasks currently carried out by human workers, a Bloomberg Intelligence report said at the start of the year. Back office, middle office and operations are likely to be most at risk, according to the report.

The union called the decision to rescind the job cuts a “massive win” for members. In taking the bank to the tribunal, the union said CBA did not explain how roles were selected for redundancy, and also that it was hiring similar roles with messaging duties in India.

The Sydney-based bank said that it was also reviewing internal processes to improve its approach in the future. The firm employs more than 51,000 staff.

Separately, rival National Australia Bank earlier this week said that it’s engaging with the finance sector union after errors were made in paying staff. BLOOMBERG