Union pushback forces CBA to scrap AI job cuts

The Finance Sector Union, the country’s top financial services union, pushed back against the Commonwealth Bank of Australia, forcing it to abandon plans to cut 45 customer service jobs.

After introducing its voice bot, the CBA first confirmed job cuts in July, commenting, “Our investment in technology, including AI, is making it easier and faster for customers to get help, especially in our call centers.” However, the bank has now conceded that axing 45 customer service roles on the grounds of AI automation was an “error” and confirmed it had apologized to affected workers. It insists the jobs are still needed alongside its AI-powered “voice-bot.”

The CBA says it didn’t take everything into account in its decision to cut jobs

In a statement released Thursday, the Finance Sector Union said it had earlier lodged a complaint against CBA with the workplace relations tribunal for not being open about call volumes.  According to the union, call volumes were climbing rather than falling, with CBA staff asked to work overtime and team leaders told to step in, contradicting the bank’s assertion that the voice bot would reduce weekly calls by 2,000. 

Holding onto the notion that the voice bot would make work easier, the bank was prepared to shed 45 customer service jobs. However, the recent reversal acknowledged that it had not properly considered all business implications. It added that its assessment of which roles were required should have been more rigorous.

Moreover, it stated that affected employees can either stay on, transition to other positions within the bank, or choose to leave. It also pledged to examine its internal processes to refine its approach.

So far, the union has hailed the bank’s reversal as a major victory. However, it stressed that damage had already been done. FSU National Secretary Julia Angrisano said that CBA attempts to present job cuts as innovation. She described using AI as a cover for eliminating secure jobs as a cynical cost-cutting move that workers are fully aware of.

Nevertheless, the union claimed it would gather more accounts of how offshoring, automation, and AI have influenced workloads and job security, with the matter set to go before Fair Work next week. 

Matt Comyn said they employed 2,000 more staff in the last few months

CBA’s lead Matt Comyn has been advocating for more tech infusion in the country’s banking industry. Earlier this month, the bank even partnered with OpenAI to introduce advanced AI tools for customers and employees. OpenAI CEO Sam Altman has urged Australia to accelerate its AI adoption and position itself as a global AI leader. He also expressed excitement about the partnership, highlighting the opportunity to put AI in the hands of more Australians.

Altman noted that OpenAI highly rated Commbank as one of Australia’s largest institutions serving millions of people and businesses daily. He noted that they were thrilled to work together to put advanced AI into the hands of more Australians. He noted that the union would make AI more useful and impactful for people and businesses across the nation. Even so, Comyn admitted the long-term implications of AI for employment are uncertain, adding that it would take years to uncover the full potential of the technology.

Other global banks are confronting similar challenges, with AI chipping away employment prospects. For instance, Singapore’s DBS Holdings is set to cut close to 4,000 contract and temporary staff over the next three years as AI increasingly takes over human functions. As earlier reported by Cryptopolitan, global banks will slash as many as 200,000 jobs in the next three to five years due to artificial intelligence.

So far, CEO Comyn said they’ve added another 2,000 workers in recent months, noting that a large share of those roles were based in India as part of its technology build-out.

Get seen where it counts. Advertise in Cryptopolitan Research and reach crypto’s sharpest investors and builders.