Commonwealth Bank is walking back on its plan to axe dozens of jobs in favour of new AI technology. (Source: Getty)
Commonwealth Bank (CBA) has revealed a stunning backflip on the controversial plan to axe dozens of jobs in favour of artificial intelligence (AI). The country’s biggest bank sparked fury after becoming one of the first big-name brands to cite AI as the reason behind a slew of redundancies.
The original plan was set to see up to 90 people lose their positions, with about half of those being replaced by a new AI chatbot designed to help customers. But CBA spokesperson told Yahoo Finance there’s been a slight shift in that plan.
“CBA’s initial assessment that the 45 roles in our Customer Service Direct business were not required did not adequately consider all relevant business considerations and this error meant the roles were not redundant,” they said.
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“We have apologised to the employees concerned and acknowledge we should have been more thorough in our assessment of the roles required.
“We are also reviewing our internal processes to improve our approach going forward.”
It comes as many Aussies have mixed feelings about the new tech.
A poll of more than 1,400 Yahoo Finance readers found 40 per cent “hate” using AI at work, while 21 per cent are fearful their job will soon be replaced by it.
Only 7 per cent felt their job wouldn’t be affected by AI.
Is your job being affected by AI and want to tell your story? Email stew.perrie@yahooinc.com
CBA revealed that the staff set to be affected by the AI shift have been given two options.
They can either keep their job or take a voluntary redundancy.
Financial Services Union national secretary Julia Angrisano said the backflip is a common-sense move, but warned it’s certainly not the time for a “victory lap” just yet.
“This is a massive win for workers, proving what can be achieved when members stand together,” she said.
“CBA has been caught out trying to dress up job cuts as innovation. Using AI as a cover for slashing secure jobs is a cynical cost-cutting exercise, and workers know it.”
While she welcomed the news, she admitted that the damage had been “already done”.
Unions are calling for workers to have a seat at the table when businesses, big and small, want to adopt AI.
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Aussie tech company Atlassian recently announced 150 people would lose their jobs and some of their tasks would be handled by AI.
Telstra has been the other big-name company admitting that AI will likely see its workforce get smaller in the coming years as the technology outperforms humans in certain roles.
It has also mandated every worker to start using AI to see if it can help with certain tasks.
Commonwealth Bank is walking back on its plan to replace dozens of workers with a new AI chatbot. (Source: Getty) · Lisa Maree Williams via Getty Images
Angrisano said FSU members wanted to be “trained and supported into better jobs that leverage AI”, not just shown the door because better tech has arrived.
“There is a human cost to this. You can’t just replace frontline jobs with a voice bot and expect the same service for customers,” she said.
Community and Public Sector Union (CPSU) assistant national secretary Melissa Payne said there has to be a future where workers and AI come together and it’s not a pick between one or the other.
She said people deserve to have “the right to a strong say in how new technology will affect their jobs and industries”.
“We can’t sit back and let multinationals and big businesses like Telstra make all the decisions on AI,” she said.
The Australian Council of Trade Unions (ACTU) is pushing for tougher regulations that ensure companies invest in skills development and retraining, have transparency over technology use, and create “genuine” privacy and data collection and use protections.
CBA has been investing heavily in the new technology to drive up efficiencies, plunging $2 billion into finding new ways to complete certain tasks.
“To meet the changing needs of our customers, like many organisations, we review the skills we need and how we’re organised to deliver the best customer experiences and outcomes. That means some roles and work can change,” a CBA spokesperson told Yahoo Finance.
“Our investment in technology, including AI, is making it easier and faster for customers to get help, especially in our call centres.
“By automating simple queries, our teams can focus on more complex customer queries that need empathy and experience.”
The bank has rolled out a ChatGPT-style messaging tool for business customers who have certain questions they need answered at any hour of the day.
It also launched a generative-AI chatbot for everyday customers last year, as well as an AI-powered scam detection tool to protect people from losing their money and personal information.
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