Most Asia-Pacific firms use AI for tasks without cutting jobs: survey

While a wave of job cuts across Asia’s finance and other industries due to wider use of artificial intelligence has spurred concerns, a new study shows that the technology’s net impact on employment is not as clear-cut. Recruiters and industry observers say many companies are adding AI-related roles without having to lay off workers. A study by professional services firm Aon released on Wednesday shows that 74 per cent of 504 companies surveyed across industries in the Asia-Pacific region have deployed or piloted AI programmes. Firms surveyed include those in Singapore, Hong Kong, mainland China, Malaysia, the Philippines and India. A quarter of the companies expected AI adoption to lead to job displacement, but 84 per cent said they were using the technology to perform certain tasks without completely replacing jobs. In May, Meta announced 8,000 layoffs around the world as it stepped up restructuring and investments in AI, with some of its Singapore-based staff among those who were let go. Standard Chartered also said in the same month that it would cut more than 15 per cent of its corporate function roles by 2030 due to its increasing use of AI. While the lender did not mention any locations for the job cuts, some of its staff in the Asia-Pacific region are expected to be among those affected. StanChart’s CEO Bill Winters said: “We don’t have job losses, but we do have job role reductions in favour of the machines, and that will accelerate as we go forward into AI.” The two announcements have sparked concerns of further retrenchments in the finance and other sectors as AI deployment accelerates. Workers in the finance sector were likely to be “hit harder” by AI, said Cindy Deng, associate professor of finance at Nanyang Technological University. She noted that many companies in the sector had adopted the technology in areas including risk management, software development, wealth advisory support and marketing. Maira Jamall, senior consultant for banking and financial services at Robert Walters Singapore, said finance firms in the Asia-Pacific region had shifted from experimenting with AI to deploying it. “There is at least an AI automation tool being put in place, particularly in operations, risk management, compliance and even customer service,” she said. Financial services companies are increasingly cautious and slowing their headcount growth, with longer approval processes and lengthier interview procedures for new hires, according to Jamall. Deng said entry-level and middle-office roles, whose tasks were largely structured and repetitive, were most vulnerable to cost-cutting. She called on governments to help cushion the impact of AI by funding reskilling and supporting mid-career transitions. Workers would not be fully replaced in the sector, but companies are placing more emphasis on productivity and training to integrate AI across different roles. Jamall said: “Many tasks that were performed manually can now be partially automated, which will raise expectations around productivity and the value-added work from employees.” Anurag Garg, managing director at Michael Page Singapore, said workers were increasingly expected to show their adaptability and willingness to improve their skills, centred around AI, such as in data analysis. According to Sherry Zerh, senior director in Kerry Consulting’s technology recruitment practice, workers who could show their problem-solving skills by using AI would stand out. “Employers want people who can work alongside AI, apply it in real business contexts, and use it to improve outcomes. The winning edge is the ability to combine domain expertise with AI-enabled productivity,” Zerh said. While finance companies are looking to realign their operations around AI, regional authorities are taking steps to establish safety nets on its use. Among them, the Monetary Authority of Singapore has introduced principles for responsible use of the technology and established a framework to help financial institutions assess and manage AI models. Its Hong Kong counterpart has launched an initiative to let companies in the sector test and safely deploy AI tools. Garg said financial firms viewed rules on AI use as a necessity and had taken steps to tighten internal governance and risk control. According to Jamall, the sector has to look beyond cost calculations and remain focused on data privacy and transparency to ensure regulatory compliance as companies implement AI processes. “For financial institutions, this means AI adoption is increasingly being accompanied by stronger governance structures and risk controls, rather than being implemented purely as a cost-reduction initiative,” she said.

Most Asia-Pacific firms use AI for tasks without cutting jobs: survey

.css-1c6uqr6{color:inherit;font-weight:inherit;font-size:inherit;font-family:inherit;line-height:inherit;overflow-wrap:break-word;}About 74 per cent of companies surveyed across industries in the Asia-Pacific have deployed or piloted AI programmes

About 74 per cent of companies surveyed across industries in the Asia-Pacific have deployed or piloted AI programmes