CBA's AI Job Cuts Backfire: What It Means for Australian Workers

Commonwealth Bank executives have defended their decisions to offshore jobs and integrate AI chatbots into operations.

Bank's Defense of AI and Offshoring

Chief executive Matt Comyn announced at the bank's annual general meeting that a $300 million investment in technology aims to bring the best of AI to customers and employees. However, this move has sparked controversy, with the Finance Sector Union criticizing the bank for cutting 45 customer service roles in favor of an AI-powered voice bot designed to reduce call volumes by 2000 calls per week.

Failed AI Implementation and Rehiring

Instead of decreasing, call volumes actually increased after the AI implementation, forcing management to offer overtime and deploy team leaders to handle phones. By August, the bank had to rehire the staff it had previously let go, highlighting the challenges of relying solely on AI for customer service.

Job Security and Offshore Expansion

When questioned about job security, chairman Paul O'Malley stated that CBA has increased its number of Australian employees, emphasizing the importance of delivering services with local staff. Despite this, Nicole McPherson, national assistant secretary of the Finance Sector Union, accused the bank of abandoning Australian workers in pursuit of profits, noting that CBA made $10 billion in profit while expanding offshore and cutting local jobs.

Commitment to AI and Engineering Talent

Matt Comyn countered by highlighting the bank's efforts to build world-class AI and engineering talent, including hiring 2000 engineers in the last financial year and upskilling employees with AI tools to enhance customer experiences.

Support for Cash Usage

In a related note, Mr. O'Malley defended the bank's support for cash, stating that it remains critical for customers and will likely be around for a long time, with CBA working to ensure its availability.