The Commonwealth Bank has reversed a decision to cut 45 customer service jobs due to the use of artificial intelligence and admitted it made an “error” by declaring the roles redundant.
The Finance Sector Union (FSU) said the move was a “major win” and the result of weeks of pressure from CBA workers since the bank announced in July that 45 roles would be axed and replaced by an AI-powered “voice bot”.
At the time, a CBA spokesperson said “some roles and work can change” due to the use of technology, and the organisation would “review the skills we need and how we’re organised to deliver the best customer experiences and outcomes”.
CBA confirmed to Information Age on Thursday the decision that the 45 customer service jobs were no longer needed was incorrect.
“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,” a spokesperson said.
“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.”
The impacted workers would now be given the choice to continue in their current role, be redeployed within the bank, or continue with their redundancy, the FSU said.
‘Massive win’
The number of calls to the bank’s customer service workers were increasing, and management were offering overtime and getting team leaders to answer some calls, according to the FSU.
“This [reversal] is a massive win for workers, proving what can be achieved when members stand together - but let’s be clear, this is no victory lap,” FSU national secretary Julia Angrisano 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.”
The Finance Sector Union argues CBA was 'caught out trying to dress up job cuts as innovation'. Image: Commonwealth Bank / Supplied
The union said the incident was the “tip of the iceberg” of financial institutions using technology to slash jobs.
“Our members want to be part of the conversation about how new technology is used in banking,” Angrisano said.
“They want secure jobs today and the training needed for the jobs of the future, not to be discarded under the guise of efficiency.
“CBA likes to talk about being a digital leader, but real leadership means investing in your people, not tossing them aside and blaming the technology.”
Fears of AI and job losses
CBA’s reversal comes after it was revealed earlier this year that the bank was hiring more than 100 India-based software engineers to replace hundreds of Australian workers who were fired just months prior.
CBA began testing a generative AI chatbot named Hey CommBank in late 2024, leading to fears it would replace many of its 2,400 contact centre staff.
Several other large companies’ use of AI has led to widespread concerns of job losses — some of which have already eventuated.
Telstra recently announced plans to cut more than 500 roles across its business, but said it was not a result of its increased use of AI.
Amazon boss Andy Jassy said earlier this year that the increased use of AI by the tech giant would likely lead to job losses.
Several companies that have shed jobs in favour of AI have later rehired many of the workers they laid off.
Swedish fintech Klarna rehired some of its human customer service staff after replacing them with AI chatbots, while tech giant IBM rehired staff after replacing much of its human resources division with AI.
