CEO of Southeast Asia's largest bank says AI adoption is already paying off: ‘It’s not hope, it’s now’

In a dynamic discussion at Singapore Fintech Week, the CEO of DBS Bank, Southeast Asia's largest financial institution, asserted that the bank is already witnessing the benefits of its substantial investment in artificial intelligence (AI). Tan Su Shan emphasized that for DBS, the promises of AI are not just hopeful predictions but a current reality, stating, "It's not hope. It's now. It's already happening. And it will get even better." DBS has been integrating AI into its operations for over a decade, positioning itself at the forefront of this technological wave. This strategic approach has allowed the bank to enhance its internal data analytics, preparing it for the latest advancements in generative and agentic AI. Agentic AI, which autonomously makes decisions and executes tasks with minimal human supervision, is a critical component of the bank's strategy. Tan projected that AI initiatives would generate more than 1 billion Singapore dollars (approximately $768 million) in revenue for DBS this year, up from an estimated SG$750 million in 2024. This optimistic forecast is based on the implementation of around 370 AI use cases powered by over 1,500 models throughout the organization. According to Tan, the rise of generative AI has led to transformative changes within the bank, creating a 'snowballing effect' of advantages through machine learning. One significant application of AI has been in providing enhanced financial services to institutional clients. By utilizing AI to gather and analyze client data, DBS has improved its ability to tailor and personalize its offerings, resulting in more efficient and resilient teams. This innovation has reportedly contributed to an increase in deposit growth for DBS compared to its competitors. The bank has also introduced a new AI-powered assistant, known as "DBS Joy," designed to address corporate banking inquiries at any time. Despite Tan's strong advocacy for AI, a recent MIT report highlighted challenges faced by many companies in realizing profits from their AI investments, revealing that 95% of 300 analyzed AI initiatives had not generated real returns. In contrast, leaders in the banking sector, including JPMorgan Chase's CEO Jamie Dimon, have expressed optimism about AI's potential for profitability, with Dimon noting that his bank is already breaking even on its AI investments. DBS shares this optimistic outlook and aims to further advance its AI capabilities to become a fully AI-powered banking entity. Tan envisions a future where generative AI serves as a reliable financial advisor, enabling retail customers to engage with personalized AI agents via the DBS banking app. With over 100 AI algorithms already analyzing user data for personalized insights, DBS is committed to ongoing investment in both technology and employee reskilling. This year, the bank has launched several initiatives to enhance its workforce's AI competencies, including a generative AI-powered coaching tool. Tan clarified that while the bank is not freezing hiring, it is focused on reskilling its staff to foster human connections with clients rather than downsizing, stating, "It's a journey. It's a never-ending journey ... a constant evolution."