SYDNEY, Australia–As credit unions and other financial institutions expand their use of AI-based chatbots in call centers, one major bank that replaced workers with artificial intelligence is now walking back the move.
Commonwealth Bank of Australia laid off about 45 employees last month while introducing a voicebot it claimed was reducing call volumes by 2,000 per week, according to Bloomberg.
“Soon afterward, the bank admitted the technology had failed, apologized to the displaced staff, and invited them to return,” Inc. reported. “It also pledged to honor severance payments for those choosing not to come back. The union representing the workers accused the bank of misleading the public about the technology’s performance, saying call volumes were actually rising and supervisors were being pressed into answering phones.”
In a statement to Bloomberg, Commonwealth Bank acknowledged it had erred, saying its decision “did not adequately consider all relevant business considerations and this error meant the roles were not redundant.”
Bank Not Alone
Commonwealth Bank isn’t the only financial firm rethinking automation. Swedish fintech Klarna, once among the loudest proponents of AI, imposed a hiring freeze in 2022 and integrated OpenAI systems into its operations.
“But this year it reversed course, announcing plans to hire more staff while maintaining AI investments, stressing that customers will always have access to live representatives,” Inc. reported.
Inc. also cited a recent MIT study finding that 95% of corporate AI pilot programs have failed to deliver measurable financial benefits.
Longer-Term Warnings
Despite such setbacks, technologists warn the technology’s impact could be significant. Perplexity CEO Aravind Srinivas has predicted AI could displace recruiters and assistants within six months, while Anthropic CEO Dario Amodei said up to half of entry-level white-collar jobs could disappear within five years.
