MUMBAI: Axis Bank Ltd, India’s third-largest private sector lender, has recently articulated a forward-looking perspective on the impact of artificial intelligence (AI) on its workforce.
Contrary to widespread concerns regarding potential job losses due to automation, Sameer Shetty, the bank’s head of digital business and transformation, asserts that AI will not necessitate a reduction in staff.
Instead, he emphasises that the bank’s growth trajectory, particularly in digital staffing, will continue to create new roles and opportunities.
Over the past five years, Axis Bank has significantly expanded its technology team, increasing its workforce from approximately 60 to 800 employees across various domains such as engineering, product design, and marketing.
Favouring front-facing roles
The remarkable growth underscores the bank’s commitment to integrating advanced technologies into its operations. Shetty anticipates that the workforce will grow by an additional 10 per cent annually, with a dedicated team of around 70 employees focusing exclusively on AI initiatives.
The transformation of the workforce, as envisioned by Shetty, will involve a shift from traditional operations roles to positions that emphasise technology and customer engagement. He predicts that the bank’s employee composition will increasingly favour front-facing roles, where staff members will actively assist customers, address their needs, and foster meaningful interactions.
Reshaping job functions
The shift reflects a broader trend within the banking sector, where digitisation and automation are reshaping job functions.
While the adoption of AI and digital technologies offers significant advantages, it is not without challenges. Regulatory scrutiny has highlighted the importance of robust governance and risk management practices in the banking sector.
For instance, Kotak Mahindra Bank faced restrictions on its digital operations due to governance issues, illustrating the potential pitfalls of rapid technological advancement without adequate oversight.
Axis Bank’s commitment to hyperpersonalisation in its digital offerings exemplifies its innovative approach to customer engagement.
By leveraging AI to provide personalised nudges and recommendations, the bank has enhanced customer satisfaction and significantly increased its customer base. Furthermore, the implementation of generative AI tools, such as an internal chatbot named Adi, aims to streamline operations and improve employee efficiency.
