CBA Backtracks on AI Cuts

Commonwealth Bank of Australia (CBA) has reversed its decision to eliminate 45 customer service positions following the introduction of new AI chatbot technology. The initial plan to cut jobs was met with resistance from the Finance Sector Union (FSU). CBA has admitted the decision was an error, stating that the initial assessment did not adequately consider all relevant business factors.

CBA's AI voicebot had reportedly cut call volumes by 2,000 per week; however, call volumes increased, leading to managers working overtime. The bank has apologised to the affected employees and offered them the choice to remain in their current roles, seek redeployment within the company, or accept voluntary redundancy.

This reversal comes amid broader discussions about the impact of AI on the Australian workforce, with some companies, like Telstra, anticipating workforce reductions due to AI efficiencies. The incident has prompted debate around AI regulations and the need for retraining initiatives to help workers adapt to changing roles.