Thousands of jobs are being cut across Australia's banking sector as artificial intelligence use soars in clerical and customer service roles, though banks rarely officially link the two. ANZ announced on Tuesday it would axe 3,500 of its 40,000-plus employees by September 2026, while its bankers began using an AI analysis assistant called amie two months ago. ANZ chief executive Nuno Matos said the decision 'has absolutely nothing to do with AI or any technology'.
Commonwealth Bank recently reversed a plan to replace 45 customer service workers with an AI chatbot, but has made other redundancies. Dhanushi Jayatileka, a former CBA back-office worker made redundant, said her team had been shedding staff since 2024, with remaining workers using AI to replace former colleagues' work. 'We are teaching the machine to eventually take our job,' she said. A CBA spokesperson denied her redundancy was related to AI.
Experts warn the link between job losses and AI is underreported. Manju Ahuja, a professor at the University of New South Wales, said 'many AI-related job losses are just not officially recorded'. A University of Queensland study found sales, customer service and entry-level white-collar jobs are vulnerable to automation. Co-author Evan Shellshear said demand for consulting and accounting graduates is already slipping as senior staff use AI for menial tasks.
Telstra cut 2,800 jobs over the year to June and expects to cut a further 550 roles in 2025, saving $301m on labour expenses. Most remaining staff use Microsoft's AI assistant Copilot, and executives have told investors faster AI adoption will help shrink its 30,000-person workforce. The Bank of Queensland cut 200 roles in August, including in its call centre, while partnering with Capgemini to accelerate AI use. Spokespeople for both companies said job cuts are not related to AI investments.
CBA said its total workforce has increased since 2021, with more staff added in non-automated areas. It reported business bank queries are answered three times faster, engineers' code change output has risen by a third, and call centre wait times have fallen, all attributed to AI. Westpac is also promoting AI adoption while cutting jobs.
