This Bank Fired Workers and Replaced Them With AI. It Now Says That Was a Huge Mistake
Turns out, artificial intelligence may not always be as adept as some companies hope.
Last month, the Commonwealth Bank of Australia (CBA) made headlines when it cut 45 customer service jobs, replacing them with an AI voicebot. The bank claimed the AI reduced call volumes by 2,000 per week, but soon after, it reversed course and asked the laid-off workers to return, admitting the AI wasn’t capable of handling the workload.
CBA apologized to the employees affected and offered them the choice to come back or receive promised severance payments. However, the union representing these workers called the bank’s claims about AI’s effectiveness false, stating that call volumes were actually increasing. The union escalated the issue to Australia’s Fair Work Commission, which enforces workplace fairness laws.
In a statement, CBA acknowledged their decision to cut jobs was made without sufficient consideration, admitting the roles were not actually redundant.
CBA’s situation is not unique. Many companies have aggressively turned to AI to replace workers only to find that human employees remain essential. For example, two years ago, Klarna paused hiring and replaced many employees with AI, but recently reversed that stance, committing to hiring and ensuring customers can contact live representatives.
Similarly, Duolingo’s AI-first approach this year — cutting contractors and relying heavily on automation — sparked backlash, prompting the company’s CEO to reassure users that AI will not fully replace human workers.
An MIT report recently found that 95% of AI pilot programs in companies have failed to demonstrate measurable profits or improvements.
Despite these setbacks, AI is still predicted to profoundly reshape the workforce. Perplexity CEO Aravind Srinivas warned in July that AI could replace recruiters and assistants within six months. Meanwhile, Anthropic CEO Dario Amodei warned in May that up to 50% of entry-level white-collar jobs could disappear within five years, potentially pushing unemployment rates to 10-20%. Amodei urged lawmakers and AI developers to acknowledge the looming impact honestly, despite disbelief from many people.