The Commonwealth Bank of Australia is caught in some uncommon trouble. The CBA is rehiring 45 workers after it previously made the decision to replace them with AI. The CBA had initially fired workers under the pretense that AI chatbots or “voice bots” could better handle the work that was being done by the employees. The Finance Sector Union (FSU), certain that there was more to the said, escalated matters to a work tribunal, following which CBA scrapped its plans on the AI-motivated job cuts and announced that it would rehire the workers.
Not only does this mark a big win for the employees in their battle against AI, but it also showcases the value of union representation and what workers can achieve when they come together. With the union-driven movement at Air Canada also unfolding parallelly, there is much to be said for union activities in Australia right now.
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CBA Rehires 45 Workers After Being Caught Misrepresenting the Capabilities of AI Voice Bots
Last month, the Commonwealth Bank of Australia (CBA) announced its decision to cut 45 customer service workers after new AI voice bots were to be introduced into the system that were vastly more efficient, making the workers a redundant investment. The company proposed that the voice bots could reduce call volumes by 2,000 calls a week, which would make the business significantly more efficient.
Instead, the number of calls allegedly went up after the workers were dismissed. The CBA was forced to offer overtime to workers to keep up with the calls, and it even went so far as to rope in other management workers to answer calls to keep up with them.
The fired workers soon involved the Finance Sector Union (FSU), one of the country’s primary financial unions, which filed a work tribunal, accusing the bank of failing to explain how their roles had become redundant. The union also alleged that under the pretense of relying on AI, the bank was also hiring to fill similar roles in other regions, like India, making it a clear attempt to cut costs by outsourcing jobs.
The underhanded tactics caused significant outrage among employees who wanted answers and fair compensation for what was done to them.
CBA Backtracks on AI Cuts and Apologies to Employees
In light of the accusations, the CBA attributed this situation to an error in their strategic planning, stating that they “didn’t properly consider that an increase in calls” that occurred following the firing of staff would “continue over a number of months.” The CBA, caught up in this AI misjudgment, has now apologized to the workers, stating that they should have been more thorough in our assessment of the roles required.”
Additionally, CBA has also offered to rehire the 45 workers who were affected by the decision. The workers can either return to their previous positions or to another role at the organization. Those who do not want to return can leave with additional payment as well.
The FSU is certainly celebrating this victory, but Financial Sector Union national secretary Julia Angrisano called out the CBA for its actions, explaining that we are likely to see more such job threats emerge across the sector, dressed up as a strategy to lead a digital transformation. “CBA has been caught out trying to dress up job cuts as innovation,” she said in a statement. “Using AI as a cover for slashing secure jobs is a cynical cost-cutting exercise, and workers know it.”
The Financial Sector Appears Keen to Invest in AI
With the CBA backtracking on its AI cuts, matters may have ended on a positive note for workers, but for the sector overall, the AI threat persists. Even before reports regarding the CBA’s interest in replacing workers with AI, we’ve seen previous announcements from financial institutions that are ramping up investments in this technology to transform operations and cut down on labor costs.
From BNY Mellon to Goldman Sachs, we have witnessed the rise of digital “AI-generated” employees that are joining the workforce to perform some key tasks that are currently performed by human workers. While these projects are still being tested, there is evidence to suggest that 95% of businesses running AI pilots have not seen useful returns through their attempts at utilizing AI.
The technology is impressive, and it is certainly here to stay, but many businesses may be leaping to invest in its capabilities without sufficient planning and training. Many are finding that they may have overestimated what they can currently accomplish with AI. Jobs will be changed by AI tools across industries, but understanding how the evolution will occur and the changes that are needed to prepare for this eventual transformation could save businesses from finding themselves caught in the situation that CBA just survived.
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