DBS AI Push to Phase Out 4,000 Junior Equity Research & Contract Roles Over 3 Years

The recent statement from DBS’s Clifford Lee that “junior research jobs ‘will be gone’” reflects a strong internal conviction that AI will materially eliminate traditional junior analyst roles in equity research within the near term, especially those involving basic research gathering and desk work [1]. In context, the claim aligns with the organization’s wider strategy: automating functions, optimizing teams, and freeing up headcount to cover larger universes of companies with fewer people doing foundational work.

However, this bold prediction differs in scope from DBS CEO Piyush Gupta’s public plan announced earlier in 2025 to cut 4,000 contract and temporary roles over three years, leaving permanent staff untouched [2][6]. That plan centres around replacing external or non-core roles and natural attrition—not directly laying off full-time junior employees. Thus, Lee’s statement augurs a more fundamental structural shift rather than a discrete cost-saving initiative.

In industry context, contrasting views are emerging. Some finance executives (e.g., at Goldman Sachs) argue AI tools will augment junior bankers’ output and shift their roles, not eliminate them outright [3]. Research such as the Harvard study and analysis by Stanford and MIT suggests that early-career workers in AI-exposed occupations have faced a disproportionate decline in employment and hiring, though this phenomenon is still unfolding [4].

Strategic implications for investment banks and financial institutions are substantial. To stay competitive, firms will likely accelerate investments in AI for equity research, compliance, credit, and customer-facing tasks. They will need to implement robust transformation programs: upskilling or reskilling existing staff, creating hybrid roles, redefining promotion paths, and possibly reimagining the analyst pyramid. Organizations that do not adapt may face challenges attracting early-career talent, regulatory scrutiny, and morale issues.

Open questions remain including: How many permanent junior roles will truly disappear vs evolve? Will industry regulation or professional norms intervene? What skills will define the next generation of junior research professionals—e.g., data science, AI oversight, qualitative judgment? And will the pipeline of jobs for fresh graduates shift more toward non-traditional roles, boutiques, or independent research?