Despite widespread concerns about AI replacing jobs, HDFC Bank has clarified that its adoption of artificial intelligence will not lead to layoffs. The country’s largest private sector lender, which employed 2.20 lakh people as of September, is conducting “lighthouse experiments” with technologies such as generative AI. These initiatives, according to HDFC Bank CEO and MD Sashidhar Jagdishan, are expected to deliver tangible benefits over the next 18–24 months.
“Frankly, AI is not going (to result in) any layoff whatsoever in our bank, at least. Because I see this as a massive opportunity to move people from the backend to the front end or to the technology end,” Jagdishan told reporters in the post-earnings call, replying to a specific question on the impact of AI on jobs.
He emphasized that the bank’s goal is not to replace employees but to redirect them toward more customer-focused and technology-driven roles. “There is immense potential for growth. We want to have many people at the front end to engage with customers, as well as in technology, to continue innovating with the rapidly evolving tech landscape,” he added.
Jagdishan noted that HDFC Bank’s current use of AI is focused on process re-engineering and optimisation, rather than automated decision-making. “This will be used to reduce turnaround time, simplify processes, and create a fair amount of customer experience, which will free up a fair amount of capacity,” he said.
The bank anticipates a gradual return on its AI initiatives. “Some experiments will work and some won’t, but we are optimistic that the low-hanging fruits should work. One should start seeing the fruits of this from 18–24 months,” Jagdishan said.
