HBS highlights DBS's pioneering AI strategy in banking

Harvard Business School (HBS) has undertaken a detailed examination of DBS's strategy towards Artificial Intelligence (AI) by publishing an extensive case study. This study is notable for being the first HBS case study on AI concerning an Asian bank and a Singaporean company.

The case study was developed by Professor Feng Zhu, MBA Class of 1958 Professor of Business Administration at HBS and Co-Chair of the Harvard Business Analytics Program, over an eight-month period. It documents the strategic measures and initiatives DBS has employed to integrate AI into its business operations since 2014, aiming to enhance business value. Additionally, the study explores how DBS is currently approaching Generative AI.

In the study, Professor Zhu outlines how AI technologies have the potential to transform traditional sectors such as financial services. "The case study on DBS illustrates how AI technologies can potentially transform traditional industries, such as financial services, while driving value creation. By integrating AI into core processes, companies can unlock new potential for customer-centricity and operational excellence," remarked Professor Zhu.

DBS CEO Piyush Gupta provided further insights into the bank's journey with AI. "AI is shaping up to be an absolute game changer in the way we live and work. DBS has been working with AI for over a decade now, and in recent years, we've managed to industrialise the use of AI across the bank."

"We today deploy over 800 AI models across 350 use cases, and expect the measured economic impact of these to exceed SGD $1 billion in 2025, after sequential doubling in the last few years. More importantly, the infrastructure and governance framework we established during our AI journey have put us in good stead to unlock the potential of Generative AI while managing its emergent risks," Gupta said.

DBS has applied AI across various facets of the bank to enhance customer experience and improve employee productivity. The bank uses AI to generate hyperpersonalised insights to help customers make informed investment and financial planning decisions. AI also equips relationship managers with deeper insights to engage customers more effectively, and helps in designing tailored career and upskilling roadmaps for employees, thereby aiding in their career growth within the bank.

The case will be included in the HBS Master of Business Administration (MBA) Program, the Senior Executive Leadership Program – China, and in executive education courses pertaining to AI and digital transformation.

In recognition of its AI initiatives, DBS was ranked #1 for AI Strategy Leadership in the 2023 Global Evident AI Index, which benchmarks the AI readiness of the 50 largest financial institutions in North America, Europe, and the Asia-Pacific region. Overall, DBS achieved the 10th position and was the only Asian bank to secure a spot in the Index's Top 10. In 2024, the global research firm Celent awarded DBS with a Global Model Bank Award for AI Industrialisation.