“AI has been a part of our business for nearly three years, and we need to continue to move fast to meet the accelerating pace of change.”

In addition to AI, Vernon highlighted two further priorities: accelerating AMP’s wealth business and maintaining a sharp focus on capital allocation and organisational efficiency.

“Our focus will be on driving organic growth in our wealth businesses. We’ll do this through a relentless focus on customer acquisition and retention, and importantly, by growing and deepening our adviser partnerships,” he said.

“Finally, we’ll retain a sharp focus on capital allocation and organisational efficiency. We’re committed to the efficient use of capital and facilitating a return of capital to shareholders, in the absence of more compelling opportunities to add capability – as opposed to scale.”

Vernon’s remarks come as the bank’s share price has fallen 24 per cent since the release of its full-year results in mid-February.

On this, Vernon said: “This has been disappointing for all stakeholders, and, in the board’s view, does not reflect the strong growth in financial performance that has been achieved over the last few years.

“Share price movements reflect a wide range of factors, including sentiment, expectations of future performance and broader macro and geopolitical conditions.”

AI focus precipitates job losses

AMP’s prioritisation of AI follows an announcement from Bendigo and Adelaide Bank that it will cut its workforce after signing two major technology deals.

The cuts, which the bank said will deliver $65 million in annual savings, follow partnerships with Infosys and Genpact.

Bendigo and Adelaide Bank also signed an AI deal with Google last year, under which its Gemini software will be rolled out across the organisation.

The bank has not confirmed how many roles will be made redundant, stating it is still consulting with affected employees.

In an ASX statement, Bendigo and Adelaide Bank said: “The process and operational improvements expected to be delivered by these partnerships will lead to workforce changes, impacting people in our technology and business operations teams.”

CEO and managing director Richard Fennell said: “Decisions that impact our people are never easy. We acknowledge this will be a challenging time for our people, and we are committed to lead[ing] these changes with care and respect.”

Bendigo and Adelaide Bank is not alone in making workforce reductions.

Last month, National Australia Bank made more than 100 redundancies in its business banking workforce, while Australia and New Zealand Banking Group Limited (ANZ) last year announced plans to cut 3,500 roles.

Westpac and Commonwealth Bank of Australia have also reduced their workforces over the past year.

Finance Sector Union national secretary Julia Angrisano condemned Bendigo and Adelaide Bank’s decision, calling it a “race to the bottom”.

“The race to the bottom has well and truly started in Australia when it comes to AI adoption and offshoring, and Australians should be outraged by the failures of both business and government,” she said.

“We are now seeing in real time the disastrous consequences of a complete lack of AI regulation, and Australian workers are paying the ultimate price.

“The idea of Bendigo Bank being a community bank is now dead. It has completely abandoned any pretence of being Australia’s most trusted bank.”

This story was originally published by Cyber Daily’s sister brand, Broker Daily.