Bank reverses decision to replace 45 customer service staff with AI chatbot
(2025/08/22)
- Reference: 1755831372
- News link: https://www.theregister.co.uk/2025/08/22/commonwealth_ban_chatbot_fail_rehiring/
- Source link:
Australia’s Commonwealth Bank has decided not to fire 45 workers it planned to replace with an AI chatbot.
The Bank [1]told the Australian Broadcasting Corporation about the sackings in late July, and said the introduction of AI had reduced call volumes by allowing automation of simple queries. The bank intended for the chatbot to leave staff able to handle tougher queries, even once it cut employee numbers.
The Bank was wrong, and on Thursday it apologized to the staff it let go .
[2]
Australia’s Finance Sector Union [3]welcomed what it called a “backflip” and claimed call volumes rose at the Bank, leading to increased overtime for the remaining staff and management being drafted to help answer phones.
[4]
[5]
It’s unclear if the AI failed to perform as hoped, or if the bank botched something else.
[6]Commonwealth Bank: Buggy software made us miss money laundering
[7]Commonwealth Bank hyperconverges with VMware and Dell EMC
[8]'Limited' data leak at Aussie telco turns out to be 280K customer details
[9]KPMG wrote 100-page prompt to build agentic TaxBot
While the Union is celebrating, many more fights with the Commonwealth Bank probably lie ahead as it recently [10]announced a partnership with OpenAI “to bring advanced AI to customers and employees” and “deliver more personalised services for CommBank customers.”
The Bank has also adopted AI tools to help its software developers, yesterday [11]detailing how it adopted GitHub Copilot, “with mixed results in utilisation and efficacy.”
Distinguished engineer Brent McKendrick said the version of Copilot used at the bank “was simply an AI powered auto-complete engine”. It has since created “Run-time agents” that McKendrick said “can provide solutions to problems that we could not readily solve before, such as dynamic customer service bots, real-time transcription and summarisation, intelligent document analysis, etc.”
[12]
So clearly the Bank plans to revisit use of AI on its customer service frontlines.
Commonwealth Bank employs over 55,000 people, and officials have pointed out that while the chatbot saw it shed 45 staff, it hired thousands last year. ®
Get our [13]Tech Resources
[1] https://www.abc.net.au/news/2025-07-29/commonwealth-bank-says-ai-behind-dozens-of-job-cuts/105586312
[2] https://pubads.g.doubleclick.net/gampad/jump?co=1&iu=/6978/reg_software/aiml&sz=300x50%7C300x100%7C300x250%7C300x251%7C300x252%7C300x600%7C300x601&tile=2&c=2aKfrWiyOs7CxP-czG1GX8gAAAMA&t=ct%3Dns%26unitnum%3D2%26raptor%3Dcondor%26pos%3Dtop%26test%3D0
[3] https://www.fsunion.org.au/Hub/Content/News_and_publications/Member_updates/2025/WIN-CBA-backflips-on-customer-service-job-cuts.aspx
[4] https://pubads.g.doubleclick.net/gampad/jump?co=1&iu=/6978/reg_software/aiml&sz=300x50%7C300x100%7C300x250%7C300x251%7C300x252%7C300x600%7C300x601&tile=4&c=44aKfrWiyOs7CxP-czG1GX8gAAAMA&t=ct%3Dns%26unitnum%3D4%26raptor%3Dfalcon%26pos%3Dmid%26test%3D0
[5] https://pubads.g.doubleclick.net/gampad/jump?co=1&iu=/6978/reg_software/aiml&sz=300x50%7C300x100%7C300x250%7C300x251%7C300x252%7C300x600%7C300x601&tile=3&c=33aKfrWiyOs7CxP-czG1GX8gAAAMA&t=ct%3Dns%26unitnum%3D3%26raptor%3Deagle%26pos%3Dmid%26test%3D0
[6] https://www.theregister.com/2017/08/07/cba_blames_software_for_money_laundering_miss/
[7] https://www.theregister.com/2017/04/25/vmware_hyperconverged_commonwealth_bank/
[8] https://www.theregister.com/2025/08/20/tpg_telecom_iinet_breach/
[9] https://www.theregister.com/2025/08/20/kpmg_giant_prompt_tax_agent/
[10] https://www.commbank.com.au/articles/newsroom/2025/08/tech-ai-partnership.html
[11] https://medium.com/commbank-technology/the-evolution-of-ai-software-engineering-75a8a5a02c14
[12] https://pubads.g.doubleclick.net/gampad/jump?co=1&iu=/6978/reg_software/aiml&sz=300x50%7C300x100%7C300x250%7C300x251%7C300x252%7C300x600%7C300x601&tile=4&c=44aKfrWiyOs7CxP-czG1GX8gAAAMA&t=ct%3Dns%26unitnum%3D4%26raptor%3Dfalcon%26pos%3Dmid%26test%3D0
[13] https://whitepapers.theregister.com/
The Bank [1]told the Australian Broadcasting Corporation about the sackings in late July, and said the introduction of AI had reduced call volumes by allowing automation of simple queries. The bank intended for the chatbot to leave staff able to handle tougher queries, even once it cut employee numbers.
The Bank was wrong, and on Thursday it apologized to the staff it let go .
[2]
Australia’s Finance Sector Union [3]welcomed what it called a “backflip” and claimed call volumes rose at the Bank, leading to increased overtime for the remaining staff and management being drafted to help answer phones.
[4]
[5]
It’s unclear if the AI failed to perform as hoped, or if the bank botched something else.
[6]Commonwealth Bank: Buggy software made us miss money laundering
[7]Commonwealth Bank hyperconverges with VMware and Dell EMC
[8]'Limited' data leak at Aussie telco turns out to be 280K customer details
[9]KPMG wrote 100-page prompt to build agentic TaxBot
While the Union is celebrating, many more fights with the Commonwealth Bank probably lie ahead as it recently [10]announced a partnership with OpenAI “to bring advanced AI to customers and employees” and “deliver more personalised services for CommBank customers.”
The Bank has also adopted AI tools to help its software developers, yesterday [11]detailing how it adopted GitHub Copilot, “with mixed results in utilisation and efficacy.”
Distinguished engineer Brent McKendrick said the version of Copilot used at the bank “was simply an AI powered auto-complete engine”. It has since created “Run-time agents” that McKendrick said “can provide solutions to problems that we could not readily solve before, such as dynamic customer service bots, real-time transcription and summarisation, intelligent document analysis, etc.”
[12]
So clearly the Bank plans to revisit use of AI on its customer service frontlines.
Commonwealth Bank employs over 55,000 people, and officials have pointed out that while the chatbot saw it shed 45 staff, it hired thousands last year. ®
Get our [13]Tech Resources
[1] https://www.abc.net.au/news/2025-07-29/commonwealth-bank-says-ai-behind-dozens-of-job-cuts/105586312
[2] https://pubads.g.doubleclick.net/gampad/jump?co=1&iu=/6978/reg_software/aiml&sz=300x50%7C300x100%7C300x250%7C300x251%7C300x252%7C300x600%7C300x601&tile=2&c=2aKfrWiyOs7CxP-czG1GX8gAAAMA&t=ct%3Dns%26unitnum%3D2%26raptor%3Dcondor%26pos%3Dtop%26test%3D0
[3] https://www.fsunion.org.au/Hub/Content/News_and_publications/Member_updates/2025/WIN-CBA-backflips-on-customer-service-job-cuts.aspx
[4] https://pubads.g.doubleclick.net/gampad/jump?co=1&iu=/6978/reg_software/aiml&sz=300x50%7C300x100%7C300x250%7C300x251%7C300x252%7C300x600%7C300x601&tile=4&c=44aKfrWiyOs7CxP-czG1GX8gAAAMA&t=ct%3Dns%26unitnum%3D4%26raptor%3Dfalcon%26pos%3Dmid%26test%3D0
[5] https://pubads.g.doubleclick.net/gampad/jump?co=1&iu=/6978/reg_software/aiml&sz=300x50%7C300x100%7C300x250%7C300x251%7C300x252%7C300x600%7C300x601&tile=3&c=33aKfrWiyOs7CxP-czG1GX8gAAAMA&t=ct%3Dns%26unitnum%3D3%26raptor%3Deagle%26pos%3Dmid%26test%3D0
[6] https://www.theregister.com/2017/08/07/cba_blames_software_for_money_laundering_miss/
[7] https://www.theregister.com/2017/04/25/vmware_hyperconverged_commonwealth_bank/
[8] https://www.theregister.com/2025/08/20/tpg_telecom_iinet_breach/
[9] https://www.theregister.com/2025/08/20/kpmg_giant_prompt_tax_agent/
[10] https://www.commbank.com.au/articles/newsroom/2025/08/tech-ai-partnership.html
[11] https://medium.com/commbank-technology/the-evolution-of-ai-software-engineering-75a8a5a02c14
[12] https://pubads.g.doubleclick.net/gampad/jump?co=1&iu=/6978/reg_software/aiml&sz=300x50%7C300x100%7C300x250%7C300x251%7C300x252%7C300x600%7C300x601&tile=4&c=44aKfrWiyOs7CxP-czG1GX8gAAAMA&t=ct%3Dns%26unitnum%3D4%26raptor%3Dfalcon%26pos%3Dmid%26test%3D0
[13] https://whitepapers.theregister.com/