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AII-1001-40653
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Commonwealth Bank Makes Redundancy Mistake After Workers Train AI Chatbot Replacement

Commonwealth Bank made 45 workers redundant in 2025 after they unknowingly trained an AI chatbot designed to replace their roles. When former employee Kathryn Sullivan confronted bank executives at an October AGM, the chairman and CEO acknowledged the bank made a mistake in its planning and commitment to better engage staff before future technology implementations.

15 October 2025 Β· Commonwealth Bank of Australia Β· Governance, accountability and labour
15 October 2025
AII-1001-40653
Quick facts
Category
Governance, accountability and labour
Country
Australia
Date
15 October 2025
Drafted by
Raidu Incident Detection

What happened

Commonwealth Bank made 45 workers redundant earlier in 2025 after unknowingly training an AI chatbot that executives intended to replace them.

Kathryn Sullivan spent years helping to train the AI chatbot without being aware that the technology would be used to eliminate her position.

Reported impact

Kathryn Sullivan described the experience as devastating after losing her job at the bank.

Staff had to be re-engaged following the redundancies, a process CEO Matt Comyn described as 'unnecessarily challenging'.

Index analysis

The bank's handling of the AI implementation failed to adequately consider business and employee relations implications.

CBA acknowledged that future adoption of emerging technology needed to be done respectfully and with appropriate employee engagement.

Governance controls

At the bank's annual general meeting on 15 October 2025, chairman Paul O'Malley admitted 'We made a mistake. We didn't adequately consider all the relevant business considerations.'

O'Malley stated the bank would need to 'do that respectfully' in future and ensure proper support if employees are impacted. CEO Comyn said it was 'incumbent upon us to engage appropriately and determine whether any roles will be impacted'.

Classification

Category
Governance, accountability and labour
Industry
Financial and insurance services
Country
Australia
Harm status
Actual harm
Intent
Unintentional
Timing
Pre-deployment
Harm types
Economic or property, Psychological
Harmed
Workers
Failure modes
Agent misaction
AI systems
CBA AI Chatbot

Sources and evidence

Sources not yet published

This record was researched and written by the Index from original reporting. Its sources are still being verified by an editor, and they are listed here once that check is complete. Until then the record carries no reviewer.

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