Commonwealth Bank will reverse its controversial plan to cut dozens of jobs and replace them with an AI chatbot, admitting the move was a mistake.

Australia’s largest bank revealed last month that it would axe 45 call centre positions after rolling out an AI voicebot to handle customer queries.

But the bank has since backtracked, telling affected staff they could remain in their current roles or opt for a voluntary redundancy payout.

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The decision came as CBA, despite insisting its voicebot had cut call volumes by 2000 a week, was forced to concede that calls had risen, with managers resorting to overtime and team leaders being pulled onto the phones, the Australian Financial Review reports.

A spokesperson for CBA said the decision to cut 45 roles was an “error”.

“CBA’s initial assessment that the 45 roles in our Customer Service Direct business were not required did not adequately consider all relevant business considerations and this error meant the roles were not redundant,” the spokesperson said.

“We have apologised to the employees concerned and acknowledge we should have been more thorough in our assessment of the roles required.

“We are currently supporting affected employees and have provided them with choice regarding continuing in their current roles, pursuing redeployment within CBA or to proceed with leaving the organisation.

The announcement coincided with the Labor Government’s Economic Reform Roundtable on Wednesday, when discussions shifted towards reviewing current AI regulations, which unions had been pushing for.

Finance Sector Union National Secretary Julia Angrisano hailed the reversal a “massive win” but stressed the ordeal had already taken a toll on workers’ wellbeing.

“The damage is already done for the 45 workers who endured weeks of unnecessary stress, not knowing if they would be able to pay bills or support their families,” she added.

“CBA has been caught out trying to dress up job cuts as innovation. Using AI as a cover for slashing secure jobs is a cynical cost-cutting exercise, and workers know it.

“CBA likes to talk about being a digital leader, but real leadership means investing in your people, not tossing them aside and blaming the technology.”

CBA said they would review its internal process to improve its approach moving forward.