HSBC Says AI Will Eliminate And Create Banking Jobs

HSBC Chief Executive Georges Elhedery said artificial intelligence would eliminate some jobs while creating new roles across the financial sector, as the bank intensifies efforts to retrain employees for an AI-driven future.

Speaking at HSBC’s investor day event on Wednesday, Elhedery said the bank wanted staff to adapt to technological change rather than resist it.

“We all know generative AI will destroy certain jobs and will create new jobs,” Elhedery said during the event.

HSBC Pushes Workforce Retraining

Elhedery stressed that HSBC’s priority was to prepare its workforce for the transition rather than focus solely on future headcount reductions.

“But my initial mission is I need 200,000 colleagues with us on this journey. However many will be left at the end of the journey isn’t the problem,” he said.

“The problem is how can we make sure that those 200,000 colleagues have been given all the capabilities, the training, the tools to make themselves future ready, be more productive versions of themselves.”

He also said employees needed to avoid becoming anxious or resistant to technological disruption.

According to Elhedery, HSBC wanted staff to remain engaged with the bank’s transformation efforts rather than feel “disenfranchised, overwhelmed, and resisting the change.”

Standard Chartered Announces Major Job Cuts

The comments came a day after rival lender Standard Chartered announced plans to cut thousands of jobs over the coming years.

Standard Chartered chief executive Bill Winters said the bank intended to replace “lower-value human capital” with technology and other investments. He added that the affected roles were primarily non-client-facing positions.

The emerging markets-focused bank said it planned to reduce 15% of its corporate function workforce by 2030. Based on Reuters calculations, the move could result in more than 7,000 job losses from a division employing over 52,000 people.

Banks Accelerate AI Investments

The remarks from HSBC and Standard Chartered highlight how major financial institutions are increasingly using AI to cut costs, improve efficiency and strengthen cybersecurity capabilities.

Meanwhile, Japanese lender Mizuho Financial Group announced plans in March to reduce up to 5,000 jobs over the next decade.

HSBC has identified AI as a central part of its broader strategy to improve returns by automating operations and streamlining processes.

Earlier this year, the bank appointed David Rice as its first chief AI officer as part of its expanded AI push.

According to HSBC investor materials, the bank is deploying AI across several areas, including customer onboarding, Know Your Customer compliance, financial risk monitoring, contact centres and wealth management services.

Elhedery said HSBC was also using AI to simplify internal operations and deliver more personalised experiences for customers.

With inputs from Reuters