HSBC CEO Georges Elhedery admitted on Wednesday that generative artificial intelligence will lead to both the elimination of some positions in the financial sector and the creation of new roles. During the meeting with investors, he emphasized that the bank is already intensively training employees to prepare them for the upcoming changes.
“We all know that generative AI will destroy some jobs and create new ones.” Elhedery said. — “My first mission is for 200,000 collaborators to walk this path with us. How many of them will remain at the end is not crucial.”
As he noted, the key challenge is to provide employees with appropriate competences, tools and training so that they become “ready for the future” and more productive.
“Don't fight the bank, don't be afraid of changes”
The head of HSBC also clearly outlined the social side of technological transformation. In his opinion, employees must accept change instead of resisting it.
“We need people who don't fight the bank, don't feel excluded, aren't paralyzed by fear and don't resist change.” – said Elhedery.
HSBC employs approximately 200,000 people globally. people and is the largest bank in Europe.
- Read also: Wave of layoffs in banks. AI forces cuts on global giants
Standard Chartered: 'lower value human capital' to be replaced
Elhedery's statements were made a day after rival Standard Chartered announced plans to significantly reduce employment in connection with the implementation of AI. It is the first global bank to directly link the announced layoffs with the development of artificial intelligence.
Standard Chartered CEO Bill Winters said during a meeting with investors that the bank wants to replace “lower value human capital” technology and other investments. The reductions will mainly concern positions not directly related to customer service.
The bank focused on emerging markets plans to reduce employment in corporate functions by 15% by 2030. According to Reuters calculations, this means over 7,000. layoffs from a group of approximately 52,000 employees in these areas.
- Read also: HSBC is preparing for further layoffs. Managers try to retain their positions in unusual ways
AI as a cost-cutting tool
The declarations of HSBC and Standard Chartered show that the largest financial institutions are increasingly focusing on cost control and the rapid implementation of advanced AI models – also in response to growing cyber threats.
The Japanese bank Mizuho announced in March a reduction of up to PLN 5,000. jobs in the perspective of a decade.
HSBC, which appointed David Rice as its first chief artificial intelligence officer in March, sees AI as a key part of its strategy to improve profitability. The bank counts on savings resulting from automation and simplification of processes.
According to HSBC's investor presentation, artificial intelligence is being implemented in many areas of the bank's operations. This includes, among others: customer onboarding processes and Know Your Customer (KYC) procedures, financial risk management and monitoring, customer service centers and wealth management services.
The goal is to both simplify operations and better personalize the offering to customers – while reducing operating costs.
