Bill Winters, the chief executive of British multinational bank Standard Chartered, has apologized for the “upset” he caused employees after he said artificial intelligence (AI) would replace “less valuable human capital”, Reuters reports.
In recent weeks, executives at internationally renowned banks have been more direct about the staff cuts they expect to make as artificial intelligence makes routine tasks more efficient.
Previously, they generally avoided naming a direct link between these layoffs and the implementation of AI tools, preferring to focus on productivity gains.
In a new message posted on LinkedIn, Winters said he receives questions about his choice of words, “which I know have caused some colleagues upset.”
“For that I apologize,” he added.
The banker's comments drew the attention of regulators
Reuters notes that this is his second message to clarify his earlier comments. In the other message he repeated the idea that caused consternation and tried to explain why his bank is cutting about 15% of its back-office positions.
“Back office” is a business term that refers to internal departments that do not interact directly with customers but support the operation of the company.
“It's not about cutting costs. In some cases, it's about replacing lower-value human capital with the financial capital and investment capital that we allocate,” Winters said on Tuesday, as Standard Chartered announced it would cut nearly 8,000 jobs as it embraces AI technology.
Bloomberg reported on Thursday that regulators in Hong Kong and Singapore have sought clarification from Standard Chartered about Winters' statements.
In his new LinkedIn message, Winters included a full transcript of his remarks, which he said demonstrate he values his colleagues “at the highest level.”
He also recalled the bank's message that it offers “every opportunity” to employees at risk of redundancy who want to learn new skills.
