Hong Kong

HSBC Chief Executive Officer Georges Elhedery has said that the growing adoption of artificial intelligence across the banking sector is expected to both eliminate and generate jobs, while emphasising that the lender is focusing heavily on reskilling employees to prepare them for the transition.

According to a Reuters report, Elhedery’s remarks come at a time when companies worldwide are rapidly integrating AI technologies into their operations, sparking concerns about large-scale workforce reductions. Major technology firms in Silicon Valley have already announced layoffs, citing increased AI adoption and automation of certain functions. Meta is reportedly cutting around 8,000 jobs, while LinkedIn is reducing more than 600 positions.

The comments also follow a recent announcement by Standard Chartered that it could eliminate nearly 7,000 roles as part of its AI-driven restructuring plans. The bank is reportedly revamping several corporate functions, with about 15 per cent of roles potentially affected.

A Wall Street Journal report quoted Standard Chartered CEO Bill Winters as saying that the bank was investing in capabilities aimed at strengthening its long-term competitiveness, boosting efficiency and delivering stronger returns.

Addressing stakeholders during an investor day event, Elhedery stressed that employees must adapt to technological change instead of resisting it. He said the bank’s priority was to bring its workforce along in the AI transformation journey.

According to Reuters, Elhedery remarked that the key challenge was not whether all employees would remain at the end of the transition, but how effectively the bank could prepare and train its nearly 200,000 employees for the future workplace.

Both HSBC and Standard Chartered are increasingly relying on AI technologies to reduce costs, improve operational efficiency and enhance returns by automating various business processes.

In March this year, HSBC appointed David Rice as its first Chief AI Officer. The newly created role is focused on deploying AI models to automate operations, streamline workflows and improve productivity and profitability.

The bank is also introducing AI-led changes across several business functions, including customer onboarding, Know Your Customer (KYC) compliance, financial risk assessment, monitoring systems, contact centres and wealth management services, according to Reuters citing HSBC’s investor presentation.