The chief executive of international banking corporation HSBC warned Wednesday that artificial intelligence technology will both eliminate existing positions and generate new employment opportunities within the financial services industry, while announcing the company’s commitment to retrain its workforce for this transition.
Georges Elhedery addressed investors during a company event, emphasizing that employees must welcome AI-driven transformation instead of opposing it and collaborate with management to navigate emerging technology.
“We all know generative AI will destroy certain jobs and will create new jobs,” Elhedery said.
“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.
“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.”
Elhedery stressed that HSBC workers must avoid being “not fighting us, not disenfranchised, not anxious, overwhelmed, and resisting the change.”
The head of Europe’s largest banking institution made these remarks one day following competitor Standard Chartered’s announcement of plans to eliminate thousands of positions over the coming years, marking the first major global bank to openly disclose artificial intelligence’s workforce impact.
During Standard Chartered’s investor presentation, chief executive Bill Winters explained the institution’s intention to substitute “lower-value human capital” with technological solutions and other investments.
Winters noted the affected positions were primarily those without direct customer interaction.
The emerging market-focused financial institution announced plans to reduce corporate function roles by 15% before 2030, which Reuters calculations indicate would eliminate over 7,000 positions from the more than 52,000 employees in such departments.
These statements from both HSBC and Standard Chartered demonstrate how leading global financial institutions are becoming increasingly focused on cost management while working to incorporate advanced AI systems and defend against growing cybersecurity risks. Japanese banking company Mizuho announced in March plans for up to 5,000 position cuts spanning ten years.
HSBC, which named David Rice as its inaugural chief AI officer in March, has identified artificial intelligence as central to the institution’s broader strategic objective of improving returns through savings achieved by automating and streamlining operational processes.
The financial institution is implementing AI technology across various departments and business units to simplify operations and customize content for clients, according to Elhedery.
Company investor materials indicate that customer onboarding and Know Your Customer procedures, financial risk assessment and monitoring, contact centers, and wealth management services are all undergoing AI-driven updates.
