AI will destroy some jobs and create new ones, says HSBC CEO

Hong Kong, May 20 : HSBC CEO Georges Elhedery has said that the widespread deployment of AI tools across the financial industry will destroy and create new jobs and that the bank is taking steps to retrain its workforce to take on the new challenges, according to Reuters.

The comments from one of the top bankers came at a moment when the AI wave is sweeping across corporations, stoking fears of job losses. Silicon Valley giants have already announced job cuts, emphasising that the AI usage could make certain roles redundant. Meta is laying off 8,000 of its staff, and LinkedIn is cutting more than 600 jobs.

The development comes a day after another financial industry giant, Standard Chartered, said that 7,000 jobs could go as it steps up its efforts to deploy AI. The bank is looking at revamping its corporate functions, which could lead to 15% roles getting slashed.

"We are investing in the capabilities that will compound our competitive advantages and drive sustainable growth and higher quality returns over time, with clear targets in place," a WSJ report quoted Standard Chartered's chief executive Bill Winters as saying.

The HSBC chief executive informed stakeholders at the investor day event that the staff needs to adapt to changes rather than resist it and work with the bank on navigating the challenges posed by the AI boom.

"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 Reuters report quoted the CEO as saying.

He added that the real challenge is how to ensure that the 200,000 staff is trained to make them ready for future changes.

Both rival banks are leaning on the deployment of AI tools across their respective organisations for cutting costs and increasing returns by streamlining operations.

HSBC, in March, had appointed David Rice as its first chief AI officer. The role envisages using AI models for streamlining and automating operations and increasing savings and returns.

Several functions from customer onboarding and Know Your Customer function, financial risk and monitoring, contact centres, and wealth management, are also undergoing an AI revamp, the Reuters report quoted from the bank's investor presentation.

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