Adapt, not resist: HSBC chief on how not to lose your job to AI

Artificial intelligence will "destroy" certain positions in the market, but at the same time will create others, said at a meeting with investors and analysts in Hong Kong, CEO of one of Europe's largest banks HSBC Georges Elhederi, writes Bloomberg. HSBC employees in this regard, he urged to adapt to the new AI realities and technological shift, rather than resist. However, not everyone on the market agrees with this position.

Georges Elhederi said that the bank's staff needs to embrace the changes caused by AI, rather than resist them, and cooperate with the financial organization in mastering new technologies, Reuters noted, citing his speech by Elhederi in Hong Kong. According to the bank chief, HSBC is already retraining its staff to meet the challenges from the widespread introduction of AI into business processes, in particular by providing employees with training and tools to write code.

"We all know that generative AI will destroy certain jobs and create new ones," Elhederi said. - But my primary mission is that I need 200,000 colleagues with us on this journey [of development during the AI boom]. Exactly how many will be left at the end is not important. The problem is how do we make sure that those 200,000 colleagues are given all the opportunities, training and tools to make them future-ready and help them become more productive versions of themselves," he added (quoted by Reuters).

Therefore, employees, according to the bank's chief executive, should "walk with HSBC's management on this journey, rather than fight" against progress; "not feel left out, anxious, overwhelmed or resistant to change".

HSBC, which appointed David Rice as its first AI director in March, is positioning artificial intelligence as key to achieving its broader strategic goal of increasing profitability by automating and optimizing processes, Reuters points out. Elhederi said the bank is deploying AI across functions and departments to simplify operations and personalize content for customers. According to the bank's investor presentation, HSBC is already implementing AI in customer registration and document verification processes, financial risk management, call center operations, and asset management.

Despite the positive attitude of the head of HSBC, the number of the bank's staff is shrinking amid the introduction of AI in the processes, notes Bloomberg. In March, the agency reported that HSBC is considering significant job cuts in the coming years. These changes may eventually affect about 20 thousand employees - or about 10% of the total staff of the company, said a Bloomberg source familiar with the discussions on this issue.

According to estimates by McKinsey & Co. analytical company, about 30% of working time in finance and insurance may be automated by 2030. And according to a study by Citigroup, more than half of jobs in banking have a high potential to be replaced by technology, emphasizes Bloomberg.

The statement by HSBC's head came just a day after the bank's rival Standard Chartered (StanChart) announced it would cut thousands of jobs in the coming years. He became the first among global banks to openly disclose the impact of AI on headcount, Reuters specifies.

StanChart CEO Bill Winters said on Ma 19 that the bank intends to replace lower-value human capital with AI. He added that the cuts will mainly affect positions not directly related to customer service. In particular, emerging markets-focused Standard Chartered said it will cut 15% of positions in internal departments and services by 2030. According to Reuters calculations, this will lead to the dismissal of more than 7,000 people out of more than 52,000 employees of the bank employed in such positions.

This article was AI-translated and verified by a human editor