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.
— ANI
Reader Comments
Honestly, we should embrace AI rather than fear it! It's like when computers came in - everyone thought typists would be jobless, but new roles emerged. Our IT sector in Bengaluru and Hyderabad is proof that Indians adapt fast. But the government needs to step in with proper skill development programs! 🇮🇳
"My initial mission is I need 200,000 colleagues with us on this journey. However, many will be left at the end" - This statement is terrifying if you think about it! It basically says some will be left behind. In a country like India with a billion population, every job matters. Banks should focus on human touch, not just automation.
As someone working in the Indian IT sector, I see this differently. AI will create more specialised roles in data science, prompt engineering, and AI ethics. But the real question is - will our education system keep up? The rote learning in our schools won't cut it anymore. We need a complete overhaul.
I'm a bank employee in Mumbai, and honestly, this scares me. Our manager already started talking about this - "AI will handle data entry, you'll focus on customer solutions." But what about the ground staff, the people who actually help aunties fill forms? Not everyone is tech-savvy. I hope they don't forget the human element. 😔
Interesting perspective from HSBC. In the US, we've already seen massive layoffs in tech. The key will be whether Indian banks can implement AI while protecting jobs - unlike the Western model of mass lay
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