Stock Markets May 19, 2026 11:17 PM

HSBC CEO Urges Staff to Embrace AI as Bank Retrains Workforce for Automation

Georges Elhedery says generative AI will both eliminate and create roles; HSBC rolls out training while peers announce job cuts

By Leila Farooq

HSBC Chief Executive Georges Elhedery told investors that generative AI will remove some jobs and create others, and that the bank is retraining its roughly 200,000 staff to be productive with new tools. His comments came amid wider industry moves to use AI to cut costs, including Standard Chartered’s announced reduction in corporate function roles and other global lenders signalling workforce changes.

HSBC CEO Urges Staff to Embrace AI as Bank Retrains Workforce for Automation

Key Points

  • HSBC CEO Georges Elhedery told investors generative AI will both destroy and create jobs and emphasised retraining and tools to make the bank's 200,000 staff "future ready" - impacting bank operations and human resources.
  • Standard Chartered announced plans to reduce corporate function roles by 15% by 2030, a move Reuters calculated could mean over 7,000 redundancies, highlighting sector-wide cost-cutting and automation in banking.
  • HSBC has appointed a chief AI officer and is deploying AI across onboarding, KYC, risk monitoring, contact centres, and wealth management to streamline processes and personalise customer interactions, affecting technology and service delivery in financial services.

HSBC Chief Executive Georges Elhedery said on Wednesday that generative artificial intelligence will both eliminate and generate jobs within the financial sector, and that the bank is undertaking retraining programs so staff can adapt to the new technology.

Speaking at an investor day event, Elhedery framed AI-driven change as an inevitability that employees should work with rather than resist. "We all know generative AI will destroy certain jobs and will create new jobs," he said, stressing the banks intention to keep its workforce aligned with the shift.

Elhedery reiterated the scale of the challenge and the banks initial objective: "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 isnt 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."

The CEO added that staff must not be alienated by the changes. He warned against employees becoming "not fighting us, not disenfranchised, not anxious, overwhelmed, and resisting the change," underscoring the banks focus on managing workforce sentiment as it deploys technology.


Elhederys comments came a day after Standard Chartered outlined a plan to reduce thousands of roles over coming years and directly linked some of that restructuring to AIs impact on labour. StanChart chief Bill Winters said the bank intends to replace "lower-value human capital" with technology and other investments, noting the roles affected are primarily non-client facing.

The emerging-market focused lender said it would cut 15% of its corporate function roles by 2030, which, according to a Reuters calculation, would translate into more than 7,000 redundancies out of the more than 52,000 people working in such roles. Those public announcements signal a broader push among top financial institutions to combine AI integration with cost reduction.


Industry moves to pare costs via technology are not isolated. The article noted that Mizuho in March unveiled up to 5,000 job cuts over a decade. Against that backdrop, HSBC has positioned AI as central to its strategy to lift returns by automating and streamlining operations.

In March HSBC appointed David Rice as its first chief AI officer, part of a leadership push to govern and scale AI activity across the bank. According to the banks investor presentation, AI is being rolled out across numerous functions and businesses to simplify operations and to personalise content for customers.

Specific areas undergoing an AI-led revamp include customer onboarding and Know Your Customer processes, financial risk and monitoring systems, contact centres, and wealth management. The bank argues these deployments will both simplify internal processes and tailor customer interactions.

Market data included during the event showed moves in related share prices, with HSBA down 0.81%, STAN down 2.21% and 8411 up 0.46% at the quoted snapshot in the presentation materials.


Elhederys remarks, set against StanCharts explicit job-reduction plan, illustrate divergent but related approaches within the industry: one emphasising retraining and internal preparedness, the other announcing headcount reductions tied to automation investments. Both responses reflect cost-sensitivity and an effort to integrate advanced AI models while also addressing associated operational risks.

The narrative from HSBC centres on equipping a large employee base with capabilities and tools to remain productive amid technological change. Where the broader sector will land on net employment remains unclear from the statements, but the announcements confirm that banks view AI as a lever for efficiency and an area requiring active workforce planning.

Risks

  • Potential workforce reductions as banks adopt AI-driven automation, with direct implications for corporate functions and non-client-facing roles in the banking sector.
  • Operational and cyber risks tied to rapid AI integration as institutions move to adopt frontier models and digitise core processes, requiring investment in governance and security.
  • Uncertainty over net employment outcomes and the effectiveness of retraining programs in fully offsetting job displacement, affecting labour markets within financial services.

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