By Lawrence White and Selena Li LONDON/HONG KONG, May 20 HSBC appealed to staff not to fight AI on Wednesday, saying it would destroy jobs while creating new ones, as banking rival Standard Chartered sought to calm workers over comments that the technology would replace…
ower-value human capital”. The predictions from two of the world’s biggest banks are the clearest sign yet about the upheaval from a technology that can consume and process vast swathes of data, completing tasks previously done by people
CEO Georges Elhedery urged HSBC staff to make sure they were “not fighting us, not disenfranchised, not anxious, overwhelmed, and resisting the change,” pledging that AI could make them “more productive versions of themselves”. “We all know generative AI will destroy certain jobs and will create new jobs,” Elhedery said. Standard Chartered said on Tuesday it would eliminate almost 8,000 jobs as it replaced what its CEO called “lower-value human capital” with technology. Bill Winters said StanChart would cut 15% of its corporate function roles by 2030, highlighting how staff in so-called back office roles are particularly vulnerable.
HSBC employs more than 211,000 people, while StanChart has roughly 83,000 employees. Underscoring the sensitivity of the issue, Winters sought to limit the fallout in a memo on Wednesday, saying staff were valued and any changes would be handled with “thought and care”. Morgan Stanley analysts found that companies in banking, technology and professional services had shed one in 20 staff in the past year as a result of using AI.