LONDON: HSBC appealed to staff members not to fight AI on Wednesday (May 20), 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 “lower-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 members 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 per cent of its corporate function roles by 2030, highlighting how staff members 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 members 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 members in the past year as a result of using AI.
Offshore workers, on which financial services firms rely to run many of their IT services at locations including India or Poland, and young, new workers are bearing the brunt, Morgan Stanley’s report said.
Banks have been reluctant to publicly discuss the scale of job losses, although this is gradually changing.
Goldman Sachs told staff members in October of potential job cuts and a hiring slowdown, an internal memo seen by Reuters showed, as the Wall Street giant embraced AI. Wells Fargo CEO Charlie Scharf said in December it has not reduced the number of people it employs as a result of AI, but was “getting a lot more done” because of the technology.
