HSBC Turns To Google AI For Its Next Growth Phase, Targets $100 Mn Revenue Boost

HSBC has entered into a multi-year partnership with Google Cloud to accelerate the use of artificial intelligence (AI) across its global operations, with the bank expecting a range of AI-led initiatives to generate more than $100 million in additional revenue or efficiency gains.

The collaboration will give HSBC access to Google's Gemini models, the Gemini Enterprise Agent Platform and engineering support from Google Cloud and Google DeepMind teams, said HSBC in a statement on Tuesday.

It said the partnership is expected to support more than 200 new AI use cases over the next two years, adding to the more than 600 applications it already operates on Google Cloud.

According to the bank, the initial focus areas include personalised wealth management services, financial crime risk management and AI-powered decision support tools for frontline employees and relationship managers.

The bank said AI-driven insights would help relationship managers deliver more tailored financial guidance, while new financial crime systems are expected to improve risk detection and enable faster intervention across nearly one billion transactions monitored every month.

"AI is becoming one of the defining technologies of our time, allowing us to create a personalised experience for each customer, delivered in real time and at scale, while keeping human judgement, decision-making, and accountability at the core," said Georges Elhedery, HSBC Group CEO, in a statement.

Google Cloud CEO Thomas Kurian described the collaboration as a "blueprint for the future of the financial services industry."

CEO Urges Employees to Embrace AI

The announcement follows remarks made by Elhedery in May, when he encouraged HSBC employees to adapt to the growing use of AI rather than resist it.

"We all know generative AI will destroy certain jobs and will create new jobs,” Elhedery told HSBC staff, as per Reuters.

He also urged the staff to ensure they were "not fighting us, not disenfranchised, not anxious, overwhelmed, and resisting the change", while arguing that AI could help employees become "more productive versions of themselves".

HSBC is among the first major global banks to publicly outline how AI could be used to drive both revenue growth and operational efficiencies.

The bank has been evaluating workforce reductions over the coming years as AI adoption expands. About 20,000 roles or 10% of the employees could be laid off, Bloomberg reported citing a person aware of the matter.

Banks Prepare For AI Disruption

HSBC's move comes as banks worldwide increasingly deploy AI to automate routine processes, improve customer service and strengthen compliance systems.

Standard Chartered announced plans in May to eliminate nearly 8,000 jobs by 2030 as part of its technology-led transformation, as per Reuters.

Executives at several global lenders, including JPMorgan Chase, Citigroup and Goldman Sachs, have also acknowledged that AI will likely reduce demand for certain roles while reshaping others.

However, industry leaders continue to stress the need for reskilling programmes and human oversight as AI becomes more deeply embedded in financial services.