LONDON, April 2, 2026, 12:22 BST
HSBC Holdings Plc CEO Georges Elhedery says the bank now has over 100 generative AI tools—software capable of drafting, summarizing, and coding—about half of which are already in use. That’s one of the most concrete indications yet of just how aggressively HSBC is adopting the technology. According to a transcript the bank released Thursday, internal productivity tools have already reached 170,000 staff. Elhedery made it clear: using this technology “is not optional” as HSBC gears up its workforce for the next five years. 1
The update’s significance comes down to its concrete figures—Elhedery describes a restructuring that’s not yet complete. On a separate transcript, he claimed he’d been “ruthless about killing” complexity, slashed HSBC’s group operating committee from over 20 people to about 12, and shifted around 60% of revenue to the control of a single executive instead of distributing it across several. 2
Noteworthy timing here: David Rice stepped in as HSBC’s inaugural chief AI officer on April 1—a position Reuters points out is still something of a rarity at major global banks. Elhedery, meanwhile, has linked automation with a targeted return on tangible equity of at least 17% for 2026 through 2028, a benchmark for lender profitability. 3
HSBC’s February numbers tell the story. Pretax profit for 2025 dropped to $29.9 billion, weighed down by $4.9 billion in one-off charges. Yet, the bank lifted its medium-term profitability goal and expects operating expenses—on a target basis—to edge up just around 1% in 2026, even as spending on tech and streamlining stays in focus. 4
Competitors are making similar moves, but a dedicated AI head isn’t always part of the mix. Back in February, JPMorgan tapped Guy Halamish as chief operating officer for its commercial and investment bank, giving him the reins on data and AI strategy. Citigroup, for its part, pushed out AI tools to 140,000 staff spanning eight countries late last year. 5
The shift isn’t without risks. Steve Albrecht, who heads HSBC’s AI Review Committee, flagged that generative AI still makes mistakes and called for humans to stay involved—most tools are either in early-stage testing or locked down to small pilot groups for now. Reuters, citing Bloomberg in March, also pointed to potential staff cuts at HSBC that could reach around 20,000 positions, though sources said the review was preliminary and the bank offered no comment. 6
AI ambitions come as the group continues to trim down. Back in February, Reuters broke the news that HSBC kicked off the sale of its Singapore life insurance manufacturing arm, targeting a value north of $1 billion—an Elhedery-led move aimed at paring back and moving out of non-core lines. 7
Elhedery is pitching the strategy as a move to boost competitiveness and productivity—not just about cutting costs. According to him, 30,000 technologists at HSBC already have access to generative AI, and the bank is now fixing code weaknesses at a pace 10 times quicker than it did a year ago. He points to these results as gains materializing today, not some far-off promise. 8
