LONDON, March 23 (Reuters) - HSBC has appointed David Rice as its first ever Chief AI Officer, the British bank said on Monday, as it seeks to cut costs by increasing the use of generative AI
HSBC appoints first chief AI officer as it seeks cost cuts
HSBC's Strategic Move Towards AI Integration
LONDON, March 23 (Reuters) - HSBC has appointed David Rice as its first chief AI officer, the British bank said on Monday, as it seeks to cut costs and improve performance by increasing the use of generative AI technology across its businesses worldwide.
AI as a Driver for Financial Performance
HSBC CEO Georges Elhedery has highlighted AI as the key to the bank's wider strategic goal of increasing its return on tangible equity to above 17% for 2026-2028, via savings from automating and streamlining its processes.
Background of David Rice
- Rice was previously the chief operating officer for HSBC’s Corporate and Institutional Banking business.
AI Adoption in the Banking Sector
- Banks worldwide are trying to harness AI to improve tasks such as coding, fraud detection, and credit applications.
Industry Investment in Generative AI
- "If you ask me where is the biggest investment going into new technology today, it is definitely going into generative AI," Elhedery told investors on a conference call on February 25.
HSBC's Unique Approach to AI Leadership
- Having a formal head of AI is relatively unusual for big global banks. Many rivals make AI responsibilities part of a chief technology officer's wider remit.
Potential Impact on Jobs
- HSBC has not disclosed how many jobs it may cut as a result of AI improvements. Bloomberg News reported earlier this month the bank could ultimately shed 20,000 roles, saying the plans were at an early stage and no decisions had been taken.
(Reporting by Lawrence White; Editing by Kirsten Donovan and Barbara Lewis)
