HSBC’s top boss says artificial intelligence will both destroy and create certain jobs in the financial industry, but emphasised that Hong Kong’s biggest lender will focus on retraining its workforce to embrace the challenges ahead.

“We all know generative AI will destroy certain jobs and will create new jobs,” CEO Georges Elhedery said at an investor event in Hong Kong on Wednesday.

HSBC’s AI adoption pledge plan was announced a day after its rival, Standard Chartered, said it planned to use AI to automate its work process and replace 15 per cent of its back-office staff by 2030, which analysts estimate will result in a cut of about 7,000 jobs.

The moves by the two leading lenders showed that the financial industry was moving at great speed in adopting AI to enhance efficiency and drive profit growth by cutting costs – but it could lead to job losses in the sector, according to analysts.

“Our first mission is for employees to be given training capabilities and productivity tools, so that they can become future-ready, and a better, more productive, higher-performing version of themselves,” Elhedery said, referring to HSBC’s AI adoption plans.

“Our second mission is to simplify and scale how we operate. We are simplifying more than 50 work streams. We appointed a chief AI officer to review value streams, businesses, and functions, technology, and operations to help us redesign collectively with the help of AI and external partners.”

Elhedery said AI could help strengthen the customer experience as the technology speeds up background checks on clients, reducing their onboarding time by 50 per cent.