LONDON ― HSBC on Wednesday announced a multiyear partnership with Alphabet-owned Google Cloud focused on building the British bank’s artificial intelligence (AI) capabilities.
The tie-up marks the latest step in HSBC CEO Georges Elhedery’s drive to embrace the revenue-generating and cost-savings power of AI which can process vast amounts of data, automating tasks previously done by people. The partnership, which HSBC said will focus on areas such as advice for wealth management clients and financial crime risk management, shows how banks worldwide are accelerating their adoption of AI as they compete in a technology arms race with each other. HSBC says partnership with Google cloud should enable 200 more tasks using AI over the next two years. Announcement comes after Elhedery in May urged staff to embrace AI; warned the technology will “destroy certain jobs and create new jobs.” Bank says Google Cloud and Google DeepMind engineering teams will help it identify priority projects that could each deliver more than $100 million in revenue gains or efficiency improvements. HSBC will access Google’s Gemini model; the bank is already running 600 applications on Google Cloud. Project will target three main areas: personalized wealth management support; financial crime risk management; and AI-empowered decision-making for frontline staff to reduce time spent on administration and meeting preparation. “A partnership like this one with Google Cloud helps us empower our colleagues with the tools they need to be future-ready and supports our work in building a simple, agile, faster and more personal HSBC,” Elhedery said.
