HSBC has appointed David Rice as its first chief AI officer. Mr Rice, who previously served as HSBC’s chief operating officer of corporate and institutional banking, will take up his role on April 1. The move comes as the British bank reportedly seeks to reduce costs and improve performance by increasing the use of generative AI across its operations around the world, Reuters reports.This comes after the bank’s CEO Georges Erkederi identified AI as a key part of the bank’s broader strategy to increase return on tangible equity to over 17% between 2026 and 2028. This can be achieved by supporting savings through process automation and streamlining.Earlier this month, Bloomberg News also reported that HSBC could ultimately cut 20,000 jobs, adding that the plan was in its early stages and no decisions had been made yet. Additionally, HSBC has not disclosed how many jobs could be cut due to AI improvements.In addition to David’s appointment, HSBC said it would also expand Mario Shamtani’s role as chief technology officer (CTO) to support the broader use of AI. His work includes updating core systems, building a central AI platform for employees to use various models, and managing key partnerships.
What HSBC said about appointing its first-ever chief AI officer
The British bank wrote in a blog post: “This new role provides clear leadership for the company. Introduction of AI It was established within HSBC to support our ambition to build a bank designed for the future by incorporating AI solutions that benefit colleagues and customers.The appointment comes as part of a broader focus to deploy AI at scale across HSBC, by making generative AI tools available to all staff to simplify processes, procedures and policies, and provide customer-facing colleagues with the AI tools they need to deliver a more personalized service. ” Speaking about his appointment, Mr. Elhederi said: “Our customers increasingly expect their banks to quickly deliver services uniquely tailored to their specific needs. That’s why we’re building a bank designed for the future, and AI will play a key role in getting us there.”Our goal here is simple. Empower your colleagues to use AI to create personalized experiences for each customer and deliver them securely, in real-time, and at scale, while keeping human judgment, decision-making, and accountability at the core. David will help us realize our ambitions in this area. ”“AI will play an increasing role in HSBC’s future plans, so I’m excited to take on this new role to help drive our transformation agenda.” Rice pointed out.This comes as banks around the world are using AI to improve tasks such as coding, fraud detection, and credit apps. However, the Reuters report points out that it is unusual for large global banks to have a dedicated head of AI. Many other banks include AI responsibilities under the broader role of the chief technology officer.In a conference call with investors, Elhederi said (as reviewed by Reuters). “If you ask me where the biggest investments in new technology are going today, it’s definitely in Generative Al.”
