HSBC has appointed its first head of AI to drive the adoption of the technology across the bank, as chief executive Georges Elhedery continues its sweeping restructuring.
David Rice, currently chief operating officer for the bank’s corporate and institutional banking business, will become HSBC’s first chief AI officer in April.
“Our customers increasingly expect their bank to deliver services uniquely aligned to their specific needs, and fast. That’s why we’re building a bank that is designed for the future. AI plays a key role in how we get there,” Elhedery said in a statement on Monday.
HSBC’s new appointment comes during the bank’s widespread restructuring, as the lender pushes forward with its plan to cut staff and close business units, reinvesting money into high-growth areas.
David Rice, HSBC’s new head of AI© HSBC
The bank expects to deliver $1.5bn in subsequent cost savings six months ahead of schedule, with the savings expected to be realised in the first half of this year.
HSBC said last year it would reduce global staff costs by 8 per cent, with senior managers and those in the newly merged wholesale corporate and institutional arm particularly vulnerable to redundancy.
Plans to expand in Asia also left the bank’s UK head office potentially at higher risk of staff cuts. Rice, however, will continue to be based in London.
The new role comes as part of a wider focus on deploying the technology at scale across the bank by making generative AI available to all staff and equipping customer-facing employees with the AI tools needed to offer more personalised services, said Elhedery.
Alongside Rice’s appointment, HSBC also announced plans to expand the remit of its chief technology officer to strengthen the bank’s technology foundations and deploy AI at scale.
This includes modernising core platforms, building a central AI platform for employees and developing strategic partnerships.
The announcement comes as other banks scale their AI executive suite, with NatWest appointing its first head of AI research in June after Lloyds appointed its first head of AI and advanced analytics a year earlier.