HSBC plans AI institute in Hong Kong

Georges Elhedery announced on Monday that HSBC will establish an artificial intelligence and emerging technology institute in Hong Kong. The chief executive made the statement during the city's Fintech Week event. This initiative follows the bank's earlier decision to open a similar center in Singapore.

The new unit is scheduled to launch in the first quarter of 2027. HSBC will collaborate with the Hong Kong University of Science and Technology as its primary academic partner. Elhedery did not specify the number of staff planned for the institute. The bank intends to relocate the center to the Northern Metropolis once the site is prepared. This area is part of a major development project adjacent to mainland China.

The move follows a July announcement that HSBC would hire more than 100 AI specialists for its Singapore office. Globally, banks are restructuring their workforces as they integrate AI tools. Citi, Standard Chartered, and Barclays have all outlined plans to reduce headcounts this year.

Eddie Yue, the chief executive of Hong Kong's de facto central bank, noted that about 80% of local banks are already using AI or generative AI technologies. HSBC employs 28,000 people in Hong Kong, making it one of the region's largest private-sector employers. The bank is currently implementing AI training for its entire global workforce of approximately 200,000 employees.

"AI is going to be disruptive. It's going to transform jobs," Elhedery said.