HSBC is undertaking significant cost-cutting measures within its UK wealth management division as part of a broader initiative to integrate artificial intelligence into its operations. The bank is consulting on plans that could result in substantial job reductions among relationship managers and financial advisers across the country, potentially halving the number of specialist and management roles in the division and reducing financial adviser positions by up to 70%.

HSBC, Europe’s largest lender, has not publicly disclosed the exact number of employees in its wealth management segment. However, its UK wealth business manages approximately £134 billion in assets, divided roughly equally between private banking and premier banking services. The bank employs an estimated 35,000 people in the United Kingdom.

Georges Elhedery, HSBC’s group chief executive, has emphasized the importance of staff embracing the bank’s AI-driven transformation rather than resisting it. Speaking at an investor day in May, Elhedery acknowledged that while generative AI would inevitably phase out certain jobs, it would also create new opportunities. He urged employees not to feel disenfranchised or overwhelmed by the change, stating that the priority was to maintain as many as 200,000 colleagues on the company’s journey through this technological shift, regardless of the eventual impact on workforce numbers.

HSBC is recognized as a leader in applying AI within the banking sector, ranking first in the UK and 11th globally on the Evident AI index, which assesses banks' AI capabilities. Earlier this year, HSBC announced a strategic partnership with Google Cloud to leverage AI for identifying priority projects aimed at generating up to $100 million in efficiency savings. Initial AI initiatives will focus on delivering “hyper-personalized” wealth management services, enhancing financial crime risk detection, and improving overall client experience.

The bank’s move follows similar cost-reduction trends across the financial industry. Standard Chartered, another major lender, revealed a plan to cut nearly 8,000 back-office jobs earlier this year amidst its own AI integration efforts. While Standard Chartered CEO Bill Winters initially described these changes as a shift from “lower-value human capital” to increased investment in capital, he later apologized for the phrasing following criticism.

HSBC’s approach signals a growing reliance on artificial intelligence to streamline operations and reduce expenses in wealth management, reflecting wider industry trends as banks seek to balance technological innovation with workforce adjustments.