HSBC signs AI partnership with Google Cloud

HSBC has agreed a partnership with Google Cloud to develop more than 200 artificial intelligence use cases over the next two years. The bank expects the programme to generate hundreds of millions of pounds in combined revenue and efficiency gains. HSBC already runs about 600 applications on Google Cloud and will prioritise initiatives with estimated value above $100 million.

Under the agreement, HSBC will work with engineers from Google Cloud and Google DeepMind and gain access to Google’s agentic AI capabilities. Initial projects will focus on personalising customer experience with AI-driven support and real-time advice, improving financial crime detection and response, and expanding an AI agent used by staff.

HSBC expects the AI agent to cut administrative work and client meeting preparation from hours to minutes for thousands of employees. On financial crime, the bank plans to use AI and agentic systems to speed interventions and says the technology should allow it to intervene twice as fast when risk is detected. The bank intends to keep human judgement and final accountability in decision-making.

Georges Elhedery, group chief executive at HSBC, said: “AI is becoming one of the defining technologies of our time, allowing us to create a personalised experience for each customer, delivered in real time and at scale, while keeping human judgement, decision-making and accountability at the core.” Thomas Kurian, chief executive at Google Cloud, described the arrangement as “a blueprint for the financial services industry.”

HSBC said it will balance work between in-house teams and supplier partnerships. The bank has created a group AI chief role and appointed David Rice, who moves from chief operating officer of its corporate and institutional bank into the new position.

Industry research projects both savings and competitive effects. One consultancy estimated AI could deliver up to 20% savings after technology costs but suggested banking industry profits might fall about 9% as customers move money based on AI agent recommendations. A sector survey found that 59% of firms reported AI-driven productivity gains in the past 12 months, up from 32% the previous year.

HSBC said it will add more than 200 use cases to its Google Cloud deployment over two years and will prioritise those with the largest projected returns. The partnership gives the bank access to DeepMind engineers and Google Cloud tools as it scales AI across customer service, risk management and staff productivity efforts.