HSBC CFO sees AI as key to banking efficiency, not a replacement for humans

HSBC sees AI as an opportunity to enhance human work rather than replace it, according to the bank’s Group CFO Pam Kaur.

In an exclusive conversation with CNBC-TV18, Kaur said, “AI is a tool for humans; it doesn’t replace humans.” She stressed that while AI may take over routine tasks, it allows employees to focus on higher-value and forward-looking work.

Kaur explained that AI can provide significant productivity benefits by enabling banks to do more with existing resources. “The real benefit is performance leverage—allowing us to grow the top line without increasing headcount at the same rate,” she said. This decoupling of revenue growth from staff expansion, she added, will be a key advantage over the next five years.

Despite the potential of AI, Kaur emphasised that human oversight remains essential in the highly regulated banking sector. AI, she said, is best used to make day-to-day work easier and to free up time for more rewarding tasks.

The integration of AI also brings challenges, particularly in reskilling and redefining jobs. Kaur highlighted that organisations must prepare employees to work alongside AI effectively. On a personal level, she uses AI for routine tasks and believes there is still a long way to go with generative AI.

Overall, Kaur sees AI as a tool to enhance human performance, improve efficiency, and allow banks to focus on growth and innovation while maintaining essential human judgment.

Below is the excerpt of the interview.

Q: How do you see AI changing the very nature of banking? What will HSBC look like five years from now because of AI?

Kaur: With AI, you need to focus on areas where scale gives you productivity benefits. But as a highly regulated industry, there will always be a human in the loop. I see AI as a tool for scalable deployments that make day-to-day work easier for colleagues. The purpose is to free up their time for more rewarding work. As we grow, AI gives us operating leverage—allowing us to grow the top line without increasing headcount at the same rate. That’s the real benefit: performance leverage.

Q: This decoupling between revenue and headcount—what are we talking about, realistically, over five years?

Kaur: I see it as using existing resources to do more, rather than needing to scale resources at the same pace as business growth.

Q: A recent cover story spoke of the existential problem facing consulting firms because of AI. Do you see this as a challenge or an opportunity for banks?

Kaur: I see it as an opportunity. If I spend all my time on tasks AI could handle—like reviewing policy documents or routine processes—then I’m not using my most valuable resource, my time, productively. Instead, I should focus on looking forward and preparing the organisation for the future. You’re right—whether in consulting or coding, AI is already replacing tasks humans did. That creates a social challenge: reskilling and redefining jobs. But ultimately, AI is a tool for humans; it doesn’t replace humans.

Q: How much of it do you use yourself?

Kaur: Personally, I use AI for routine tasks. And on generative AI—while most of us are familiar with AI—there’s still a long way to go.

Q: Speaking about driving good performance, you’re here in India with the rest of HSBC’s global board. You’ve had meetings with government ministers, including the finance minister and the commerce minister. What is your read on what’s happening in India today? The macroeconomic indicators are stable, though the geopolitical mix is uncertain. What’s your assessment of India?

Kaur: India is a very important part of our franchise. Right from when the first ATM came to India in 1987—it was an HSBC ATM. Today, India has the largest number of our colleagues: 45,500 people. We are deeply embedded here. I have my roots here, and I feel proud of how India’s economy has progressed—the fiscal discipline, stability, and the investment environment. The resilience of the economy is a huge factor for global investors. Given the demographics, youth, and enthusiasm, the energy in the country speaks for itself.

Q: What will this mean for HSBC’s priorities in India? With 45,000 employees here, India is among your top five markets. What would you prioritise?

Kaur: India is a priority market for us. Our strategy focuses on areas where we have a competitive advantage—international connectivity and wealth. I genuinely believe that GIFT City is a very big opportunity, both for India and for us.

Q: So, amplifying your presence in GIFT City?

Kaur: Yes, investing in GIFT City, doing multi-product offerings, focusing on wealth growth there, and supporting our corporate clients with the opportunities it brings.

Q: Corporate clients are a big part of your business. What’s your sense of inbound and outbound FDI from India, especially with M&A activity picking up?

Kaur: India is a vibrant economy with strong drivers, both in management and demographics. So FDI will continue to flow in. Outbound diversification will also continue. India is on target to become the third-largest economy by 2027. Compared to when I was growing up, India is far more connected globally. The macro fundamentals and forward outlook make India an optimistic space for both investment and growth.

Watch the video for the full interview