AI BANKING
Banking is quietly entering its Gen AI phase
HSBC has partnered with French AI start-up Mistral to use its artificial intelligence models, as major banks continue to adopt AI to improve productivity and reduce costs.
The two companies will jointly develop generative AI tools for use across the bank.
The systems will support tasks such as financial analysis, document review and translation.
Financial details of the deal were not shared.
The partnership reflects a wider shift across the banking sector, where AI tools are increasingly being embedded into everyday operations, even in traditionally cautious institutions.
Bank meets bot
Other large banks are also moving in this direction. JPMorgan Chase has rolled out an internal AI tool that helps employees draft performance reviews.
The system is similar to ChatGPT, developed by OpenAI.
Banks say AI is meant to help staff work more efficiently and focus on more complex tasks.
However, the cost of implementing these systems is widely expected to be balanced by lower staffing levels.
HSBC said the tools will help employees process large volumes of documents in different languages and speed up financing decisions.
The partnership could also expand into customer onboarding and anti-money laundering checks.
The bank already uses AI across its business and wealth divisions to support customer services.
Mistral is valued at nearly €12bn and is seen as Europe’s strongest challenger to large US AI firms.
In brief:
HSBC is rolling out Mistral’s AI across internal banking tasks.
Major banks are now embedding AI into day-to-day work.
Accuracy, privacy and reputation remain key risks.
The Paris-based company has signed contracts worth hundreds of millions of dollars with clients including BNP Paribas, Stellantis and AXA.
The growing use of AI in banking also brings risks around accuracy, data protection and reputation.
Earlier this year, Virgin Money apologised after its chatbot incorrectly reprimanded a customer.
HSBC chief executive Georges Elhedery said the bank and Mistral are committed to responsible AI use, with a focus on transparency, data privacy and secure development.
Now even AI can tell me to stop buying avocado toast and oat lattes. - MV