Standard Chartered is undertaking sweeping job cuts as it increases its focus on AI.
The global bank announced a growth plan Tuesday (May 19) that included plans for a “reduction in corporate functions roles” of more than 15%.
Standard Chartered’s most recent annual report showed it employing a little more than 52,000 people in support services, putting the cuts at around 8,000 workers. CEO Bill Winters discussed the company’s plans in greater detail during a briefing in Hong Kong.
“It’s not cost cutting; it’s replacing in some cases lower-value human capital with the financial capital and the investment capital we’re putting in,” Winters said, per multiple published reports.
The bank will have “job role reductions in favor of the machines, and that will accelerate as we go forward into AI,” the CEO added.
According to the plan released Tuesday, the bank says its next stage of growth would be “supported by a simpler, faster and more connected operating model.”
Advertisement: Scroll to Continue
Beyond the job cuts, Standard Chartered said it is “scaling practical uses of automation, advanced analytics and artificial intelligence to streamline processes, improve decision‑making and enhance both client service and internal efficiency.”
Research by PYMNTS Intelligence offers a glimpse into banking’s ongoing embrace of artificial intelligence, where, for example, 73% of top-performing credit unions are working on new payment features with external partners.
“Financial firms are not just experimenting with AI; they’re operationalizing it at scale, and in the least visible parts of the enterprise, including the core systems that determine how work gets done,” PYMNTS wrote last week.
Additional research has spotlighted an inflection point around the move from isolated use cases to integrated systems. Financial institutions are not adopting AI more broadly but more deeply, with an emphasis on back-office functions such as compliance, underwriting, fraud detection and operational workflows.
“In that sense, the AI race is no longer just about technology. It is increasingly about execution, integration and the ability to turn potential into performance,” the report added.
“The practical challenge is not simply technical integration. Banks must determine whether external AI systems can operate inside environments governed by audit requirements, cybersecurity controls, model-risk standards and supervisory review.”
The issue is catching the notice of regulators. For example, Federal Reserve Vice Chair for Supervision Michelle Bowman warned earlier this month that AI capabilities are progressing quickly enough to warrant updated supervisory approaches.