HSBC to set up an AI and emerging technologies institute in Hong Kong

Following the creation of a similar center in Singapore, HSBC is preparing to open an institute for artificial intelligence and emerging technologies in Hong Kong. With this move, the bank intends to expand its technological capabilities in Asia and accelerate the use of AI in the financial sector.

HSBC Chief Executive Georges Elhedery said at Fintech Week in Hong Kong that the institute is expected to begin operating in the first quarter of 2027. The main academic partner will be the Hong Kong University of Science and Technology. Elhedery did not disclose how many staff will work on the project.

He also said the bank plans to move to the Northern Metropolis, an area on Hong Kong’s border with China that is envisioned as a major development project, and that it is waiting for suitable premises to be ready.

HSBC’s Hong Kong plan follows the bank’s announcement in July that it would set up an AI center in Singapore and hire more than 100 specialists there.

The bank is not limiting its investment to technology infrastructure. HSBC has about 28,000 employees in Hong Kong and nearly 200,000 worldwide. According to Elhedery, the bank is running an AI training program for its entire global workforce.

He also addressed AI’s impact on the labor market: “AI will be disruptive. It will change jobs.”

This is already visible in the banking sector. International financial institutions such as Citi, Standard Chartered and Barclays have planned to cut thousands of jobs amid AI and other technological changes. Eddie Yue, head of the Hong Kong Monetary Authority (HKMA), said that about 80% of the city’s banks already use AI or generative AI technologies.

The HKMA will launch a project called SAGE to expand the use of AI agents in the financial sector while keeping potential risks under control. According to Yue, the project will test how AI agents are used and interact across different applications. A special panel of experts from various fields will be set up for this purpose.

The regulator will also consider proposals on the governance of AI agents, the allocation of responsibility, the creation of a central registry of trusted agents and a possible “know your agent” standard. Yue stressed the importance of managing risks in parallel with innovation.

In addition, the HKMA plans to expand trials of tokenized Exchange Fund Bills and to explore the use of regulated stablecoins as a means of payment.

HSBC’s new institute and the HKMA’s initiatives are part of efforts to broaden the adoption of AI in Hong Kong’s financial sector, accelerate technological innovation and strengthen the institutional framework for managing risks in this area.