HSBC partners with Google Cloud to expand AI usage

HSBC on Wednesday announced a multi-year partnership with Alphabet Inc-owned Google Cloud focused on building the British ​bank's artificial intelligence capabilities.

HSBC's partnership with Google Cloud is a multi-year agreement focused on building the bank's artificial intelligence capabilities. The deal involves the use of Google Cloud's infrastructure and AI technologies, such as machine learning and data analytics. HSBC will leverage Google Cloud's expertise to enhance its customer service, risk management, and operational efficiency. The partnership is part of HSBC's broader strategy to invest $17.2 billion in technology over the next five years.

This partnership will directly affect customers who use HSBC's online banking services, as the bank plans to use AI to improve its customer service chatbots and provide more personalized recommendations. For instance, HSBC's chatbots will be able to respond more accurately to customer inquiries, reducing the need for human intervention. This will result in faster response times and more efficient issue resolution. As a result, customers can expect a more seamless and intuitive online banking experience.

The partnership between HSBC and Google Cloud is part of a larger trend of banks partnering with technology companies to enhance their AI capabilities. In recent years, several major banks have formed similar partnerships, including Goldman Sachs with Amazon Web Services and JPMorgan Chase with Microsoft. Insiders know that these partnerships are driven by the need for banks to stay competitive in a rapidly changing financial landscape, where AI and machine learning are becoming increasingly important. Historically, banks have been slow to adopt new technologies, but the COVID-19 pandemic has accelerated the need for digital transformation.

In the coming weeks, HSBC is expected to announce the launch of its new AI-powered customer service platform, which will be built on Google Cloud's infrastructure. The platform is scheduled to go live in the fourth quarter of this year, with a phased rollout planned for early 2024. One surprising detail is that HSBC's partnership with Google Cloud also involves the use of Google's Anthos platform, which will enable the bank to run its AI workloads on-premises, in the cloud, and at the edge, providing greater flexibility and control over its AI infrastructure.