HSBC is preparing to cut hundreds of jobs from its UK wealth management operation as the bank accelerates its use of artificial intelligence to serve affluent customers with fewer human staff.

The proposed restructuring is being discussed with employees during a consultation process and could result in sweeping reductions across management, specialist and advisory roles, according to reports.

Around half of management and specialist positions in the wealth division are expected to be eliminated, while the number of financial advisers could fall by as much as 70 per cent, the Financial Times reported, citing a person familiar with the plans.

One source described the proposed changes as “deep, wide and brutal”, with almost entire teams potentially being made redundant.

The scale of the reductions underlines the increasingly disruptive effect of artificial intelligence on an industry that has traditionally relied heavily on highly paid professionals to manage relationships with wealthy customers.

HSBC has hundreds of relationship managers operating across the UK, with affected employees reportedly expected to leave the bank at the end of October.

The restructuring comes as Georges Elhedery, HSBC’s group chief executive, pushes a broader strategy of simplifying the bank and using technology to reduce the cost of serving customers.

The bank has been equipping relationship managers with AI tools designed to accelerate their work, including technology that provides market intelligence and personalised investment strategies.

In a blogpost published in July, Elhedery said the technology was helping relationship managers serve customers more quickly, reflecting the bank’s ambition to move more routine activity into digital channels.

The strategy represents a significant shift in the economics of wealth management. Rather than maintaining large teams of advisers and relationship managers for a broad customer base, banks are increasingly seeking to reserve human expertise for customers whose financial affairs require more complex or bespoke advice.

For HSBC, the change is also part of a much wider cost-reduction programme.

The bank has removed about $1.5bn (£1.13bn) of costs under Elhedery’s leadership, ahead of schedule, including through the elimination of duplicated senior management roles.

The wealth management restructuring suggests that artificial intelligence is now moving beyond experimental applications and into the core operating model of one of the world’s largest banks.

The immediate effect will be felt by employees facing redundancy, but the longer-term implications extend across the financial services industry. If AI can handle market research, customer preparation and increasingly sophisticated investment recommendations, banks may be able to support significantly larger customer bases with smaller teams.

That creates a difficult balance for HSBC. Wealthy customers typically pay for access to expertise and personal relationships, yet digital services offer banks the prospect of delivering parts of that service at substantially lower cost.

The bank has indicated that it intends to expand its range of digital products and services for wealth customers while retaining human advice for more complicated financial requirements.

An HSBC UK spokeswoman said: “HSBC UK is a long-established, leading UK wealth manager and premium banking provider.

“We’re continuing to evolve to deliver more digitally-enabled products and journeys, to support our best-in-class wealth service and meet the changing needs of our customers.”

The proposed cuts therefore represent more than another round of banking cost reductions. They offer an early indication of how AI could redraw the boundary between human expertise and automated financial services — and how quickly that shift could reshape the workforce of Britain’s banking industry.

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