TL;DR

HSBC has partnered with French AI start-up Mistral to develop generative AI models for use across the bank. Employees will use the technology for financial analysis, translation, and document processing, with plans to expand into client onboarding and anti-money laundering checks.

Banking Embraces European AI

HSBC, Europe’s largest lender, has signed a deal with Mistral to access the French start-up’s AI models as banks accelerate their adoption of generative AI. The partnership reflects a broader industry effort to weave new technologies into operations, with banks hoping to improve employee productivity and reduce costs.

Under the arrangement, HSBC employees will use Mistral’s models for tasks ranging from financial analysis to translation. The technology will enable staff to process complex documents in multiple languages and make financing decisions more quickly. The partnership is expected to expand into other areas, including client onboarding and anti-money laundering compliance checks.

Part of a Broader Banking AI Wave

The deal follows similar moves across the financial sector. JPMorgan Chase has given employees access to LLM Suite, its own version of ChatGPT, in one of Wall Street’s biggest AI deployments. The bank has even offered staff the option to use AI to help write performance reviews.

Banks have positioned AI adoption as a way to improve efficiency and free employees for more complex tasks. However, the costs of deploying such tools are expected to be offset through reduced headcount.

Mistral, valued at nearly €12bn in its latest funding round, is regarded as Europe’s best hope for competing with larger US rivals such as OpenAI. The two-year-old Paris-based company has already secured contracts with BNP Paribas, Stellantis, and AXA.

Looking Forward

The rollout of AI tools in banking requires careful management to avoid risks to accuracy, data security, and reputation. UK lender Virgin Money apologised this year after its AI-powered chatbot reprimanded a customer who used the word “virgin.”

HSBC CEO Georges Elhedery emphasised the bank’s commitment to “responsible use of AI,” pledging to ensure all deployments meet “the highest standards of AI transparency, data privacy, and technology development.” The partnership signals growing confidence in European AI providers for enterprise-critical applications.

Source: Financial Times