HSBC plans to establish an artificial intelligence and emerging technology institute in Hong Kong in the first quarter of 2027, expanding its investment in AI research and development following the launch of its AI centre in Singapore.
The announcement was made by HSBC Chief Executive Georges Elhedery on November 2, 2026. The Hong Kong University of Science and Technology (HKUST) will serve as the institute’s anchor academic partner.
The institute will focus on developing technologies that can be applied across the bank’s operations. Its initial areas of work include AI skills development, AI security, fraud detection, engineering optimisation, post-quantum cryptography and blockchain.
HSBC intends to establish the institute in the Northern Metropolis, a major development area close to mainland China, once the site is ready. The bank has not disclosed staffing details for the proposed centre.
The move follows HSBC’s earlier expansion of its AI capabilities in Singapore. In July, the bank announced plans to hire more than 100 AI specialists in the city-state.
HSBC is also providing AI training to its global workforce of approximately 200,000 employees, including around 28,000 staff members in Hong Kong. The initiative comes as financial institutions increasingly adopt AI tools across business operations and customer services.
The development also reflects wider efforts by Hong Kong’s financial sector to expand AI adoption while addressing associated risks.
Hong Kong Monetary Authority Chief Executive Eddie Yue said approximately 80% of banks in the city were already using AI or generative AI.
The monetary authority is also preparing Project SAGE, an initiative intended to support the adoption of AI agents in the financial sector while addressing risks associated with their use. The work will include expert testing and the development of approaches covering governance, accountability and trusted-agent standards.
The HKMA is also planning to expand trials involving tokenised Exchange Fund Bills and assess the use of regulated stablecoins for payments.
HSBC’s proposed Hong Kong institute will bring together research capabilities and technology teams to develop solutions for the bank’s operations, as financial institutions continue to explore ways to apply emerging technologies across their businesses.
