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HSBC is considering cutting up to 20,000 jobs, about 10% of its workforce, over the next 3-5 years as it integrates AI to automate middle- and back-office roles. The proposed downsizing, still under review, highlights AI's potential impact on employment in the banking sector.[AI generated]
Why's our monitor labelling this an incident or hazard?
The involvement of AI in the workforce reduction plan is explicit, as the job cuts are linked to an AI overhaul. The harm here is indirect, relating to potential job losses affecting employees, which constitutes harm to people (economic and employment harm). Although the plan is at an early stage and the cuts are not yet realized, the credible risk of significant job losses due to AI adoption qualifies this as an AI Hazard rather than an Incident, since the harm is plausible but not yet materialized.[AI generated]