Rise of AI career coaches ushers in new age of employee development

As organizations invest heavily in employee development — with U.S. companies laying out some $1,500 per employee on training in 2024 — a new trend is emerging: AI-powered career coaches.

These digital mentors are helping employees navigate career advancement, compensation discussions and professional development with unprecedented precision and accessibility, according to workplace experts.

In a study of 3,300 workers, training platform Multiverse found that its AI guide Atlas was sent some 8,000 messages focused on calculating and communicating their value at work. Atlas helps employees understand key metrics, collect relevant data, calculate impact and communicate their contributions —seen as essential elements for discussions around career advancement.

Oracle’s launch this week of AI agents within its cloud-based HCM platform represents one of the most comprehensive implementations of AI coaching technology yet. The new role-based AI agents focus on three key areas: career and performance development, compensation and benefits management and employee lifecycle management.

Chris Leone, Oracle’s executive VP of applications development, pointed out that the platform’s career-planning guide creates actionable progression plans based on employee profiles and suggests roadmaps to achieve career goals. Meanwhile, its performance assistant helps employees improve goal writing and develop plans to meet objectives before reviews, while a learning advisor recommends specific training opportunities based on individual training history and career objectives.

“AI coaches can help improve confidence, communication skills and technological expertise, leading to better team relationships and a more agile workforce.”

Leena Rinne

VP of coaching, Skillsoft

The system provides employees with support for everything from automated timecard submissions to tax withholding guidance. It also features a job seeker analyst tool providing resume tips, interview coaching and job search strategies to support internal mobility.

Kelly Jones, chief people officer at Cisco, emphasizes how AI coaches are transforming leadership development as well. “AI coaches can offer tailored coaching to leaders based on in-depth knowledge of the organization,” she said. “Their advice can be aligned with the company’s culture, mission and values, and offer coaching based on the individual’s personality and preferred learning style.”

The democratization of career development is a key benefit of AI coaching, experts say. Stefano Grossi, chief product and technology officer of accounting services platform FreshBooks, highlights how AI is leveling the playing field. “Until now, the outspoken and extrovert had the upper hand, but this is changing. Imagine an incredibly strong immigrant, not having to deal with language barriers, or introverts creating videos about their work without having to be on screen presenting,” he said.

“AI coaches can help improve confidence, communication skills and technological expertise, leading to better team relationships and a more agile workforce,” said Leena Rinne, VP of coaching at workforce support platform Skillsoft, where 95% of customers have activated its AI coaching tool CAISY.

“When used thoughtfully, AI coaching can offer consistent guidance and skill-building opportunities that help employees reach their full potential.”

Suzy ElFishawy

VP of engineering, The Predictive Index

Experts stress the importance of thoughtful implementation, however. Suzy ElFishawy, VP of engineering at The Predictive Index, a talent optimization platform, cautions that “for AI coaching to succeed, three elements matter: ethical guidelines to ensure responsible use, thoughtful integration that keeps human coaching front and center, and AI literacy so employees understand both its strengths and limitations.”

The balance between AI and human interaction is key. Multiverse maintains strict guardrails for its AI coach, encouraging critical thinking about outputs and ensuring professional, contextually appropriate responses. On sensitive topics, the AI coach will suggest transitioning to a human coach.

The impact varies across age groups. Multiverse reports 300% growth in daily active users of its AI coach in the past six months, with particularly strong engagement among millennials seeking to overcome career plateaus.

Looking ahead, organizations are exploring even more sophisticated applications. Cisco’s Jones envisions AI coaches providing customized benefit plans, flagging employee engagement issues and promoting peer recognition — suggesting that AI coaching could become a more integral part of professional development strategies.

“When used thoughtfully, AI coaching can offer consistent guidance and skill-building opportunities that help employees reach their full potential,” ElFishawy said. “At its best, it empowers managers to have richer, more meaningful development conversations rather than automate decision-making.”