AI-Powered Career Coaching Gains Traction, but Faces Hurdles
Coaching programs that leverage artificial intelligence (AI) are becoming increasingly popular as a more affordable and accessible alternative to traditional human coaching. These AI-powered platforms provide real-time, interactive feedback on various career challenges, from negotiating a raise to navigating job searches.
The emergence of AI coaching comes at a time when more companies and individuals are seeking career development support. In a survey, 47% of companies said they are investing in career mentoring and coaching, while 42% of employees reported being comfortable seeking advice from an AI coach.
Startups and established companies alike are rolling out new AI coaching products. For example, Menlo Park-based Rising Team added an AI leadership coach to its platform, and Wisq, a management AI coaching tool, launched a program for mid-level managers. Multiverse, an apprenticeship startup, reports that 64% of its customers now use its AI career coach.
However, AI coaching faces hurdles to widespread adoption. Some workers may be hesitant to share personal information with an employer-provided tool, and there are concerns about the quality of AI-generated responses compared to human coaching. Research suggests AI coaching can be as effective as human coaching in some scenarios, but skepticism remains.
The cost-effectiveness of AI coaching is a key driver of its appeal. Traditional human coaching can cost $244 per hour on average, while AI-powered options range from $50 to $150 per user per year. This makes coaching more accessible to a wider range of employees, not just top performers or senior executives.
Despite the potential benefits, AI coaching still has room for improvement. Experts note that AI tools struggle with the nuanced, relationship-focused aspects of coaching, and can sometimes provide confusing or irrelevant advice. To overcome these challenges, AI coaching providers need to collect more personalized data from users while addressing privacy concerns.
Interestingly, some unexpected demographics, such as middle-aged men, have emerged as power users of AI coaching. These groups may find the non-judgmental, mathematical approach of AI tools more appealing than traditional coaching.
As AI technology continues to advance, the adoption of AI-powered career coaching is likely to grow. However, the human touch and personalized approach of traditional coaching will likely remain an important complement to the AI-driven offerings.