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How AI Coaching Is Redefining Leadership Development · C-Suite Perspectives

• 0:00
  Welcome to C-Suite Perspectives, a signature series by The Conference Board.
• 0:04
  I'm Diana Scott, Center Leader of the US Human Capital Center at The Conference
• 0:09
  Board, and the guest host of this podcast.
• 0:12
  Today we'll discuss how AI coaching is transforming leadership and the
• 0:16
  future of workforce development.
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  Joining me is Allan Schweyer, Principal Researcher, Human Capital Center.
• 0:23
  Welcome, Allan.
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  Allan, your report suggests AI coaches could soon deliver
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  90% of workplace coaching.
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  That's a pretty aggressive figure.
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  What does that imply for the future architecture of talent development
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  inside large organizations?
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  It means that potentially the benefits of coaching, which you know, is one of
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  the most effective development tools available in the workplace, could be
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  made available to every worker and every manager for about 90% of their everyday
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  coaching needs according to our research.
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  But that doesn't mean that human coaches go away.
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  AI handles routine coaching, like goal tracking, feedback, rehearsal,
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  meeting preparation, nudges, after-action learning, and so on.
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  While human coaches then focus mostly on senior executives, like
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  they always have, where the decision stakes are high and to help navigate
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  complex relationships and so on.
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  You, you think about the kinds of organizations that are doing this.
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  90% is a pretty high figure.
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  You do highlight some examples of companies that are piloting
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  AI coaches enterprise wide.
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  What separates those organizations that can scale successfully from those that
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  actually get stuck in the pilot phase?
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  First, to do this right, you should test multiple solutions
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  with dozens of end users-- workers, and managers-- ideally in pilots.
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  Then these workers and managers should report back on things like ease of
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  use, accuracy of the information the AI coach delivers, and obviously
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  applicability to their work.
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  Leaders should choose a solution that embeds in the flow of work.
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  And by that I mean it should be able to integrate with email, with any
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  collaboration tools like Teams or Slack that the organization uses, even
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  HRIS and other systems, so that the AI can draw from those sources and
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  also engage with the worker within the systems that they use every day.
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  That's really important.
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  Another thing is that organizations should also establish some
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  cross-functional governance, involving HR, technology leaders, legal, obviously
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  procurement professionals and so on, to develop standards, especially
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  around data security and privacy.
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  Because nothing will shut this down faster if people don't trust it.
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  So select a supplier that can clearly meet your criteria around privacy.
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  And then monitor too.
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  You can't just implement it and leave it.
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  You have to look at issues like language glitches when it speaks
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  to people in different languages.
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  There are sometimes issues, hallucinations, which we
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  see with AI in general.
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  And then having escalation procedures where a person being coached with
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  AI might cross the line in terms of what they discuss with it.
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  So how do you deal with things like that?
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  It's complicated, like everything else we do.
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  Right, Diana?
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  It's not as easy as it looks.
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  Yeah.
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  You bring up a really important point.
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  Individuals in an organization, you talked about how they
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  have to actually trust this.
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  Is that something in your research that you were able to dive into?
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  How do you get individuals to actually trust this system and how do you get
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  them to trust that this system is not going to reveal their deep, dark secrets?
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  Yeah, it's a real challenge because the more you use AI coaching, the more people
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  who are using it in the organization, the more valuable the data and content
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  they create becomes to the organization.
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  And yet you cannot violate the individual conversation with the AI coach.
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  All that information has to be held and used in the aggregate.
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  To do that, first, use things like your business resource groups or
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  your employee resource groups to ensure that you have some inclusive
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  adoption so that everyone has an opportunity to use this if they want to.
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  And then focus on establishing and keeping trust by giving opt-in controls.
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  If you're going to link the AI to a person's calendar or email, ask their
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  permission first and honor their preferences if they don't want that done.
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  Also, of course, only use the data in the aggregate.
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  Most of the suppliers that we spoke to, Diana, they do this for you.
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  They keep the data at their end and they do not give the organization any access
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  to individual coaching conversations.
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  I assume when you're communicating that becomes a very important thing
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  that you communicate to the users.
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  The fact that it is not housed in the company, it's actually
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  housed with the outside provider.
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  That must give a sense of comfort to the actual user.
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  So that probably builds trust.
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  It sounds like to be successful in implementing this system,
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  you're talking about making this coaching part of daily work.
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  Typically, when somebody is being coached, it can't all be on the individual.
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  You've gotta provide some sort of nudges.
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  You've gotta give direction before, during, and after coaching.
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  How does that work when the coach is not a person?
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  Talk a little bit about that.
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  Yeah, for sure.
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  It's a machine.
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  We've gotta keep remembering that the AI coach is not a person.
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  But it feels like a person, right?
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  I mean, I've heard it actually feels like a person.
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  Feels like a person and over 90% of participants in our experiments said
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  that it really does a good job with empathy and showing understanding.
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  So it draws people in.
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  They start talking to it, they share things with it that they
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  might not even share with a trusted friend because they might be
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  embarrassed to say certain things.
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  There's an AI coach and you should try to keep remembering
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  that it isn't a real person.
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  But one of the real potentially transformative benefits of AI coaching
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  is that it can be embedded, as you say, in the flow of their work.
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  But that means it's kind of always looking over your shoulder.
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  If it's turned on and you're doing your email or you are just having a
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  conversation on Teams, it's observing both ends of the conversation, by the way.
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  And it might offer you a suggestion, might remind you that this person reacts better
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  to this type of an approach and that type.
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  It might do that in real time in some cases.
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  That can be annoying to some people and extremely helpful to other people.
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  So again, it comes back to the opt-in.
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  If I feel that's helpful to me, then I want to turn it on.
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  I think leaders should encourage that, though.
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  Not enforce it, but encourage it so that they do get used to the AI.
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  If you think about the AI is maybe not a person but someone who is a discreet
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  colleague that really only cares about your success, then all of us could
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  benefit from that sort of teammate.
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  We just have to get used to it being over our shoulder and offering us advice
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  without us soliciting that advice.
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  Yeah.
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  So now I'm sitting in my seat as a chief human resources officer (CHRO).
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  What kind of cultural levers do you think a CHRO can really use
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  to make this AI coaching stick?
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  Because you're talking about piloting it and having to then
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  embed it into the culture.
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  What makes it go beyond just being a tool and actually becoming a habit?
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  Well, I think it's some of the things we talked about before.
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  You mentioned good communication, ensuring that everyone knows the
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  conversations that they are having with their AI coach are confidential,
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  giving them that ability to opt in.
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  That's the table stakes, right?
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  You have to start there.
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  And then you need to really be good about selecting a solution that is
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  user friendly, that does embed, that isn't overly over your shoulder.
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  It doesn't need to be telling you what you're doing wrong every five minutes.
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  It needs to have judgment in a lot of ways, artificial judgment, so
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  that people appreciate nine out of 10 of the nudges they receive.
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  Let's say if that's your bar, that they see the benefit of being
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  told about their blind spots.
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  We have a really good case study that talks about a person who was
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  ready to demote an individual that had only promoted a few months before
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  because that person was not showing the type of initiative and risk taking
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  that was required for the position.
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  But the AI, in looking through the past sessions, the one-on-ones that the two
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  had, looking back at the manager's own blind spots and that individual's cultural
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  differences, was able to show the manager that maybe their definition of taking
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  initiative was quite a bit different than the employees given their background.
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  I think a manager might appreciate that.
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  And when you can have those kinds of small wins, I think over time the CHRO's job in
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  convincing workers to adopt this and use it regularly will be solved in most cases.
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  Diana, just the last point there, we've seen organizations go from pilot and
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  then over the course of 90 to a 100 days, expand that to several thousand
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  employees and then over the course of a year to upwards of 100,000 employees.
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  Everyone has a access to it and is achieving use rates, which means not
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  using it once but coming back and using it again and again, of 75% to 80%.
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  That's amazing.
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  I want to go back to the point that you just made, when you talk about the leader
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  actually being coached, essentially, to think differently by the AI coach who's
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  been employed to coach the employee.
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  That signifies to me a mindset shift from the part of the leader
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  that is really significant.
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  So the coach is actually not only coaching the employee but perhaps
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  coaching the manager as well, which is a different way to think about this.
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  That is something that you might talk about a little bit because
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  I think that's significant.
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  That's different than how I think a lot of people view coaching.
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  They think it's all always just one way.
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  This is a two way coaching effort, right?
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  Yeah, absolutely.
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  We interviewed quite a few leaders in organizations who have begun
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  to implement or are in different stages of implementing AI coaching.
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  And one of the things that they talked about was that they said, especially when
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  they're bringing in a new manager, someone who's been an individual contributor,
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  making that very difficult transition for the first time to leading other people.
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  And how big a gap there often is in skill sets there.
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  And how an AI coach can really accelerate their ability to become an effective
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  manager quickly and maybe not have to go through all of that pain, making
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  mistakes, and so on, to become the type of manager who is better at coaching others.
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  So, absolutely.
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  I think one of the benefits of AI coaching is that it can coach the coach.
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  We have a big section of the paper, by the way, around that.
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  How does AI help human coaches, whether they are manager coaches or
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  professional certified executive coaches?
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  And there's a great deal of potential there for an AI coach
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  to be a coach's assistant.
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  Yeah, and I think what you're saying, there is really AI coaching
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  reshaping the whole psychological contract between employer, employee.
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  It really is reshaping how we think about growth, perhaps privacy and trust as well.
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  And I don't know if you have some comments about that, but this is big.
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  Yeah.
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  In the paper we say it's potentially transformative and that word's
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  thrown around a little bit.
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  But I think in this case it's likely true.
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  It's too early to say but if you think about what AI coaching can do, we've
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  talked about it performing 90% of routine coaching for every worker, for
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  every manager across the organization.
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  We've talked about it helping managers become better coaches.
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  We've talked about helping professional certified executive
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  coaches become better coaches.
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  What we haven't talked about very much is how, in the aggregate, it can give
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  a CHRO access to an unprecedented level of real-time workforce intelligence
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  insights that come from hundreds and then thousands of coaching sessions.
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  And imagine that we work with engagement surveys.
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  We do them once a year, twice a year, and so on.
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  We scour the results and try to make some changes.
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  And that's self-reported data.
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  This is actual data, real conversations coming constantly, every day across
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  hundreds of conversations that a CHRO can act on in the aggregate again,
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  to see patterns and insights that can help them improve the culture.
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  So I do, I agree.
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  I think this is a big deal and is potentially
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  transformative for organizations.
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  Thank you.
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  We're going to take a short break now and we'll be right back with more of
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  my conversation with Allan Schweyer.
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  Welcome back to C-Suite Perspectives.
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  I'm your host, Diana Scott, Center Leader of the US Human Capital
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  Center at The Conference Board.
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  I'm joined by Allan Schweyer, Principal Researcher from the Human Capital Center.
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  Allan, we were talking right now about the transformative nature of this AI coaching
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  tool and we were beginning to delve into the kind of access to information that
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  CHROs might have by using this tool.
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  Let's talk a little bit more about that.
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  I want to dive into that.
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  For CHROs presenting to boards or talking to their chief financial officers (CFOs),
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  what do you think the most persuasive way to frame the return on investment (ROI)
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  or the strategic value of AI coaching?
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  Suppose you have a budget of, let's just say, $1 million per coaching.
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  And with that $1 million, you can have so many hours of very expensive
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  human coaching, $400 or $500 an hour or more, for your executives and
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  you generally exhaust your budget in most years by providing human
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  executive coaches to your leaders.
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  And then you expect your managers to act as coaches as well.
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  Maybe even in some organizations you talk about peer coaching and you provide
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  some learning and training around that.
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  But you know, people are limited.
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  They have limited time.
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  Of course, managers have a greater span of control than they've ever had.
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  We know.
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  And it adds up in terms of the cost of time.
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  If you take that $1 million budget, maybe you carve out a little piece to
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  license, or I don't, I'm not gonna say a little piece, but a much less expensive
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  piece, to license a secure and private AI coaching platform that gives AI coaching
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  to everyone, then you could expect pretty hefty, I think, impact on ROI.
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  Because, again, we know effective coaching is one of the best developmental tools.
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  We also know from our research, and I mentioned this earlier, that
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  people find that it provides concrete advice, next steps, is empathetic,
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  is understanding, and so on.
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  So if you help your workforce, whether that's 5,000 or 100,000 people or
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  whatever number it is, become better at conversations and better at
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  understanding the people they work with.
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  One of our CEOs put it well.
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  He said, "You can raise the collective emotional intelligence, the EQ of
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  the organization, by 10 points," something the CEO said he'd been
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  looking to do for years and years and was able to do with AI coaching.
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  So then you can imagine an organization that just functions:
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  better well-being, better collaboration, less negative conflict.
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  No, you don't want everyone agreeing with each other, but positive conflict
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  because people are being coached on how to work with each other more effectively.
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  That is one side, so you expand it to your whole workforce.
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  It takes care of, like we say, about 90% of the routine coaching at a
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  price that's far less than what you would pay for human coaching.
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  This reserves human coaching, again, for the big decisions, the decisions
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  that executives tend to make for emotionally fraught conversations
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  where values and ethics might come in or complex relationships.
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  So you're actually focusing that human coaching better than you were in the past.
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  So there's ROI in that, and then of course there's large potential ROI in
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  the collective insights you receive from having AI coaching across the enterprise.
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  Can you talk a little bit more about that?
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  You started to talk about that before our break.
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  There is real insight that comes from that.
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  Describe a little bit about what that might be and how that might be helpful
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  to executives across the company, to the CHRO, or even to a board in terms of
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  understanding a little bit more about the ethos and the culture of the organization.
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  Yeah.
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  It's always good to start this with emphasis on privacy and never looking
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  into people's AI, coaching conversations.
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  People have to be a 100% certain you're not going to do that or
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  they're just not going to use it.
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  So once you've solved that, you've earned the trust, you've kept the trust, then
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  you should look at the aggregate data.
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  Your supplier, if you're using an external AI coaching
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  provider, can help you with that.
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  You can use it to look at patterns as they're developing.
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  So this could be employee sentiment, it could be like an engagement survey.
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  You're using it to understand how your employees are feeling, what
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  kinds of tasks they're asking their AI coach to help them with, which
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  can inform learning and development.
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  As you go a little bit more granular, you might learn about issues within divisions.
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  Gets a little more dangerous when you look down to the team level because
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  you're getting closer to the individual.
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  But you might look at issues that could be arising, emergent issues
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  that you could resolve more quickly if you understand what's happening.
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  These are all cultural things.
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  Insights that you get from conversations that people have with their AI coaches
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  in the aggregate really can affect every aspect of human capital management.
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  If you think about it, it can give you insights into the emerging skills.
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  There are some organizations that are using it to build skills,
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  to help build skills taxonomies as they become skills-based
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  or skills-first organizations.
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  They're extracting that type of intelligence, definitely helping with
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  more precise learning and development, how to keep employees engaged.
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  You could also infer skills and interest to think about how you might optimally
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  deploy people and teams with this data.
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  It can be used in workforce planning.
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  The uses we're still discovering.
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  In the paper we have some vignettes that we've taken out
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  from talking to organizations.
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  You'll see in the paper uses in recruiting, uses in inclusion
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  and belonging, use cases also for workforce planning, and, by
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  the way, health and well-being.
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  It sounds like there's a treasure trove of data and information and
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  learning that can come out of this.
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  You alluded to this.
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  Obviously, as you begin to analyze communication and behavior patterns
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  and everything, you begin to delve into some potentially dangerous areas.
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  So talk a little bit about some of the ethical guardrails that you
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  might need to put in place before you think about full-scale deployment.
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  What are some of the things that companies are doing just to make sure that they're
• 20:20
  guarding against crossing any lines?
• 20:23
  Yeah.
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  We haven't talked about the difference between generic
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  large generative AI models.
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  Your ChatGPTs and Copilots and Geminis.
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  These are where most organizations tend to start.
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  You have a curious human resources leader who says, "I'm going to try this
• 20:43
  for my own career development," or, "I'm going to do something over here
• 20:46
  with an AI coach." And then they're intrigued and maybe they're the catalyst
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  for something like a formal pilot.
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  The thing about the solutions that are the generic, ChatGPT and so
• 20:56
  on, is they are owned or licensed.
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  There is a version of that on your servers in your organization.
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  You cannot say in those circumstances that the organization could not access
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  individual conversations because they can.
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  You could guarantee that they won't but it's a little harder because you can't
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  say that they can't, if you follow.
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  The solutions that are purpose built for AI coaching, and some of the
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  ones that we tested, are the ones who will put that firewall between the
• 21:27
  organization and individual conversations.
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  So that could be an important part of it.
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  You want to adopt a privacy-by-design solution, whatever it is.
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  That means encryption of these conversations.
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  Retention because when you retain coaching conversations over time,
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  the data's bigger and better.
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  You've got historical conversations to look back at and to synthesize
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  with current conversations.
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  You don't want to necessarily delete them but you do have to have some
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  standards around how long you're going to retain a coaching conversation.
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  Obviously aggregate only reporting.
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  Keeping a human in the loop for sensitive topics, to intervene when
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  necessary, to be like an ombudsman.
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  If someone has a question or a challenge to what's going on in the organization.
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  You should be, as I mentioned, aligning.
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  It's usually driven by the chief human resource officer or a senior leader in
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  that group, but bring legal in early on.
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  Bring communications in early on.
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  Leverage your employee resource groups.
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  And, I mentioned, don't make employees use it.
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  Don't tell employees that you're going to integrate it with
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  their calendar and their emails.
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  Ask for permission, offer opt-in for these types of things, and
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  then come up with a series of trust metrics so you can track how many
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  times are people challenging this?
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  What is your opt-in?
• 23:01
  That's a really good one, right?
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  Where if you've said you can opt-in to have the AI integrate with your
• 23:07
  calendar, email and other systems, what percentage of your workforce
• 23:11
  is saying, okay versus no, right?
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  Because that shows trust.
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  So have some metrics and track those and see how you're doing
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  so you have a trust barometer.
• 23:20
  Sounds really like great advice.
• 23:22
  From a global perspective, we know that there's some growing
• 23:25
  divergence between the EU's AI Act approach and, obviously, what's a
• 23:30
  little bit more flexible in the US.
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  How should organizations think about that when they're deploying
• 23:36
  AI and talent development?
• 23:39
  Yeah, I think this one's a simple one.
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  It sounds like it could get very complex if you try to overthink it.
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  There's also differences between states and the US as in terms
• 23:50
  of privacy rules and laws.
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  So I think the right thing to do for any organization is to look at everywhere
• 23:58
  that they operate, whether that's internationally or across different
• 24:02
  states in this country, and default to the strictest of those regimes.
• 24:07
  That's especially true for Europe because, as you mentioned, it's got some of the
• 24:11
  most protections for the individual.
• 24:14
  So just fall to the standards of the strictest regime and you should be okay.
• 24:19
  That makes sense.
• 24:20
  Final question for you, Allan.
• 24:22
  As you look about five years out, do you think AI is going to make leadership
• 24:26
  development more human or is it going to risk making it more mechanized?
• 24:32
  And does that give you optimism about where this is headed?
• 24:36
  Yeah, that's the question of the day.
• 24:38
  If you'd asked me that before we started this research, I would've said it'll
• 24:42
  become more automated and mechanized.
• 24:45
  But I think paradoxically, it'll make it more human if it's designed well.
• 24:50
  You know why?
• 24:51
  Because, first, the 90% of coaching that we're talking
• 24:54
  about is routine, everyday stuff.
• 24:57
  This leaves more time for human coaches to attend to the 10%, the coaching that deals
• 25:02
  with values, emotion, corporate politics, complex relationships with stakeholders
• 25:07
  inside and outside the organization.
• 25:09
  Those things that AI really cannot do.
• 25:12
  We haven't talked about that too much but there's a lot
• 25:14
  that AI coaching can't do yet.
• 25:17
  This could change in five years but we're talking about now.
• 25:21
  And I know we're talking about five years out but I'm going to say I still
• 25:24
  think it's going to be more human.
• 25:26
  When AI acts as a human coach's assistant, for example, it
• 25:30
  remembers prior conversations.
• 25:32
  It can help the human coach remember what you talked about three
• 25:36
  sessions ago and why that should be brought into the next conversation.
• 25:39
  It can do administrative things like that.
• 25:41
  And what happens when it takes those things off the human coach's plate?
• 25:45
  It frees a human coach to be more human, to focus on human issues
• 25:49
  rather than administrative issues.
• 25:51
  We talked about AI accompanying worker, being that teammate
• 25:54
  looking over their shoulder.
• 25:56
  If it can anticipate their needs like we've been talking about and help
• 26:00
  them strengthen their relationships with team members, that's gonna
• 26:04
  make the workplace a happier, more friendly and collaborative place.
• 26:10
  So I think more human.
• 26:11
  All bets off if we get some form of super intelligence in the next five years
• 26:15
  or something of that nature, then, you know, then I'll be wrong about this.
• 26:20
  I love your optimism, Allan, and I'll take that AI makes us more human.
• 26:27
  It's an augmentation tool.
• 26:28
  It makes us more human.
• 26:29
  I'll take it.
• 26:30
  And thank you for joining us today, Allan.
• 26:34
  Thank you.
• 26:34
  I appreciate it.
• 26:35
  And thanks to all of you for listening to C-Suite Perspectives.
• 26:39
  I'm Diana Scott, and the series has been brought to you by The Conference Board.