Helping Employees Grow with AI-Powered Coaching

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Nicole Belyna: Wish you could do more to help every employee at your organization get the personalized training and career development they need without breaking your HR budget or burning out your team? As an HR pro, you know how challenging it is to support everyone's growth, especially when each person learns and develops in their own unique way.

Now, imagine if your employees and managers had a smart assistant at their fingertips helping them spot and plot out their career paths and find the right resources for the learning they need. That's the promise of AI coaching, giving workers the tools to make growth more personal, more impactful, and ideally a lot easier for everyone.

Welcome to Honest HR. I'm your host, Nicole Belyna. Let's get honest in connection with SHRM's new 2026 trends and priorities report. Today we'll be discussing what AI coaching can do to address employees' diverse needs, how it can fit into your current programs, and the practical steps to get started, no tech degree required.

Joining us today is Theresa Festenstein, an AI educator for HR teams and the founder of People Power AI. Welcome to Honest HR, Theresa.

Theresa Fesinstine: Thank you so much for having me, Nicole. I'm so pleased to be here and excited about this conversation.

Nicole Belyna: We're super excited to have you. So let's start with some recent SHRM research, if you don't mind, in which 66% of US workers said that they view the ability to collaborate with AI as a valuable skill for the future. So knowing how to work with an AI coach sounds like a great way to build up that skill.

Tell us, what exactly is AI coaching and how do you see it as changing the way AI supports employee growth and learning?

Theresa Fesinstine: Yeah, I think from my perspective, I see that there's a lot of opportunity and value for employees at all ranges of their experience to have support and insight, whether it be on their own performance or what's happening with the organization. And I really view that as a performance enhancer for the way that people work.

So AI has so many different ways to create insights and provide support for employees. New employees as they go through their early learning journey. Managers who are new to the role to understand how to navigate not only the tactical elements of management like delegation, but also those strategic and more challenging elements of management where it comes to performance or providing feedback.

And then certainly from a strategic level, I will say that I do think it's important to outline the fact that at the end of the day, we also need to understand some of the challenges that AI has in providing feedback and in the way that these models are built. And so to me, the priority isn't just about getting the closing those feedback loops and getting people more informed, but it's also doing it in a really responsible and thoughtful way.

Nicole Belyna: Those are all really, really good points. And so in what ways can AI tools help HR match employees with growth paths that align with things like their own aspirations, their manager's goals, and overarching business priorities?

Theresa Fesinstine: To me, one of the most exciting aspects of leveraging AI is the fact that sometimes it can see things that we don't naturally see. For us as humans, we are naturally biased to the experiences and the exposures that we've had. And that can include everything from the way we view other individuals to the way we view our jobs and the way that we view the organizations that we work within.

And so when we can leverage AI in a way through providing context around mission, vision, values, a great way for individuals to better understand perhaps how their jobs today and how their jobs over the next months and years align or don't align with what those organizational values are, can help create clarity not only for them, but for their team members on ways that they can actually bring more value to the organization.

I think that as workers, as employees, we all want to feel like we're contributing to the greater goals of the organization. And sometimes I have found in my 25 plus year career in HR that people have the desire, but sometimes don't know the path.

And where I believe HR or AI HR teams can help using AI is the ability to build out, whether it's through super assistants that are what I call these custom tools, custom GPTs or gems or whatever tool you're using. Many of them have this context to build super assistants. Using something like that to ask questions or to get feedback or to prompt with a current challenge you're experiencing through the lens of organizational vision, mission, values is a really great way for people to contextualize their work while also taking into account some of the expectations and the driving criteria with which that business is built upon.

Nicole Belyna: Yeah. So you've kind of touched on this and I'd love to expand, which is how specifically can AI tools help HR teams do a better job of recognizing and supporting different learning styles and different life experiences among employees?

Theresa Fesinstine: Yeah, I think that's actually, that's kind of a Pandora's box. So I'm going to take a step back from that question and say that as a working practitioner in HR for over 25 years, I don't think there's an HR professional that I've ever met that doesn't want to do more to help employees figure out their own path and help with their own development.

So to me one of the biggest barriers to that opportunity has always been time. And the number, the sheer volume of boulders that HR leaders are having to climb over in the day-to-day work, from compliance to safety, to engagement, to culture building to connection to promotions. I just feel, and I've always felt that the want-tos on the HR side have always been overshadowed by the need-tos.

And so I say that because I think with AI or the reality with AI is that there are so many simple, low hanging fruit workflows that can be simplified through the use of an artificial intelligence tool. That's kind of the first frame of it.

Perfect example of that is I used to work with, within one of my most recent in-house roles, we had every month HR part of our responsibility and something that we really enjoyed was helping build and connecting gathering sessions each month on different topics, whether it was for holidays or in-house organizational events.

What ends up happening, I found throughout the years is this sort of regurgitation of year over year doing similar things because it's really hard to ideate on new ideas. It's hard to get out of our box, if you will.

And where AI can really support this effort is in a few ways, number one, not just in the creative ideation, which generative AI is phenomenal with, but also it, so now you may be having a different idea, a new creative way to build connection, but it can also help with putting together the entire strategy that comes process the checklist to get things done. And that whole year can be completed in three, four hours instead of two hours every month, repeatedly, month by month.

What I'm seeing with organizations, I do a lot of different workout sessions from just baseline understanding to hackathons, to learning labs, hands-on sessions, keynotes, and every time I'm having these conversations, I think what I'm seeing right now is this focus on where the low hanging fruit is primarily, which I think is great, but getting managers and HR leaders to understand that there is more strategy that can be built in.

Once we get that need to manual process done in a more automated, efficient way, that is, to me, the goal of AI. AI is a means to an end to get us to be able to do the culture building the connectivity events, the focus on what is going to bring our talent feeling that they are truly thriving in their jobs.

Because if we can accomplish that, if we can get not just engagement, but inspiration from our employees, that's where we start to unlock long-term retention, real value build, organizational knowledge that starts to transform our companies.

But if we're always caught, just to give you an example, Nicole, I was having a conversation yesterday and we were talking about how so many companies, especially, it's not just the small scrappy companies, it's big enterprise companies that are still doing so many things manually. If you're still find yourself manually doing engagement survey results, if you still find yourself manually doing your headcount reports or at a company I worked with for a long time, we were doing performance reviews in Excel. Like those are drudgery of processes that really inhibit our ability to support employees in a meaningful way.

And so where AI steps in so beautifully is taking a lot of that manual kind of unseen labor at the early stage of process and allows us to focus our time, energy, and effort where it really gives upsize value to a company.

Nicole Belyna: Yeah, I really, really love that. So as you think about personalizing growth, it's also essential, as you've pointed out quite a few times just in the few minutes that we've been chatting, it's essential to keep human connection at the core of HR practices.

And in that same SHRM research I mentioned earlier, for example, 74% of US workers agree AI should also serve as a complement to distinct human capabilities rather than our replacements. So what are some ways HR teams can incorporate AI coaching into the performance management process so that people in human interaction remain front and center?

Theresa Fesinstine: So it's interesting, I was just working with one of the members of my monthly cohort yesterday, and we were building out a tool which she would have typically used a PowerPoint presentation or an email in order to facilitate this communication that wouldn't have been dynamic, that wouldn't have been interactive.

And together we worked together to build a, using Gemini, using a gem. We created a gem that literally would, she could share with her employees and it would go through a systematized series of questions that would help them actually prepare to write their reviews. It wasn't writing the reviews for them, but we built it so that it asked thoughtful questions relevant to previous answers.

So, if it started off with the question of, share a little bit about what you've accomplished this year. The response is going to take some of that feedback and then dig in a little bit deeper. Because on one hand, when you're talking about self reviews with employees, I think one of the, it's one of the hardest tasks we actually request of people to sit there with yourself and think about how you've done over a year.

It's easy to flippantly say, oh, I crushed it, or I rocked it, and then all of a sudden you have to write a review and you're just caught without having anything to say.

And so where I think AI is a really fascinating partner, number one is on the self-appraisal side where for yourself. Create a file. Create a project in ChatGPT, or create a conversation in Claude or a project in Claude and use that to help you throughout your year to just share information, share projects, share some linkage between the project management tools you're using and these other tools through connection and automation so that you can actually just augment your memory sometimes that's the hardest thing, right? Is just like, I remember what I did two months ago, but a year ago is just beyond. And if you're anything like me, midlife, menopausal, brain fog is real. It's going to take me a while to get back there.

So that's one piece, but I think HR leaders can also do with this amazing, Chrissy is her name. She's an amazing HR leader. She is wanting to build a real tool that's going to help her employees work through the self-appraisal process so that they really not only speak honestly and truthfully and objectively about where they can improve, but really speak a little bit about, here's what I've done this year, and have a bit of a self-promotion perspective around it.

The other side of that is providing managers with some of those tools as well. One of the things that I don't think people, certainly, the groups that I talk with often are surprised at me saying this or haven't thought about it, is if you're an organization that uses any sort of behavioral style survey, so Predictive Index, DISC, StrengthsFinders, whatever your survey of choices. Take that data. Take your behavior style. Take the behavior style of your team members, plug that together and think about how could I use this data to help me have a more fruitful conversation with my employees. AI can synthesize that in such a unique and interesting way.

The one thing we always have to be conscious of is you talked about human in the loop. I talk about it all the time because there is no, like, there's never saying it too much. The last survey I saw said 40% of people are taking what their output in AI is and plugging it directly into some other use case that is terrifying.

I think we want to have people that are using these tools in a positive way, but also using a critical eye to say, okay, most of these tools are embedded with bias, a lack of equity due to the creation of them. We, ourselves are biased humans, and so putting our own objective hats on and making sure that regardless of the output, we're looking at it, we're evaluating it, and we're validating whether it's true or not.

Going through that process and then delivering a review that's based on more than a manager with 10 direct reports has the mental capacity to handle in a two day period, which is what we usually have to deliver reviews. Like that to me is a game changer.

The follow up to that, Nicole, I think, is that now we've got a repository of insights from that prior, so everybody going into the 2025 review cycle is going to have some real critical feedback that they can then build into a new conversational tool, whether it's a custom GPT, a gem, a project, whatever you want to use, or even if you're on copilot or Gemini through Gmail and you have Google Docs or Word documents being able to create a document that gets referenced that does some check-ins.

With ChatGPT, Gemini, copilot. You can do some timed events, follow up with me in two months and ask me how I've done on this. So it becomes more of a support tool as coach, if we want to use that word, but more to me as a performance guide.

Nicole Belyna: You just mentioned, you said the term performance guide and so how can HR teams make sure that AI is helping employees feel guided and not micromanaged? I mean, even, I think at times employees will accuse HR teams of micromanaging. Right. So what are your thoughts on that?

Theresa Fesinstine: I can't imagine knowing an HR leader that has the time to micromanage employees. First off, I literally can't imagine it. That being said, I don't know that today's AI user, and I'm not talking about the super engineers that are creating the tools. I'm talking about your everyday non-tech employee that's trying to use AI in my experience, and I'm just going to talk about the thousands of people that I've connected with and spoken with throughout this year, doing these, the work that I do, I haven't seen that people are at this space where they feel like there's any sort of AI micromanagement.

I think what they, where most people present to me is still at the, oh wow, I didn't know phase. I'm using it for these, for the 5% tasks, the vetting of an email or the rewriting of a document or building of a policy, or I have not had that experience. I don't know if maybe in the survey results that I didn't catch that that's a challenge that people are feeling like that AI is micromanaging them.

I do think there's this really interesting relationship between this technology because of the advancement of natural language processing and the ability for these tools to express responses that sound very human. If we think about our day-to-day interactions, the only other space where we consistently type in a message and get a response like that is through text messaging, or through social media where we know there's a human, we believe there's a human behind that conversation.

And so what I find is a lot of people get frustrated with their AI tools, not quote unquote doing what they want them to do and sort of lose sight of the fact that this is at the core of what these tools are. It is literally just math. It is numbers going into a system and predicting an outcome.

I talk about this in my workshops a lot. If our words go in, those get tokenized, then worked into numbers, then it goes into the algorithm and it's neural networks all firing, and then it goes back into numbers, back into tokens, and it comes back out to us. And there's this journey that it goes on and somewhere in that journey, I think because it's happening so fast, people forget that it is still just a machine.

And so we have the opportunity to write the, in fact, the responsibility if things are, are start to change of whether we choose to use it or not. I say that in my sessions a lot. I'm like, I'm not here to convince you to love AI or to hate AI. I'm here to educate you so that you can make a valid choice on when and how you want to use it.

So micromanagement from AI I haven't heard of yet. I think it would be quite interesting if the technology has gets to a place where, again. Not including agent AI, but AI generative just starts to act on its own. I think we're, we would hear a lot more of that if that were the case today.

Nicole Belyna: Yeah. Yeah. I think it'll, we'll have to continue on a little, a little longer. Yeah. I wouldn't mind, I wouldn't mind AI micromanaging me some days, to be honest.

Theresa Fesinstine: Oh my gosh. I, yeah. I was talking this, I was like, when, when is it going to start to be able to do the dishes and fold the laundry? That's, that's $30,000 in a robot. I, that's the part that I, well micromanage away, clean up my kitchen please.

Nicole Belyna: Exactly. Yeah.

Theresa Fesinstine: Yeah. We need, what was her name from the Jetsons. That's who we need. Yep. Yeah.

Nicole Belyna: I love it. So, well, let's dig into some real life scenarios that elaborate on the benefits of AI. I'll describe some situations and I would love you to explain how an AI coach could support them. You ready? Okay. Perfect. All right, so we've got Robert, who is a new college graduate who recently joined the company. He's eager to learn, but a little unsure where to start. How could AI coaching help him find the right resources and set early career goals?

Theresa Fesinstine: Oh my gosh, I'm loving this. Okay, so I also, by the way, I am an adjunct professor. I teach undergraduates in AI and business and HR management, so this is right up my alley. I'm talking to my students right now about the tools that are available and how to leverage those tools.

One of the tools that I honestly, if I worked back in house and when eventually I may go back in house, truly one of the decisions that will be on my shoulders is what kind of enterprise solutions or organizational solutions are teams using? Some tools are better than others and it, for my money, I would require that I, and I don't get paid by any tools. I am agnostic. I don't take money for recommending tools.

But to me, one of the most amazing tools today is NotebookLM and what I would have them do, it's free if you have a Gmail account. What I would have them do is I would take any of the documentation that outlines the organizational information. So I would ask for things like, can you send me information on your vision, mission, values? Can you share the handbook? Can you share, can I get this information? Is there any departmental overviews that I could have? Can I have product information, sales information, customers, more, any of that kind of contextual information and use artificial intelligence to quiz yourself on the organization.

I think that's one of the challenges that new employees have is they sit in, and I've been there myself so many times, we sit in the balance of ego and curiosity. I just got hired for this job, and especially when I was younger, I wanted to prove myself damnit, right? I wanted to, I can do this job. I know everything I'm supposed to know. And when you're younger, you're afraid to sort of admit like, oh, I'm not really quite sure about this and my students are that way and I see that myself.

So I think being able to use AI as a study buddy or as a coach partner that can using some contextual information. Really open your mind up to what's available or what your organization does. The questions that you could be asking that would get to the deeper information.

Even taking it a step back, Nicole, use it for interviewing. What can you find out about the company? What questions should you be asking? One of the things I tell my students to, or give them the idea to do is upload these tools. ChatGPT, copilot, Claude, Perplexity, upload these tools onto your cell phone. And start a verbal conversation and just ask it to interview you for that job with that company, the best experience my students have had coming back to me and talking about how well prepared they felt for the interview.

Based on that experience, extend that concept into your work life. Today, almost all of us could probably benefit from taking our vision, mission, values for our company. Plugging them into a NotebookLM or a ChatGPT and creating a podcast about it or flashcards or a quiz or something to help us communicate better and better. Understand not just the company itself, but I think that important connection. I've been talking about this since 2000 when I became a, when I started running management training, the more you can connect the person's individual motivations to the job they have to do. That's magic. You start to create true curiosity and intention and connection, and that's what we all want.

In fact, I would say, and I don't mean to change the question, but I would say HR leaders, if you're not already building these as a part of your onboarding strategy, this is a low hanging fruit that could be done so fast, create a different gem or a different notebook or a different ChatGPT, whatever your tool of choice is, create a different one for each department and every time you hire somebody into that department, give them access to it. Give them the chance to query confidentially so they can build up their confidence a little bit in those early stages of being in a new job or in a new promotion.

Nicole Belyna: Yeah. Yeah. So I mean, one of the benefits that you've pointed out is clearly the opportunity to engage and personalize the employee's experience. And so the next scenario that I wanted to raise to you, and as you've brought up these really good ideas, I was kind of getting excited about it, is who's a high performing individual contributor wants to move into a management role, but doesn't have a formal leadership experience. So how could AI coaching help her build leadership skills and confidence?

Theresa Fesinstine: See, here, I think, is an example where we have to always keep in mind that it's not AI or this. It is a compilation of those two things. One of the ways, the first thing that I would ask Emily to, one of the first things I'd ask Emily to do is, number one, to actually look at all of the past experience she has and have AI help her identify where maybe she has had some leadership experience, but she hasn't necessarily had the title or the record for it.

Oftentimes. People have these amazing experiences, but because they're in a non-business environment, it's like we don't respect them. My vision of the future of work looks quite different today than it did five years ago. My vision of the next five years is that companies start to shift from having all W2 employees to having maybe 50% W2s, maybe 70, maybe 30% 1099s and maybe 20% AI support networks, right?

And so with that, I think companies are also going to be able to look at things less on a, here's what the job description says. More so on. Here's what the skills and talents we need look like. And so to me, Emily is in a perfect position to use a tool that can help her identify leadership skills that maybe she doesn't even realize. She would position as leadership number two, as a coach and guide to help her figure out the questions or the opportunities that may exist within her organization or even outside in her community in her. Where she has hobbies, where she spends her personal time in opportunities to demonstrate leadership there.

I don't think it's necessarily just being able to say, Hey, I was a manager here, but to be a really good leader, you actually need to lead things. You need to have the experience of challenge and disruption and uncertainty and then work through those. And so for Emily, it's going to be figuring out where can I get that? Not just the title, but the real experience of leadership and AI can help ideate, brainstorm challenge.

And where I see the human and the tool working together is to create a framework or an action plan for Emily to have this conversation with her organizational leadership, not just her boss or her manager, but how do I build my reputation of leadership? Amongst different levels of the organization, different departments within the organization.

To be viewed as a leader within a company, you really have to have the visibility across the organization where people view you as a leader. And so I think AI can kind of bridge that gap of creative thinking where you might not see the path forward clearly on your own. Perhaps your manager is helping but doesn't have the time to help you with that. AI can be another lens with which to view potential and opportunity in a way that's really meaningful and could move the needle for Emily.

Nicole Belyna: Yeah, absolutely. You know, you pointed out some really good ideas, whether you use it as a coach when you know when a person isn't readily available to, very basic things like just keeping yourself organized, keeping your learning plan organized. So, so yeah, really, really, that was a really fun exercise, Theresa.

So I wanted to shift our focus to some more practical concerns here that. Maybe even some fears that HR teams may face. How should HR address ethical considerations? You touched on this earlier, things like potential bias, privacy concerns when using an AI coaching approach to employee development.

Theresa Fesinstine: I don't even think it's a potential bias. It's been validated that bias exists in the tools that we're using for the conversations that I have. That's, I know I'm a broken record here, but it really does come down to human validation. That we shouldn't trust something just because it sounds really human, and we should recognize that we, in my opinion, we all have an impact on what the future of AI is going to look like.

I talk in workshops about how do we personalize our tools in a way so that we make decisions about where our content goes. For me, I share my information. I allow it to use it for future training models because one of the things I say a lot is that. In the building of the initial models, there weren't a lot of people that looked like me that were female, that were over the age of 50 that like, it just, they weren't a part of that mix.

If I can help create a different perspective based on the feedback I give the tools and the way that I use the tools, and that's a positive, but I always have to view AI through a lens of how it is, does have a tendency to bias towards. White males does have a tendency. If you go through, we, there was a big exercise going through LinkedIn about a year ago where people were putting in, based on what you know me, what would an image of me look like? And most of the women, myself included, ended up coming out like a white male was what it envisioned me to be.

There are ways that we can help do our own part to avoid that when I run my settings or I build my prompts, I include language that number one says. Use a inclusive lens with which to respond to this question. I put that in my settings. Do not discriminate. Do not prioritize any gender, sex, age, ability, race in your responses. You can customize your tools in that way.

The other thing I often tell it is do not make up facts. If you do not know an answer. Do not give. Tell me you don't know. Those are simple, prompt hacks that can result in better outputs.

But I think the place where HR leaders really need to double down on this is with the partners that they work with. So recruitment in talent acquisition is a huge space. Obviously, Workday is going through a big legal battle right now. Others are going to be going through legal battles, and if HR leaders don't think that it's going to kind of navigate itself down to some of these other tools, especially if you're using tools that are AI first new to the market.

And believe me, I love a new tool. I talk about them every month in my AI Quick clinics that I run for free at the end of each month. I talk about new tools all the time, but. If you haven't had the tough conversation with your vendors to say, how were your models trained? Were they trained on OpenAI data? Were they trained on your own data? How does my historic information get blended into that context? Because my historic data, my own company may have been incredibly biased in the hiring that we had. And so when you blend your historic data, that probably has some bias in it, and with a tool that also is biased, we don't end up with a great formula.

We all come from, we've transitioned seven tools over the past five years and the cleanup process, these companies, they ask us to go through an implementation, and it sounds great when you purchase it. I've done this many times. And then when you're in implementation, all of a sudden it's like, okay, you've got three days to get everything in the system. And you're like, oh, shit. I can't get all that in there right now. And so it ends up a little funky.

I think part of the things that HR leaders have to think about is also how do we make sure that the information we're putting in our systems is reflective of the company we are building for the future? And sometimes that takes a little bit of a step back to do the slow work, the un-fun work, so that we can get to the faster work and the better work and the more enjoyable work.

Nicole Belyna: Really, really good advice, Theresa. So let's leave our audience with one final takeaway from you. What is a simple first action HR teams can take to explore AI coaching in their organization? How can we dip our toes in?

Theresa Fesinstine: Connect with Theresa Festenstein and People Power AI. I say that and I say that in all truth. I, on LinkedIn, I am consistently communicating, posting articles, posts to try to help HR leaders. I think there's just so much noise. It's confusing if you know, I know that the only reason I'm able to have a successful business building and supporting HR leaders and their AI learning is because I wasn't in a full-time job. I wasn't in, I was, I'd started a whole separate business when I started learning AI. That was back in 22.

We are nine days from the third anniversary of when ChatGPT launched. It's hard to imagine that over the past five years, HR leaders have dealt with COVID, George Floyd challenges with the context of equity, AI, the government change, it's just so damn much. We've all had to learn so much, and so I think for HR leaders, the best place to start is to just lean into learning and curiosity, whether that's following somebody like me, following somebody else you like more.

I'm not so much seeing fear. About the tools, Nicole, anymore. What I'm hearing more frequently now is I don't want to be left behind. I had over the past, let's say, 20 conversations I've had with potential clients over the past two months that's come up on almost every call. I just don't want to be, we just don't want to be left behind.

And the advice I would give is don't let. Not starting, keep you from starting. And I think that's why it's important to lean in to the people that have the lived experience. And there's, in every category, there are people that are targeting people that work in finance and marketing. And even within HR, there's amazing people that are focusing on manufacturing environments and find the people that you. That speak your language through a lens of AI and you will, you will update yourself. You will get your skills improved. You will move past that fear of being left behind. And you'll start to think about ways creatively that you personally can use it. 'cause everybody's experience is going to be different.

Nicole Belyna: Great. Yeah. So good advice, just get started, but also guide yourself with someone you can trust like Theresa. So, well Theresa, thank you so much for sharing your insights with us.

Theresa Fesinstine: Absolutely. This was so fun, Nicole. Thank you. It's been a thoughtful conversation and I appreciate those the most because this is a lot of change for us in HR over the past few years and if there's one thing that I know about HR leaders, myself included, we are a resilient and an agile bunch.

And if we can just get past the like. We used to do it this way and realize that every few years going forward, there's just going to be some pretty significant change. And if we can sort of adopt the strength that we found through COVID and that change, we are tapped in to being the real leaders of the transition to a new way of work and work experience that can be really different. Hopefully magical.

Nicole Belyna: Yeah. Yeah, really exciting. Right? For sure. Well, thank you again and that's going to do it for this week's episode of Honest HR. We will catch you next time.

Monique Akanbi: Hello, friends. We hope this week's episode gave you the candid tips and insights you need to keep growing and thriving in your career. Honest HR is part of HR Daily, the content series from SHRM that delivers a daily newsletter directly to your inbox filled with all the latest HR news and research. Sign up at SHRM dot org slash HR daily. Plus follow SHRM on social media for even more clips and stories like share and add to the comments because real change starts with real talk.