By Duncan Richardson, Vice President UK & Ireland, CoachHub
The financial services industry is facing a profound talent challenge. As the sector undergoes rapid digital transformation, firms are simultaneously contending with widespread skill shortages, employee burnout, and increasing attrition. According to McKinsey, more than 70% of all employees believe that within 2 years gen AI will change 30% or more of their work. The need for change and transformation is felt by leaders and employees alike.
In such a volatile landscape, talent retention is a strategic imperative. Yet traditional retention tactics, such as pay increases and perks, are proving insufficient. Instead, forward-thinking firms are turning to an emerging ally, AI coaching.
Why talent is walking
Burnout and stagnation are rife across the financial services workforce. Fast-paced environments, rising expectations, and a lack of personal development pathways have led to increased dissatisfaction. And this is more of a blow when these issues impact high-potential employees. Many leave not because of pay, but because they can’t see a future for themselves within the business.
In parallel, firms are under immense pressure to transform. AI transformation, regulatory change, and evolving customer demands require new capabilities. But companies often struggle to reskill and retain their existing workforce quickly enough. As the skills gap widens, organisations fall into a vicious cycle where transformation is delayed and workload pressure increases. This is when top talent walks out the door.
AI coaching as a scalable solution
AI coaching has the potential to change the game. Traditionally, coaching has been reserved for a select few, for example, senior leaders or high performers identified as future executives. But in an era where skill development and career growth are vital for all employees, this coaching model is no longer fit for purpose.
AI coaching democratises access to professional development by making personalised coaching available at scale. Rather than waiting for annual reviews or ad hoc training interventions, employees can receive on-demand support tailored to their goals, challenges, and career aspirations. From frontline staff to future leaders, every individual can benefit from real-time guidance and structured growth.
AI coaching empowers employees to build critical skills, navigate career paths, and stay motivated in uncertain times. Importantly, it doesn’t replace human coaches, but enhances the coaching journey, providing proactive nudges and continuous reflection to keep development on track.
From retention to business growth
When employees feel supported and equipped to grow, they stay. AI coaching creates a culture of learning, resilience, and adaptability, which are key ingredients for positive business performance. Organisations that invest in scalable coaching are better positioned to redeploy talent internally, fill skill gaps efficiently, and reduce reliance on costly external recruitment.
Moreover, widespread access to coaching supports inclusion and equity. It ensures that career development isn’t dependent on who shouts loudest or who’s in the right room at the right time. Everyone, regardless of role or background, gets a chance to grow and that sends a powerful message about what the business values.
In a sector as competitive and fast-moving as financial services, the ability to attract, develop and retain top talent is a distinct advantage. AI coaching offers firms the opportunity to shift from reactive talent management to a proactive, data-driven strategy for sustainable growth.
AI coaching is no longer a futuristic concept; it’s a practical tool with the power to transform workforces and unlock potential at every level.