Generative AI for financial coaching in human resources

January 13, 2026

Sara Maginn Pacella

Thoughtfully monitored adoption can be a solution for better AI integration within an organization. This can be particularly true when implementing measures like AI-led financial coaching. Research and examination prior to adoption and regular review of initiatives can be key to determining success in the implementation of any generative AI function within HR, including the use of generative AI for financial coaching.

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How companies are using generative AI for HR

McKinsey and Company explored cases that reflect HR’s possible use of generative AI with rapid integration, minimal programming requirements and some customization of existing databases and systems. The four potential areas for AI integration they identified include:

Content creation, such as job postings, images and communication to facilitate the recruitment process;
Data summaries to monitor performance, employee sentiment and performance appraisals;
Improved employee engagement through the development of a customized AI chatbot; and
Coding to interpret large blocks of data from numerous data sources.

Integrating generative AI in HR financial wellness offerings

People are utilizing AI chatbots for help in many aspects of their lives. Organizations may see AI as a way to help employees engage with workplace-sponsored financial coaching in a meaningful and cost-effective way. While many people are already using AI chatbots to create budgets and navigate their longer-term financial goals, understanding both the basics and the limitations of AI is key to overall success.

Kaitlyn Aitcheson, a financial planner from Sun Life, told MoneySense that in using AI for financial planning, “the ability to grab some basic information very quickly and easily, and kind of cut through the noise, I think, is very powerful.”

” only one-third of HR professionals have received formal training on their use of AI in HR, with their training rates also topping those of all professionals surveyed. ”

Potential benefits of using AI chatbots for financial coaching

Understanding the potential of AI chatbots is exciting. When used as a part of a financial wellness program, AI chatbots can:

Deliver fast responses to queries with unlimited 24/7 availability;
Respond to queries in multiple languages;
Offer self-serve options that allow employees to manage basic tasks themselves;
Provide personalized financial guidance;
Make proactive suggestions based on the types of questions they have been asked;
Track, collect and report on data that summarizes how they are being used and what they are being asked;
Reduce the number of HR requests;
Increase employee engagement with financial wellness tools;
Serve more employees compared to in-person financial wellness coaching; and
Enhance overall financial literacy.

Innovation without training

Organizations are strategizing the best ways to adopt AI as AI continues to evolve. The Human Resources Director reports that HR professionals are leaders in the early adoption of AI across Canada, and 81 per cent report using AI tools at work, a higher rate than in other sectors. More worrisome, though, is that only one-third of HR professionals have received formal training on their use of AI in HR, with their training rates also topping those of all professionals surveyed.

Challenges to address

While many are enthusiastic about beginning to work with AI, there are concerns to consider, specifically when implementing financial coaching tools.

Common challenges of using AI for HR related functions include:

Rapid changes in AI technology that may make it difficult to design a product that will meet longer-term needs and not become obsolete;
Potential for outdated or inaccurate recommendations;
Decision overwhelm over which tools will provide meaningful solutions to your HR department;
Risk of investing in a tool that is ineffective or only meets the needs of a small proportion of your workforce;
Managing algorithm bias based on historical data that may amplify biases;
Limited buy-in or distrust from product users;
Lack of transparency in how an AI product comes to certain decisions;
Improper integration and alignment with existing systems;
Loss of human connection, a critical component of many HR functions, including financial wellness;
Undertraining and change resistance;
Lack of proper governance, ethics, data usage, legal consideration and accountability for the use of AI technologies;
Storage of data and privacy concerns;
Potential for misuse of products causing serious risks; and
Excessive reliance and lack of understanding that AI should be used to augment the human aspect of HR, rather than replace it.

Generative AI coaching vs traditional financial coaching in HR

Many experts suggest that generative AI tools are just part of the equation in financial wellness coaching. People can utilize company-provided AI tools to ask basic questions surrounding their budgets, financial literacy and shorter- and longer-term planning and then verify the AI-provided information and recommendations with a human HR coach before putting their financial plans into action. This approach harnesses the benefits of AI while mitigating risks through human expert-led verification. Completing the pre-work with an AI chatbot can provide the background for a deeper, more succinct and more meaningful conversation with a financial coach.

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