[Real Beat] AI Storm, Different Calculations of Generation Z and Generation α [Office Shift] (34)

Generation Z, Strong in New Technologies but Also Facing Growing Fear of Job Loss
Alpha Generation Likely to Become the True First AI Natives

Editor's Note
[Zinbeat] is both “Hyunjin Jung’s Business Trend” and an abbreviation for “the real business trend,” a section that highlights shifting work trends. The 'Office Shift' segment within Zinbeat takes a detailed look at the transformation of offices brought about by the COVID-19 pandemic, laying the groundwork to explore new work formats through our shared experiments. This section is published every Saturday or Sunday. After 40 installments, it will also be available as a book.

# Rona Wang, who majored in mathematics and computer science at the Massachusetts Institute of Technology (MIT), recently decided to pursue a master’s degree in programming after graduation. She considered joining an IT company, but declined the job offers—she felt her prospective roles could be automated by machines. In an interview with the Washington Post (WP), she said, “This is a matter of staying ahead of the times,” adding, “I am empirically searching for jobs or skills that require judgment or research in some form, rather than simply performing tasks using technology.”

The surge of generative artificial intelligence (AI) is transforming the mindset of the Gen Z “new hires” and “digital natives.” As AI rapidly transforms workplaces worldwide, the jobs and workplace roles of this generation are also expected to change. Gen Z may lack accumulated work experience, but their ease with new technologies draws attention to how they may shape our workplaces. Is this infiltration of AI into the workplace a blessing or a curse for Gen Z?

Are Digital Native Gen Z Workers at an Advantage in the Age of AI?

Gen Z refers to those born from the mid-1990s to the early 2000s. This is the generation entering the workforce as new hires in the greatest numbers. According to the Organisation for Economic Co-operation and Development (OECD), Gen Z will account for 27% of OECD member country workers by 2025. In other words, one in four workers in major countries will be from Gen Z.

Gen Z is the “digital native” generation. They experienced the internet from birth, used smartphones even before their teens, and communicated with friends through social networking services (SNS). Their college years were lived alongside tablet PCs, and they have integrated various applications (apps) as part of their daily lives. During university, they were already encountering AI, using it proactively in assignments, and sometimes even as a source of entertainment.

This is why companies observe that Gen Z has strengths in AI literacy—the capacity to utilize AI—an increasingly sought-after skill. Carl Benedikt Frey, an economics professor at the University of Oxford, told U.S. business media outlet Business Insider, “I remember older employees struggling to adapt during past waves of technological innovation. From that perspective, Gen Z is well-positioned for the age of AI.”

The BBC also recently reported, “Gen Z, with their innate ability to adapt to technology, are likely to benefit from AI as it becomes an integral part of the modern workplace.”

Given these circumstances, more and more Gen Z employees who know how to utilize AI properly are playing a positive role in companies. Derek Hathaway, a director at U.S.-based medical device firm VEM Medical, told the BBC, “Thanks to young employees who automate tedious work and optimize tasks using AI, our productivity has surged.” In other words, Gen Z is displaying real competency in identifying and implementing automation for tasks that can be replaced by AI.

Furthermore, there is growing anticipation that Gen Z will help colleagues less adept with technology. Stephanie Forrest, founder of London-based technology consulting firm TFD, told the BBC that after implementing AI tools in the workplace, younger employees have even begun “reverse mentoring” older colleagues on technology adoption.

"Worried About Losing Their Jobs" — Why Are Gen Z’s Fears So Acute?

Ironically, Gen Z has greater anxiety than any other generation that the adoption of AI in the workplace will cost them their jobs.

According to a survey conducted by global accounting and consulting group KPMG of about 1,000 American adults between April and May, Millennials (born in the early 1980s to early 2000s) and Gen Z were the generations with the highest concerns that AI would replace their roles. Respectively, 48% and 44% of them answered that they were “worried” or “very worried.” In comparison, 39% of Generation X (born in the late 1960s to 1970s) and 35% of Baby Boomers (born 1955–1963) gave the same response, a relatively lower rate.

Sandy Torchia, a vice chair at KPMG, explained that Baby Boomers and Generation X are closer to retirement than Millennials & Gen Z, and through their careers have already experienced and adapted to many waves of technological change. The experience of adjusting to the rise of computers, smartphones, and video conferencing throughout their working lives has lessened their anxiety. Millennials & Gen Z, having no work experience before the rise of new technology, may be more sensitive to such upheaval, Torchia assessed.

However, to attribute Gen Z’s anxiety solely to lack of firsthand experience with technological disruption overlooks just how significant the impact of AI may be today. For new employees, learning on the job through simpler tasks such as spreadsheet or document creation is less appealing if AI will soon take over those activities altogether. In short, Gen Z are the first generation facing head-to-head competition with AI for core job responsibilities.

It’s already hard enough to find a job; even after being hired, training programs for new employees have declined compared to the past, making it more difficult to learn on the job. According to a 2014 study by University of Pennsylvania professor Peter Cappelli, young employees averaged 2.5 weeks of training annually in 1979, but by 1995, that figure had plunged to just 11 hours per year. Nowadays, companies often favor “experienced rookies”—applicants who have already gained skills at other firms and require no training, hence the phrase “secondhand new hire.”

Ed Zitron, CEO of U.S. PR firm EZPR, assessed in a Business Insider op-ed, “With the rise of generative AI, many organizations have even eliminated remaining efforts to train young employees by automating tasks.”

Will ‘Alpha Generation’ Be the True AI Natives?

If Gen Z is the “digital native” generation, their successors—the “Alpha Generation (Gen A)”—are predicted to be the “first true AI natives.” Gen A refers to those born from the early 2010s to the early-to-mid-2020s. This generation is growing up with AI as a constant companion, beyond just the internet. It is anticipated that Gen A will learn through AI and master the art of crafting precise and varied prompts.

According to Fortune, Bank of America (BoA) analyst Martin Briggs recently remarked in a report that the emergence of AI is comparable to the advent of the iPhone in its potential to reshape industries, the economy, and even entire generations. He said, “Demographically, we are in the early stages of an Alpha Generation revolution. If Gen Z, as the first cohort born and raised in the online world, are today’s most disruptive generation, Alpha Generation will spend their formative years alongside AI models.”

Once Alpha Generation enters the workforce in about a decade, another transformation of the workplace is expected. Timothy Papandreou, advisor at Google’s parent company Alphabet, predicted at a recent event, “Children will have AI assistants and agents from birth, making Gen Z the last generation to grow up without AI as a constant companion.” He forecasted a shift from a “programmer generation”—those who directly write code—to a generation of “perfect prompters” adept at working with AI assistants.

This content was produced with the assistance of AI translation services.