Gen Z are enthusiastic AI users, but knowledge gaps hold them back

Generative AI is changing the way we work and live, and Gen Z has embraced it with open arms. This is the generation that grew up with smartphones and streaming, adapting to new technology is second nature. Tools like ChatGPT and MidJourney are practical solutions for daily challenges in their personal and professional lives. From brainstorming ideas to automating repetitive tasks, Gen Z is exploring AI’s potential faster than many of us anticipated.

“Gen Z are using AI tools extensively without fully understanding their inner workings or risks.”

There are three key areas where this gap becomes clear. First, cybersecurity risks. Many young professionals don’t realize how vulnerable their systems and data can become when using AI tools without proper safeguards. Second, hallucinations, a fancy term for when AI systems confidently deliver nonsense. In business, this can translate to costly errors if outputs aren’t thoroughly vetted. Lastly, there’s a misunderstanding about how AI is trained. Gen Z often doesn’t grasp that these models are built on vast datasets, sometimes pulled from public sources without explicit permission, raising ethical and legal questions.

For executives, this presents a clear opportunity. Upskilling programs that teach Gen Z how to use AI and how to use it wisely could transform this generation from casual users into AI-savvy professionals.

Recruiting gen Z

Gen Z is shaking up the workforce in more ways than one. Sure, they’re known for demanding work-life balance and fair pay, but don’t let that overshadow their potential. This is a generation brimming with creativity, adaptability, and a willingness to use technology to get things done. If you’re in the C-suite, the question is how to position your organization as their employer of choice.

One way to do this is by rethinking credentials. Traditional degrees are no longer the sole indicator of talent. With the rise of generative AI, many Gen Z candidates have honed skills through online courses, personal experimentation, and niche certifications. Expanding hiring pools to include non-traditional applicants is how you stay competitive

Upskilling opportunities are another lever executives can pull. When offering training programs, particularly in emerging technologies like AI, companies can tap into Gen Z’s eagerness to learn while addressing their knowledge gaps. It’s a win-win: you build a workforce ready for the future while showing young professionals you’re invested in their growth.

Data misconceptions and AI ethics

When it comes to data, Gen Z’s expectations and reality don’t always match. A recent EY survey found that 47% of Gen Z respondents believed AI developers need explicit permission to use personal or organizational data for training their models. It sounds fair, right? But the truth is more complicated. Most AI systems are trained on massive datasets scraped from public sources. While legal in many cases, this practice opens the door to serious ethical debates about privacy and consent.

Here’s why this matters. As AI becomes more integral to business operations, trust in the technology is paramount. If your employees, and by extension, your customers, don’t understand how AI operates, they’re less likely to trust it. Misconceptions like this one are risks to your organization’s credibility and compliance.

For executives, the takeaway is clear: transparency and education are non-negotiable. Be upfront about how your company uses AI and the data behind it. Set clear guidelines that align with privacy laws and ethical best practices. And don’t stop there, educate your workforce, especially Gen Z, about these standards. The result will be a team that uses AI and trusts it to drive smarter, more ethical decisions.

Key insights for decision-makers

  1. High adoption, low understanding: While Gen Z integrates generative AI into their lives, they lack knowledge in key areas like cybersecurity risks, AI hallucinations, and data sourcing ethics. Invest in targeted training programs to close these knowledge gaps and increase their responsible use of AI tools.

  2. Adapt hiring strategies: Gen Z prioritizes work-life balance and is skilled in self-taught or alternative learning pathways. Expand recruitment criteria beyond traditional degrees to attract diverse talent and align upskilling initiatives with emerging tech trends like generative AI.

  3. Address misconceptions about data use: Nearly half of Gen Z believes AI developers need explicit consent for data use, highlighting gaps in understanding data practices. Foster transparency in AI usage policies and educate employees on ethical AI to build trust and compliance.

  4. Use AI knowledge gaps as a competitive advantage: Misconceptions and skill gaps among Gen Z offer an opportunity for companies to position themselves as leaders in AI literacy and ethical practices. Develop comprehensive AI education initiatives to empower employees while reinforcing ethical standards.

Alexander Procter

January 23, 2025

4 Min