Gen Z uses AI the most, but it's eating up their jobs. Disturbing trend of AI turning from assistant to replacement of young workers

Generation Z, born into the internet age in the late 1990s and early 2000s, are widely known to embrace artificial intelligence (AI) — from content creation to workplace automation. But new, unsettling research suggests that the generation leading AI adoption is also its biggest casualty in the workforce. The reason? Entry-level jobs traditionally filled by young workers are rapidly being replaced by AI systems.

Studies show how Gen Z is disproportionately affected by AI adoption

Recent studies by Stanford University and Deloitte suggest that AI may be transitioning from assistant to replacement — particularly for Generation Z roles.

Gen Z, typically defined as those born between 1997 and 2012, are true digital natives. Growing up surrounded by smartphones, social media, and constantly evolving technology has made them early adopters of AI tools.

Deloitte’s Gen Z and Millennial Survey found that approximately 25 per cent of Gen Z workers who use AI at work do so “all or most of the time.” Many believe AI can increase productivity and improve work–life balance.

A 2025 report from Master of Code Global found that 70 per cent of Gen Z actively use generative AI tools, often daily. These are used for tasks such as writing, coding, design, and problem-solving.

AI is reducing Gen Z job opportunities — and it’s a growing concern

But while Gen Z may be leading the charge in AI adoption, they are also facing disproportionate job losses due to automation.

A 2025 study by Stanford University’s Digital Economy Lab, led by Erik Brynjolfsson and colleagues, analysed payroll data from ADP and found that employment among workers aged 22 to 25 in AI-exposed fields — such as software development, customer service, and clerical work — declined by 13 per cent between late 2022 and mid-2025.

In contrast, older workers in the same fields saw stable or even increasing employment rates.

The report attributes this generational divide to the nature of tasks involved. Entry-level roles often involve “codified knowledge” — structured, repeatable tasks that are easily automated by AI. Meanwhile, older workers possess “tacit knowledge” — experience-based skills and intuition that are harder to automate.

As Brynjolfsson put it, the challenge ahead is ensuring that AI serves as a tool for empowerment, not exclusion — especially for those just starting out in the workforce.

Entry-level positions — often held by Gen Z — are particularly at risk. Is it time to pivot?

Concerns are spreading globally. A 2024 survey conducted in India by BML Munjal University found that 44 per cent of Gen Z respondents fear job displacement due to AI, while 63 per cent worry about long-term job instability.

In response to these challenges, many Gen Z workers are reassessing their career options. A report by Business Insider highlighted a growing shift among younger workers towards blue-collar and skilled trades such as electrical work, plumbing, and landscaping that are less susceptible to automation.

Experts argue that systemic changes are needed. Strategic policy interventions — such as updated curricula focusing on AI collaboration, digital resilience, and soft skills — are essential. Hiring practices must also adapt to ensure entry-level roles remain viable pathways into long-term careers.

Without these changes, Gen Z faces the risk of becoming a “lost generation” in the workforce. The erosion of entry-level opportunities could lead to lasting effects on economic mobility and social equity.

What's the way forward for Gen Z workers threatened by AI automation?

AI is undoubtedly transforming the world of work, but without deliberate efforts to guide this transformation, it risks deepening generational inequalities. While Gen Z may be the most AI-literate generation yet, they also stand to lose the most from unregulated AI-driven disruption.

As Brynjolfsson warns, the future depends on balancing AI innovation with policies that protect and prepare young workers for a fast-evolving, tech-enabled job environment.