Why 62% of Gen Z Aren't Buying the AI Dream

Published Date : 19/06/2025 

While Generation Z is tech-savvy, they are increasingly skeptical of AI's overhyped promises. Discover why 62% of Gen Z workers believe AI is not living up to its potential and what this means for the future of work. 

Artificial Intelligence has long been hailed as the crown jewel of 21st-century innovation, often portrayed as a magic wand in the tech world. However, it is now facing a significant identity crisis, especially among Generation Z. According to GoTo’s Pulse of Work 2025 report, 62% of Gen Z workers believe AI is significantly overhyped. This is not a passing complaint but a cultural reckoning that reflects a critical scrutiny of AI's actual capabilities.

Gen Z is not anti-tech; they are anti-hype. This generation, known for its tech-savvy nature and continuous challenge to the status quo, has seen the full lifecycle of tech trends, from meteoric rises to embarrassing crashes. From the crypto bubble to the metaverse misfires, Gen Z has learned that not all that glitters in tech is gold. When it comes to AI, they are not mesmerized by the buzz; instead, they are asking hard questions. Is AI error-free? Not quite. Does it understand context? Rarely. Can it replace human empathy or judgment? Certainly not. As a result, Gen Z workers are taking a step back, cross-checking AI results, validating claims, and challenging assumptions.

The underutilization of AI is a significant issue. According to the GoTo report, 86% of employees across generations admit they’re not using AI to its full potential, with Gen Z clocking in at a surprising 78%. For freshers, 74% of Gen Z workers agree they are not very conversant with the practical applications of AI in their roles. While they know how to generate content using ChatGPT or automate a workflow with Zapier, they struggle to marry these tools to measurable business outcomes. Many are using AI for surface-level tasks like emails, edits, and ideation, but not for high-impact work like strategic planning or analytical decision-making.

The cost of this underutilization is staggering. According to GoTo, employees waste 2.6 hours per day—13 hours per week—on tasks AI could easily handle, amounting to a potential $2.9 trillion in annual productivity gains for U.S. businesses alone. Despite this, Gen Z remains unconvinced. They are not treating AI as a scapegoat but are weighing its practical traction against its theoretical promises. The reality, they believe, is far from meeting the hype.

Several reasons explain why Gen Z is hesitant to put AI to work. One is the lack of contextual training. Even the most intuitive AI tool is only as effective as the person operating it. The report reveals that 82% of employees are not confident in applying AI to everyday work scenarios, and 87% say they haven’t received proper training. While Gen Z is tech-savvy, they need guidance to make AI work for them. Another reason is the trust deficit. AI’s famous anecdotes of inaccuracy and errors are not unheard of. Gen Z has seen AI hallucinate answers, spread misinformation, and struggle with nuance. They’d rather do the legwork themselves than gamble on flawed outputs.

Lastly, there is a misalignment in use cases. AI is designed to automate repetitive tasks, but many Gen Z users are experimenting with it in emotionally sensitive or ethically grey areas, such as conflict resolution or strategic planning, where it often fails. This mismatch further reinforces their belief that AI is not all it is cracked up to be.

The challenge is not that Gen Z doesn’t believe in AI; it is that they are skeptical of using it blindly. To unlock AI’s full potential, companies must meet Gen Z where they are. This includes providing targeted training tailored to roles, crafting smart policies that offer clarity, and democratizing access to advanced tools, especially in smaller organizations where the adoption gap is steep. With 61% of workers stating they’d prefer advanced AI tools over office perks, the message is clear: If companies want buy-in, they need to invest not just in tech but in trust, training, and transparency.

Gen Z’s skepticism is not a roadblock but a much-needed reality check. As the first generation to truly grow up alongside technology, they are uniquely positioned to ask the right questions: What does this tool actually solve, and at what cost? Their critical lens is not an indictment of technology but a call to use it wisely. Rather than clapping for every algorithmic advance, these digital natives are urging both technologists and employers to ensure that AI is transparent, trustworthy, and truly transformative. They are not shrugging off the presence or potential of AI; they are raising the bar for it.

In an era rushing headlong toward automation, Gen Z is not slamming the brakes. They are steering us toward a more thoughtful, human-centered future, where intelligence, artificial or otherwise, is held to account. 

Frequently Asked Questions (FAQS): 

Q: Why is Gen Z skeptical of AI?

A: Gen Z is skeptical of AI because they have seen the full lifecycle of tech trends, from meteoric rises to embarrassing crashes. They are asking hard questions about AI's actual capabilities, such as its accuracy, context understanding, and ability to replace human empathy.

Q: What percentage of Gen Z workers believe AI is overhyped?

A: According to GoTo’s Pulse of Work 2025 report, 62% of Gen Z workers believe AI is significantly overhyped.

Q: Why are Gen Z workers not using AI to its full potential?

A: Many Gen Z workers are not very conversant with the practical applications of AI in their roles. They often use AI for surface-level tasks but struggle to apply it to high-impact work like strategic planning or analytical decision-making.

Q: What are the main reasons Gen Z is hesitant to put AI to work?

A: The main reasons include a lack of contextual training, a trust deficit due to AI's inaccuracy and errors, and a misalignment in use cases where AI often fails in emotionally sensitive or ethically grey areas.

Q: How can companies address Gen Z's skepticism toward AI?

A: Companies can address Gen Z's skepticism by providing targeted training tailored to roles, crafting smart policies that offer clarity, and democratizing access to advanced tools. They must invest in trust, training, and transparency to ensure buy-in from Gen Z workers. 

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