Artificial intelligence or inflated illusion? Why 62% of Gen Z are not buying the AI dream - Times of India

Artificial Intelligence, often sobriqueted as a magic wand in the tech world and a saviour technology, is facing an identity crisis. Long billed as the crown jewel of 21st-century innovation, its shine is waning, especially among Generation Z. The generation known for growing up on screens and swiping through knowledge is now casting a skeptical eye on the current, emerging definition of the "future of work." According to GoTo’s Pulse of Work 2025 report, 62% of Gen Z workers believe AI is significantly overhyped. That’s not a passing complaint, it’s a cultural reckoning.In an age where tech solutions are expected to be both omnipresent and omnipotent, AI’s reality hasn’t lived up to its relentless publicity. But why is the so-called "AI native" generation, who feeds excessively on a digital diet, crying wolf on AI? The answer resides not in ignorance, but in critical scrutiny.

Gen Z is not anti-tech, they’re anti-hype

Is Generation Z, the most tech-prowess generation apprehensive of the potential of Artificial Intelligence? No. As the headlines have often dominated and well-labelled the current generation to be the most rebellious, continuously challenging the status quo.

It is slightly unbelievable on their part to be afraid of a technology that helps them become more productive.This generation 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. So when it comes to AI, they’re not mesmerized by the buzz, they’re asking the hard questions.Is AI error-free? Not quite.Does it understand context? Rarely.Can it replace human empathy or judgment? Certainly not.And so, instead of blindly keeping machines over humans, Gen Z workers are taking a beat. They are cross-checking AI results, validating claims, and challenging assumptions. It is this instinct to “trust, but verify” that is demarcating them from older generations who may view AI as a turnkey solution. According to the GoTo report, 68% of workers believe AI is misrepresented as flawless and infallible, while 64% say it’s wrongly touted as a one-size-fits-all fix. Gen Z is not falling into the trap. They have learnt it better not to place blind faith in an algorithm with a knowledge cutoff and no conscience.

AI isn’t delivering on the ground

With all of the AI talking, there is another interesting revelation in the report. And, here’s the catch: 86% of employees across generations admit they’re not using AI to its full potential, with Gen Z clocking in at a surprising 78%. The reasons are as compelling as troubling.For freshers, 74% of Gen Z workers have agreed they are not very conversant with the practical applications of AI in their own roles. While they know how to generate content using ChatGPT or automate a workflow with Zapier, they grapple to marry these tools to measurable business outcomes. Many are simply utilising AI for surface-level tasks, like, emails, edits, maybe a bit of ideation, but for not for high-impact work like strategic planning or analytical decision-making.So yes, the toolbox is there. Is it gathering dust? Not literally. However, as the saying goes, "having the keys to the kingdom means nothing if you don’t know which door to open.”

Underutilization: A missed opportunity worth trillions

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. That’s not just a dent in efficiency, it’s a canyon-sized crater.Yet, even with a different picture that is presented, the Generation Z remains unconvinced. It is not the fact that they are treating AI as the scapegoat. However, they are not absolutely fanatical about its potential. The reason? They are weighing AI by not its theoretical promises but its practica traction. According to them, the reality meeting the hype is a far cry.

Why Gen Z isn’t putting AI to work (yet)

The Generation that is often labelled as “lazy” and unwilling to work is apprehensive of putting AI to work. Is this an ingrained psyche, or does the stance carry weight? Here are a few reasons that substantiate the reason young workforce is not trusting the bots.Lack of contextual trainingEven the most intuitive AI tool is only as effective as the person operating it. The report reveals that 82% of employees aren’t confident in applying AI to everyday work scenarios, and 87% say they haven’t received proper training. Yes, Generation Z is tech prowess but it is a false belief that they do not need training. They need guidance, not just to access, but to make AI work for them.Trust deficitWhile AI is the talk of the town, its famous anecdotes of inaccuracy and errors is not completely unheard of. Hence, 86% of employees aren’t confident in the accuracy and reliability of AI tools.Gen Z, in particular, has seen AI hallucinate answers, spread misinformation, and struggle with nuance. They’d rather do the legwork themselves than gamble on flawed outputs.Misaligned use casesAI has taken birth to automate repetitive tasks, many Gen Z users are experimenting with it in emotionally sensitive or ethically grey areas, like conflict resolution or strategic planning where it is deemed to falter. This mismatch further reinforces their belief that AI is not all it is cracked up to be.

Bridging the chasm: Turning skepticism into strategy

The ordeal is not that Gen Z doesn’t believe in AI; it is that they are screaming no to using it blindly. With the apprehension of AI replacing humans floating around, they know it is a shallow stance. And perhaps, that is a clarion call for the corporate world.To unlock AI’s full potential, companies must meet Gen Z where they are:

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.

A generation that demands more than hype

Gen Z's skepticism is not a roadblock; it is 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 even 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 simply steering us toward a more thoughtful, human-centered future, where intelligence, artificial or otherwise, is held to account.