[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[Jjinbit] is short for 'Jung Hyunjin's Business Trend' and 'Real Business Trend,' a segment that showcases trends in the changing nature of work. The segment within Jjinbit called 'Office Shift' closely examines the changes in offices triggered by the COVID-19 pandemic and aims to lay the groundwork for finding answers to new work styles through the experiments we have experienced together. It will be delivered to you 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 offer because she thought the position could be automated by machines. She told The Washington Post (WP), "It's a question of whether this is ahead of its time," adding, "From experience, I am looking for jobs or skills that require judgment or research in some way, rather than simply performing tasks through technology."

The generative artificial intelligence (AI) boom is changing the mindset of Generation Z, who are 'new employees' and 'digital natives.' As AI rapidly transforms workplaces worldwide, their jobs and roles within companies are also expected to change. Although they lack work experience, the familiarity of Generation Z with new technologies draws attention to how their characteristics will influence our workplaces. Is the arrival of AI in the workplace a good thing or a bad thing for Generation Z?

Digital Native Generation Z, Advantageous in the AI Era?

Generation Z refers to those born between the mid-1990s and early 2000s. They are currently the generation entering workplaces as new employees the most. According to the Organisation for Economic Co-operation and Development (OECD), by 2025, 27% of workers in OECD countries are expected to be from Generation Z. This means one out of every four workers in major countries will be from Generation Z.

Generation Z is a 'digital native' generation. They experienced the internet from birth, had smartphones before their teenage years, and communicated with friends through social networking services (SNS). Their university life involved tablet PCs, and they embraced various applications (apps) as part of their daily lives. During college, they were already exposed to AI, actively using it for assignments and sometimes even as toys.

This is why Generation Z is considered to have strengths in AI literacy, the ability to utilize AI, which companies are seeking in talent. Carl Benedict Frey, an economics professor at Oxford University, told the U.S. economic media Business Insider, "I remember that older workers had difficulties adapting during past technological innovations," adding, "From that perspective, Generation Z is well-positioned in the AI boom."

Especially, the BBC recently reported, "Generation Z, based on their innate ability to acquire technology, is likely to benefit from AI as it becomes an important part of modern workplaces."

Given this situation, cases are emerging where Generation Z, who know how to properly utilize AI, play positive roles in companies. Derek Hathaway, director at U.S.-based medical device company VEM Medical, recently told the BBC, "Thanks to young employees who use AI to automate tedious tasks and optimize work, productivity has suddenly increased." This means Generation Z demonstrates their abilities well in identifying and applying tasks that AI can replace.

There is also a prospect that Generation Z can assist colleagues who are not proficient with technology. Stephanie Forrest, founder of London-based tech consulting firm TFD, introduced to the BBC that as AI was introduced into work, young employees sometimes provided 'reverse mentoring' to senior colleagues, teaching them technology.

"Fear of Job Loss" Is High Among Generation Z... Why the Concern?

Ironically, Generation Z has greater fear than other generations that AI's application to work could lead to job loss.

A survey conducted by global accounting and consulting group KPMG in April-May among over 1,000 U.S. adults found that the generations most worried about AI replacing their roles were Millennials (born early 1980s to early 2000s) and Generation Z. Among them, 48% and 44%, respectively, answered they were 'worried' or 'very worried.' The rates for Generation X (born late 1960s to 1970s) and Baby Boomers (born 1955?1963) were relatively lower at 39% and 35%, respectively.

Regarding this, Sandy Torchia, Vice Chairman of KPMG, explained that Baby Boomers and Generation X are closer to retirement than the MZ generation and have experienced many technological changes during their careers, witnessing the outcomes. Throughout their working lives, computers, smartphones, video conferencing, and other technologies emerged, but their experience adapting to these reduced their anxiety. Torchia assessed that the MZ generation, lacking work experience without new technologies, may be more sensitive to such changes.

However, it is not enough to dismiss Generation Z's concerns simply as a lack of direct experience with technological changes, as the impact of AI technology is expected to be greater than ever. For new employees learning work through relatively simple tasks such as spreadsheet creation or general document writing, it is undesirable that AI replaces all these tasks. Simply put, Generation Z is the very generation that must directly compete with AI for work assignments.

It is already difficult to get a job, and even after entering a company, compared to the past, training for new employees has decreased, making it harder to learn work. According to a 2014 study by Peter Cappelli, a professor at the University of Pennsylvania, young employees received an average of 2.5 weeks of training annually in 1979, but this dropped sharply to 11 hours per year by 1995. Recently, the term 'used new hires' has emerged, referring to companies preferring to hire new employees who have already gained experience at other companies and require no training.

Ed Zitron, CEO of U.S. PR firm EZPR, wrote in a Business Insider op-ed, "With the advent of generative AI, many organizations have eliminated even the last attempts to train young employees through work automation."

The Real AI Generation Is the 'Alpha Generation'?

If Generation Z is the digital native generation, the following 'Alpha Generation (Gen.A)' is expected to be the 'AI native first generation.' The Alpha Generation refers to those born from the early 2010s to the early-to-mid 2020s. They grow up with AI by their side, beyond just the internet. It is anticipated that a generation will emerge that learns knowledge using AI and knows how to write prompts accurately and diversely.

According to Fortune magazine, Martin Bricks, an analyst at Bank of America (BoA), recently stated that the rise of AI is similar to the time when the iPhone appeared, reshaping industries and the global economy and changing entire generations. Bricks said, "Demographically, we are in the early revolutionary stage of the Alpha Generation," adding, "If Generation Z is the first generation born and raised in the online world and currently the most disruptive generation, they (the Alpha Generation) will grow up alongside AI models."

It is expected that workplaces will look different again about ten years from now when the Alpha Generation enters the workforce. Timothy Papandrou, an advisor at Alphabet, Google's parent company, recently said at an event, "Children will have AI assistants and agents from birth," predicting, "Generation Z will be the last generation not to grow up with AI." He also foresaw that the Alpha Generation will lead the transition from the 'programmer generation' who codes directly to the 'perfect prompter generation' who knows how to utilize AI assistants.