How AI is already changing the world of work

AI is already changing the world of work, but not everybody is reacting to it in the same way, writes Laura AndersonAI is rapidly transforming the world of work. That much is clear. Understanding how different generations are adapting to this shift is therefore crucial for any organisation looking to the future.  Our recent study focusing on the generational differences in attitudes towards some of today’s biggest topics sheds some light on what might be driving these trends. Perhaps the most important finding was that nearly two-thirds of Gen Z feel concerned about AI’s impact on their future (only Baby Boomers reported more concern) – even though over half are still using AI day to day.

What’s more, AI use is wide ranging, with almost 4 in 10 people in the UK turning to it for work, 10 percent for productivity and even 1 percent when job hunting. Interestingly, working people in London are most likely to be using it for work (51 percent), while those in the West Midlands are least likely (30 percent).

One-third of working Gen Z are already integrating AI into their professional lives, and the applications are once again diverse – from streamlining simple tasks such as translations and drafting emails to more complex activities including organising their workday and writing reports.

While this is lower than it is for Millennials (49 percent) and Gen X (43 percent), there are already signs that our youngest working generation are relying on AI to do lots of cognitive heavy lifting. As one Gen Zer noted, “[I use it to] organise my life.” Meanwhile, another shared: “I use it to answer questions that I can’t think of myself.”

This growing dependence raises crucial questions for leadership development. As AI takes on more cognitive tasks, how do we ensure future leaders cultivate essential soft skills like creative problem-solving, effective people management, and the ability to navigate unprecedented challenges?

Despite their widespread use, Gen Z isn’t blindly embracing AI. In fact, they are acutely aware of its potential pitfalls: 61 percent think that AI will increase economic equality, 55 percent feel that AI makes people lazier, and 55 percent believe that it will negatively impact the environment.

Gen Z has grown up in an era of rapid technological change, making them far from naïve. They are benefiting from AI, but they’re also asking the hard questions about its implications. Of course, this poses a challenge for employers: how do we harness this powerful tool responsibly and empower employees to thrive in an increasingly AI-driven world?

AI is not the only challenge when thinking of Gen Z in the workforce. Our study also suggest that they are the loneliest generation, with 55 percent reporting that they often feel lonely and wish for stronger relationships in their lives. With remote and hybrid working models completely changing how we interact with colleagues, we need to determine how to foster deeper and more meaningful working relationships.

Then there’s the small issue of our ageing work population. As the average age of retirement rises (with 34 percent of women in deprived areas now working at age 65), we are witnessing all generations working together for longer, which can make the provision for different age groups in the workplace even more complicated.

 

Life stories

Generational differences are apparent when it comes to life priorities. Gen Z and Millennials prioritise wealth mental health and physical health over their careers. Drilling into the data, almost 4 in 10 people among these two age groups prioritise their mental wellbeing before anything else, compared to just 19 percent of Gen X and 10 percent of Baby Boomers. This often manifests as a better work life balance but can cause frustrations for managers and employers who are facing challenging times with rising employment costs and economic uncertainty. What some older generations may cynically call “quiet quitting”, Gen Z and Millennials may label as fairness and healthy boundaries.

And while younger generations have always been seen as lazy (don’t forget Gen X were called the slacker generation), many Gen Z and Millennials feel they are facing a broken social contract. Unlike their (mainly) Baby Boomer parents, they find themselves unable to afford to buy a home or even have children. While 70 percent of Gen Z without children express a desire to have them, nearly half say they simply cannot afford to. What will motivate younger generations to go above and beyond at work if these milestone investments are unattainable?

That doesn’t mean that financial instability is limited to the youngest generations. When we asked people how they would handle an unexpected £500 bill, Gen Z were the least financially equipped, but Millennials and Gen X were only slightly more likely to be able to pay it easily. We saw this financial instability for Gen X throughout our findings: they are most likely to cut spending in the next 12 months across several categories and self-report as the unhappiest generation.

These findings highlight the importance of workplaces evolving along with the workforce. Leadership skill training may become even more essential, as AI embeds further into our working lives. While generational divides in the workplace aren’t exactly new, organisations must meaningfully try to understand and respect different motivations and priorities when it comes to work-life balance. Motivations have shifted and differ by generation but money is a constant, with most generations feeling the pinch.

By addressing these challenges, organisations can build a more resilient, inclusive and productive workforce for the future.