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Rotman Insights Hub | University of Toronto - Rotman School of Management Groundbreaking ideas and research for engaged leaders
Rotman Insights Hub | University of Toronto - Rotman School of Management

Is Gen Z ready to embrace AI? It’s complicated…

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Wendy Wang, Lauren Lin, Jeremy Chen, Matt Callahan, Angel Napit Annunciacao

Screenagers. Digital natives. The TikTok generation. It’s hard to find an epithet for those born between the mid 1990s and early 2010s — aka Gen Z — that doesn’t call out a dependency on technology. It wouldn’t be a stretch to assume, then, that those between the ages of 12 and 25 would glom onto everything generative AI.

But that’s not what we found.

IDEO embarked on a data-driven approach paired with qualitative research with a group of Gen Zs, asking them what they think about the AI that so many companies are rushing to fold into new and existing products. The findings immediately challenged many of the prevailing assumptions about Gen Z.

As companies begin to leverage AI to power everything from art and music generators to dating apps and even personal companions, it’s imperative that we understand how people will respond. This is a group that has already weathered the consequences of untested technology thrust upon them during their formative years (hello, social media), and it’s only fair that they have a say in shaping the next generation of technology and determining what aligns with their needs, and what disrupts their core values.

“I love being deeply connected to my intuition,” one 19-year-old told us. “And I feel like this technology can truly interfere with that and be super invasive to our natural rhythm and flow and trusting ourselves.”

To uncover ways we can responsibly design and innovate for their needs, we launched a stream of research into how to design AI for future generations. Our interdisciplinary team— which includes members of this cohort — began with a quantitative approach, following conversations on AI on TikTok, meticulously analyzing hashtags, video topics and comments. What emerged was a strong consensus: AI is a helpful tool for boosting productivity and efficiency, particularly for school (help with homework), career development (writing a résumé or cover letter) and daily routines (workouts or meal plans).

But we also discovered a profound ambivalence and much debate regarding the role AI should play in three specific domains: creative expression, human relationships and mental well-being. What was striking is that these pillars are fundamental to identity formation and self-perception — integral parts of the coming-of-age experience that have already been significantly shaped by social media and the COVID-19 pandemic.

We asked a group of 13- to 21-year-olds to share their thoughts about speculative AI products and services. Their responses surprised us. To dig deeper into this dichotomy, we created six sacrificial concepts — hypothetical AI products and services of the future.

  1. AI venture accelerator: A creative co-founder that helps you bring your idea to life.
  2. AI passion coach: A guide that identifies your skills and makes suggestions for how and where to apply them.
  3. AI muse: An generator of inspirational ideas that accelerate your creative pursuits.
  4. Our AI friend: A bot that helps your friend group interact and connect.
  5. New AI, new me: An avatar trained on your preferences that has experiences for you.
  6. Build a friend: Your ideal bestie come to life, based on celebs and influencers you love.

We presented the concepts to 12 young people, aged 13 to 21, encompassing varied life experiences and levels of familiarity with AI. Together, we delved into what really matters to them, unearthing their desires and concerns about the technology that will influence their future.

The insights we gleaned made us check our assumptions. The participants expressed a yearning for opportunities to learn through relationships, to try new things, and to embrace failure as part of their growth. They voiced concern about how AI companions might influence their expectations of genuine and complicated humans.

“You might start comparing your simulated friend with your real friends,” said one 20-year-old student. “And then start noticing all the flaws in your real friends, which might start damaging your relationships.”

Another participant pondered the consequences of a tool that eradicated mistakes or smoothed over challenges, as it would create an all-too-perfect reality. They viewed these experiences as essential components of life itself, stressing, “Let us figure out our challenges, let us work through things and have those emotions. Give us tools that could aid us along the way, or work on it, but let us have that experience because I think we need it.”

The lessons imparted by this cohort defy the prevailing technology-centric mindset and challenge the stereotypes slapped onto Gen Z.

As builders of AI products, we believe we must always return to people. We’re not suggesting we press pause on exploring novel ways to integrate emerging technologies into our systems. But let’s check our assumptions consider the unintended consequences and design AI for future generations with care and intention. Failing to do so risks making costly bets on products, services, and experiences that will fail outright. Or worse, creating new problems.

AI helped you with your final paper and made your workout plan — why not have it help resolve a conflict between you and your friends, or help you pick your career? Because that’s where artificial intelligence crosses the line from innocuous to intrusive — at least for the group of 13- to 21-year-olds with whom we spoke. To better understand how the next generation will respond to a new wave of AI products, services and experiences coming online, we prototyped hypothetical apps to elicit feedback. “AI passion coach” for one, is a guide that identifies your skills and makes suggestions for how and where to apply them. That didn’t go over so well. “I’m all for AI helping me find the most optimal way to learn once I know what my passion is,” a college freshman told us, “but finding a passion for me? Not so much.”

After sharing six concepts, we came away with some strong hunches about how this cohort wants to show up in the world — both in person and digitally. They’re not looking for products that can be creative for them, they want tools that help them be creative themselves — a subtle but important difference.

Just as digital maps have ruined our collective sense of direction, Gen Z fears that the generative AI’s shortcuts and automations may diminish their ability to form their own identity. As one 19-year-old explained, “It’s so much more valuable when you experience and learn something yourself versus being told it.”

Several feedback sessions on AI passion coach, along with two other hypothetical concepts (“AI Venture Accelerator,” a creative co-founder that helps you bring your idea to life, and “AI Muse,” an idea generator that accelerates your creative pursuits), yielded insights from which we drew three design principles for creating products and services that are more aligned with what young people want. If your business is integrating generative AI, consider these guidelines:

1. Use AI to scaffold the creative process

The Gen Zs we talked to don’t want to be handed the answer. They want to develop the capabilities to create something of their own. “I think there’s a line where AI can provide the groundwork and help be a resource, but then we get to choose what we do with it from there,” one 19-year-old said. Exploration, experimentation and reflection are important parts of the creative process that young people don’t want to see stripped away.

To align with that desire, companies can create AI services that help users discover and learn why and how something is created. Those aged 12 to 25 told us over and over again that being able to adjust their level of input and add their own vibe was very important to expressing who they are.

2. Lower the barriers to entry

This cohort recognizes that there are tactical skill sets that they and others may not have access to. They welcome AI opening up opportunities for those who may have great ideas, but lack the know-how to execute them. “I’ve been working on developing an app for sustainability. I can’t code, and I don’t know how to make an app, but I had the idea and wanted to make it real,” a college freshman shared with us. Instead of removing humans from the equation, companies could leverage AI to help users jumpstart their ideas and offer access to the resources and knowledge necessary to turn those ideas into reality.

3. Connect creative communities

Gen Zs find a sense of belonging and community through creative pursuits and look for those who share similar interests. “I feel like the beauty in creating things is definitely the insights I’m getting from other people,” said a 19-year-old entrepreneur. Just as mobile phones consume our attention, they suspect that other emergent technologies will isolate people and put optimization and productivity above the slower process of sharing ideas. “You achieve things more quickly,” said a 20-year-old student, “but you’re lacking the relationships that you build over time when trying to achieve those things together.” For companies looking to augment human creativity, this presents an opportunity. Instead of being a generator of machine-made solutions, AI can be a facilitator of human collaboration, allowing people to share tips, learn from diverse experiences, and build community.

As generative AI upends the way humans work, there’s a lesson to glean from this research. GenAI’s omniscience and ability to generate staggering creative output almost instantaneously is undeniably seductive. But the fundamental values that we cherish — our creative agency, our ability to actualize new ideas and our need to bond with others through collaborative work — are all key to the successful adoption of the AI products and services of the future. These principles are a good starting point for how to innovate wisely with human needs in mind.

AI and mental well-being

Earlier this year, Snapchat introduced My AI, a relentlessly cheerful chatbot powered by OpenAI’s GPT technology. The avatar, pinned to the top of your chat feed, was ready to respond to every passing thought, be it your 24/7 rant buddy or even… your new best friend.

You might imagine that Gen Z, cradled by the arms of technology from their earliest friendships found on Club Penguin or Minecraft, would welcome My AI. After all, this is a generation for whom dating starts with the subtle ‘like’ of a post or in the DMs of a swiped-up Instagram story. But in a surprising twist, Snapchat’s chatbot was an instant flop, resulting in a spike of 1-star reviews. That tracks with the responses of the 13- to 21-year-olds we spoke to, all of whom voiced a resounding ‘no’ to the idea of AI infringing upon their relationships. Rather than forming attachments to the programmed responses of AI, they are interested in cultivating genuine bonds with others that don’t require an algorithmic intermediary.

“How does this change our expectations of real life people?” asked one 19-year-old. “I feel like that could be super problematic for friendships because you’re like, ‘Oh, I just want this person to be different. Why can’t they talk like this? Why do they laugh like this? Why can’t they understand this? Why don’t they know everything about me? Why can’t they read my mind?’ Young people already feel the damage social media has had on their relationships and mental health. And they’re wary that AI will interfere with the relationships they’re just learning to foster.

Meanwhile, brands are in an arms race to create AI companions and AI clones that can be integrated into products and services. But when our team put a series of hypothetical GenAI-powered relationship products in front of a group of young people, they balked and even expressed discomfort. They want technology that augments human relationships — not bots that replace them.

These insights led us to three principles around well-being that we are using as guideposts as we design for this space.

Principle 1: Skip the engineered reality; reflect authenticity.

Perfect, personalized AI bots might breed dissatisfaction with flawed human friends. Plus, they’re just plain spooky. Gen Zs told us they would prefer tools designed to help them embrace the imperfections of relationships and help them navigate. “I don’t like the idea of being able to mould someone,” one respondent told us. “One of the teachings that I feel is super valuable in my life is acceptance and being able to go, okay, this is where I can meet this person.” Wary of social peacocking, face filters and all the doctored images of social media, they feel AI friends would only further the fakery they’re actively trying to undo.

Principle 2: Elevate human intuition and empathy 

There is a real concern that an over-reliance on AI could cause people to lose touch with their intuition. Gen Zs know that awkward moments with others — conflicts with friends, job interviews, even a bad vacation — are part of the human handshake. “Relationships are about you learning as you go,” another respondent said. “You’re not going to learn how to resolve conflict by yourself, you’re not going to learn how it feels to be lonely and push yourself to go meet people.” At the same time, they’d gladly accept help with maintaining friendships. A personal coach that could suggest activities or check calendars for times when you’re both free? Sure. Relationship advice? Bring it on. Perfectly streamlined interactions? No thanks.

Principle 3: Build in transparency to gain trust.

The people we chatted with were concerned about AI accessing their conversations. One told us, “There’s a lot of personal things that my friends and I talk about. And I wouldn’t just want a third-party listener all up in the mix or storing photos or information. I wouldn’t want to feel like it knows my whole life.” They want to know how much listening AI is doing, and how their data will be used by the companies that create it. They’re concerned about the racism that has surfaced, and how a system that reflects human bias might shape their perceptions of their own identity and the world. The concern is well-founded, and presents an opportunity for companies to be transparent about the information they collect and use to improve AI models, and mitigate unintended consequences.

Snapchat’s My AI and the host of potential AI-powered relationship products may seem attractive, promising the allure of companionship and understanding. Yet, this generation, while tech savvy, recognizes the value of genuine, organic human connections. The charm of flawlessly crafted bots pales against the nuanced, idiosyncratic, tender core of human interactions.

As we step into a future where AI is integrated into every experience, let’s remember that the best guides are our own instincts, not a bot trained on reading the Internet. The collective wisdom of Gen Z might be just the compass we need.

This article originally appeared in the Winter 2025 issue of Rotman Management magazine

Wendy Wang is a senior design research lead with IDEO’s Design for Play where she leads quantitative and qualitative research to co-design with youths around future technologies and experiences.
Lauren Lin is a product research intern at Slack and previously worked at IDEO’s Play Lab as a design researcher and toy inventor.
Jeremy Chen is an interaction designer at IDEO’s Play Lab.
Matt Callahan is a senior design lead at IDEO’s Play Lab, where he works as an industrial designer and design researcher.
Angel Napit Annunciacao is a senior business design director at Figma.