'Gen Z knows more about AI than their bosses. It's about to change how we all work.'

Thanks to our brand partner, Microsoft

The first time I used AI at work, it felt a bit like cheating.

I'd type something in, get an instant answer, and then spend five minutes wondering if I could trust it. And like a lot of people, I'd use it intensely for a week… then forget it existed… then rediscover it when I needed a quick fix.

But recently, something shifted. I started to notice how quickly people around me (the early-career crowd) who grew up with technology woven into every part of their lives were picking up AI without hesitation.

Not as a gimmick. Not as a shortcut. But as a sort of 'thinking partner'.

So, when Microsoft's latest research revealed that 70 per cent of Gen Z are already using AI at work and 96 per cent are engaging with it weekly, it didn't surprise me.

And then I met the person who could explain why: Sarah Carney, Microsoft's National Chief Technology Officer for Australia and New Zealand.

Because the real story here isn't that Gen Z is "good with tech". It's that the traditional knowledge gap — the one that used to run top-down from older to younger — has collapsed. And that changes everything about how we learn, lead, and work together.

"My AI usage dipped before it became valuable". Sarah laughed when she told me this. "When I first started using AI, my usage actually dropped… and then I realised I needed to be more intentional. It was only through consistent practice that I learnt how it could really support me."

It's a refreshingly honest admission from someone whose job title includes the words Chief, Technology, and Officer. But Sarah said her experience mirrors what workplaces get wrong. "Leaders often assume people will just 'figure out' AI. But productivity isn't even across an organisation. People need permission, modelling, and consistency before their habits really shift."

In other words: it's not enough to give people tools. You need to help them learn how to use them — and feel safe experimenting.

And that's where Gen Z is different. Gen Z isn't waiting for permission. This generation is using AI faster and more confidently than anyone expected.

Microsoft's study found that 81 per cent of Gen Z say AI has boosted their confidence and visibility at work. 62 per cent have taught a senior colleague an AI shortcut. "They're using AI to get started, to brainstorm, to work faster," she said. "But they're not using it to develop deeper thinking yet — and that's where leadership needs to step in."

The tension sitting underneath all of this.

A lot of people are still hesitant to use AI because they're worried it will replace their job or that they won't be "good enough" at it to keep up. Sarah hears that fear every day.

"But the truth is AI isn't taking your job," she told me. "It's taking the parts of your job that were never a good use of your talent. When you remove repetitive work, you create new capacity and that enables possibility and innovation."

She believes AI will reshape entry-level roles, not erase them. "We can truly recreate what these new early-career roles can be — and that's exciting."

Using Microsoft Copilot as your 'thought partner', not the shortcut.

I asked Sarah to explain Microsoft Copilot for anyone who's heard the hype but isn't sure where it actually shows up in their day. "It's built into the tools you already use every day — Word, Outlook, Teams," she said. "It helps you brainstorm, create and analyse. It's not there to replace your creativity. It's there to enhance it in the flow of work."

For Gen Z, Copilot isn't replacing effort, it's replacing the fear that they don't know enough. "It gives them confidence to show up prepared," Sarah said. "It levels the playing field. Suddenly, someone one year into their career can brainstorm like someone ten years in."

But — and this is the part leaders need to hear — it doesn't replace judgement. "AI can give you options," she said. "It can't tell you which one is right in your context. That's where capability-building comes in." 

Critical thinking in a world full of shortcuts.

I know that AI can make us work faster, but not smarter, so I asked the question that sits at the heart of all this. With AI giving instant answers, what skills now separate someone who performs well from someone who struggles? 

Sarah doesn't hesitate. "Curiosity. Creativity. Critical thinking. Communication. The human skills. AI will draft something for you but you need to evaluate it, challenge it, refine it."

Right now, she said, most people are using AI to accelerate tasks, not their thinking. "There's a huge opportunity gap. Imagine what happens when AI becomes the starting point, not the finishing point." The knowledge hierarchy has collapsed. 

What does that mean for managers?

For decades, the unspoken workplace rule was: experience = expertise. But when a new employee can show you a faster way to do something using AI, that dynamic explodes.

"Reverse mentorship is real," Sarah said. "And it's healthy. But it means managers need to evolve."

How? "Psychological safety is number one. If managers dismiss AI or show fear around it, their team won't experiment". The second piece is shifting from being the person with the answers to being the person who helps their team think. 

She delivers it straight up: "It's a leader's responsibility to critically assess thinking with their direct reports." The old model was: 'Tell me what to do.' The new model is: 'Help me think through this.'

What gives Sarah confidence about Gen Z and AI?

"This generation has an incredible mindset. They share openly. They try things. They teach each other. And AI is reshaping workplace culture in a way that creates more inclusion and more innovation."

And the benefits go deeper than output. "We're already seeing improved mental health, reduced absenteeism, and better accessibility and inclusion when AI tools are used well across teams. AI reduces cognitive load. That frees people up to do more meaningful work."

This is the part leaders often miss: Creating new capacity enables new possibilities. So, what should leaders do tomorrow? Sarah left me with one simple behaviour change:

"Ask your team: 'How did you use AI on this?' And then ask, 'How else could you use it?' It turns AI from a private shortcut into a shared learning moment." Because when AI becomes part of the conversation (not something people hide) capability builds faster. And that's the heart of this whole shift. 

My takeaway?

Gen Z isn't the disruption. The collapse of the knowledge gap is.

When anyone can get the "what" instantly, the work becomes the "how."

How you think. How you challenge. How you communicate. How you collaborate. How you lead. Gen Z is simply showing us the future first.

The rest of us? We're catching up — not in skill, but in mindset.

Try out Microsoft's free AI companion, Microsoft Copilot.

Feature image: Supplied.