AI’s generational shift: Who’s leading the charge?

AI has become an almost ubiquitous part of everyday life. It underpins and augments huge volumes of business and consumer technology platforms, analysing data, making predictions, and boosting productivity.

However, concerns and reservations about the use of AI still exist – and it appears that this reticence may inhibit its adoption, potentially slowing technological advancement. However, one key development that might change this is shifting demographics in the workforce.

Nearly a fifth (19%) of the North American and Western European workforce is comprised of Baby Boomers, but over 10,000 of this demographic will reach the age of 65 every single day by 2030. By then, Generation Z will constitute about 30% of the workforce. Gen Z’s differing attitudes to technologies including AI may radically shift the adoption of multiple technologies in both commercial and consumer settings.

AI infiltrating all areas of technology

Today, after decades of advancement, AI is prevalent in a vast number of capabilities we all take for granted in both our professional and consumer lives. Most people are not even aware that AI tech is powering the functions that underpin their lives. AI can be categorised into different variants, each with different applications and uses:

• Narrow AI: Used for specific tasks, like Siri or Google Assistant.
• Reactive Machines: React to stimuli without memory, like spam filters.
• Limited Memory AI: Learns from past data, used in predictions and self-driving cars.

Generative AI, the latest development within narrow AI, creates new content from patterns in large datasets and is widely used in coding, customer service, and the creative industries. One may think then that business demand for these solutions is overwhelming, considering the potential benefits and productivity savings.

However, research shows that businesses have a wide range of concerns with using AI. Cavell’s 2023 Telecoms Buyer Survey canvassed 2,000+ technology leaders – individuals responsible for the communications purchasing decisions in businesses across North America and Western Europe. Only 44% of businesses said they were already using ‘AI’ or ‘AI-enabled’ technologies. Meanwhile, 29% said that they neither used AI tech nor had any plans to in the future.

There is some regional variance; adoption and planned adoption of AI technology is higher in North America than in the UK or continental Europe by around a fifth. This implies a more open stance to emerging technologies on the Western side of the Atlantic, that is mirrored in other technology markets where the US often leads adoption. Still, more than a fifth (21%) of US businesses said that they have no plans to use AI tech.

Why the AI reticence?

There are always particular industries that are hesitant when it comes to emerging technologies. Even the well-established benefits of cloud computing only see advanced global markets, such as the US and UK, have around 40-50% of businesses penetrated by cloud-based solutions. Verticals such as defence, financial services, and healthcare are often prudent when it comes to deploying next-gen tech, and this now includes AI.

Research shows that businesses also have specific concerns around privacy and data. There have been various high profile cases of this within the customer service where AI enhanced automated communication systems have veered away from their intended purpose and the company deploying them has faced severe financial penalties.

Attitudes vary across the generational divide

It is important to remember however that technology adoption is not a uniform process. Distinct groups of people have differing levels of awareness, interest, and willingness to use new technologies, depending on their needs, values, and experiences. Research shows that age is a key factor that affects technology adoption, including that of AI.

Our Voice of the Consumer Report 2024 revealed significant differences in how different generations perceive and use AI and automation technologies. For example, younger generations (Gen Z and Millennials) are more likely to be familiar with and comfortable using AI-enabled devices and services, such as smart speakers, chatbots, and voice assistants, than older generations (Gen X and Baby Boomers). These differing attitudes towards technology more widely are likely to be reflected in changing levels of enterprise technology adoption over the next decade.

Progression in the workplace will be the deciding factor

Widespread industry research shows that a disproportionate volume of younger generations (Gen Z and Millennials) are in management and leadership roles currently. As these younger generations progress through their careers and achieve greater seniority it is likely that their more open attitudes towards technology will be reflected in their business decision making.

So, what does this mean for AI? Well it infers that there will be increased adoption of newer technologies and systems, including those bolstered by AI. As the generational profile of the workforce changes we can expect to see more businesses adopting and investing in the technology. This will in turn create a circular evolution further fuelling adoption and advancement, with AI likely to be almost universal in business technology systems by 2030, if not sooner.

First published on RCR Wireless News.