Microsoft Australia study: Gen Z staff lead workplace AI adoption despite job fears

Gen Z workers are enthusiastically embracing AI at work - and doing so with cautious optimism - according to a new Microsoft Australia study.

71% of young Australians worry that AI could lead to fewer jobs (rising to 87% in the finance sector), yet eight in ten say their AI skills have boosted their visibility with leaders and influence in shaping strategy.

The report, Ctrl+Career: How Gen Z are redefining success at work with AI, is based on a YouGov survey of 575 early-career professionals across Australia. Conducted in August 2025, the data reveals a generation navigating simultaneous optimism and career anxiety about the same technology.

Rather than letting fear hold them back, this is fuelling Gen Z to take charge of their careers, using AI to work smarter while keeping a critical eye on its outputs.

Teaching up: Gen Z is teaching AI to the C-suite and driving bottom-up innovation

The "Ctrl + Career" survey found Gen Z isn't just using AI, they're actively leading the charge:

• 83% report that senior leaders have asked them for help or ideas on using AI.
• 78% have introduced a new AI tool, workflow, shortcut, or prompt "hack" that was later adopted more broadly.
• 61% say they have built or customised an AI agent, not settling for off the shelf tools but proactively looking for ways to automate part of their job.

"These numbers are not about hype; they are about capability. Mutual mentoring at scale and hands-on AI innovation harnesses the bottom-up energy," said Sarah Carney, National Technology Officer, Microsoft ANZ. "Leaders need to create a culture that encourages learning across all their teams to accelerate AI adoption and fuel innovation."

Access isn't universal: Education, healthcare and public sector have the largest gaps

A digital divide is emerging that risks creating a two-speed workforce where some young employees race ahead with AI, while others are left behind.

• 30% of young workers say they are not given access to AI tools from their employer, yet some are allowed to use public tools (21%), raising organisational data security and confidentiality concerns.
• Just 2% of young workers in finance, telecom and tech say their employer prohibits AI use entirely, although this is much higher in education, healthcare (14%) and public sector (15%).

"AI should be a launchpad for every worker, not a privilege for a few. Especially for young professionals whose entire careers will be shaped by how they harness AI," said Carney. "Even in heavily regulated sectors, the answer isn't to stand still; it's to adopt AI safely and responsibly, because there is also the risk of doing nothing."

AI has become a personal hype squad

Gen Z are using AI as a training ground to learn, while building their confidence by practicing, polishing and probing.

• 38% turn to AI as their go-to learning tool to understand new topics and concepts.
• 79% of Gen Z workers credit AI with helping them communicate more professionally at work.

• 74% feel more confident presenting their ideas after using AI to prepare and polish.
• 72% feel more empowered to learn and solve problems independently.
• 40% look to AI first before their manager when they need a confidence boost, however when the stakes are higher such as navigating tricky team dynamics or risk, the majority (64%) turn to their manager first.

"Presenting in front of colleagues or pitching an idea at work for the first time is always nerve-wracking - but Gen Z has a secret weapon that we didn't: AI in their corner as a personal hype squad," added Carney. "AI should be a sparring partner to test and polish ideas, not just to do things faster. It's a way to build confidence and walk into the room more prepared."

Critical thinking in a world of shortcuts

This generation isn't naive to AI's limitations. They appreciate the productivity boost, but they're also asking hard questions about how AI could erode the deep learning and critical thinking that helps talent grow.

• 49% of Gen Z say feel they don't learn new content as deeply as they did before AI was part of their daily toolkit.
• Yet, 92% are confident in their ability to critically assess and challenge AI generated outputs.
• 88% say AI lets them spend less time on routine, repetitive tasks and more on strategic or creative work, however only 28% say they are using it for feedback and coaching, which is where the real value is gained.

"Our first AI-fluent generation is moving fast with technology, but with eyes wide open," said Carney. "Organisations that build frameworks for AI-driven critical thinking will see stronger capabilities. This means treating AI as a thought partner, not an answer machine: interrogating suggestions, testing counter-arguments, and fostering transparency around reasoning. We need to create a culture where it's normal to say, 'I asked AI for input, but here's where I challenged it."

Real-World Impact

Voices of young Australian professionals

Hyejun Park, Associate, Audit and Assurance, Grant Thornton Australia:

"At first, my manager was wary about using AI in our audits. I showed him how I was using a tool to spot anomalies in financial records. After a quick demo, he said, 'Keep using that.' Now it's part of how our whole team works together. It was cool to see my experiment turn into a team-wide improvement, and it definitely opened my manager's mind."

Kiara Morris, Construction Lawyer at Minter Ellison:

"AI has been like a practice coach for me. I can throw questions at it and simulate tough scenarios in court. As a junior lawyer, that's invaluable, it's helped me anticipate what might come up and walk into real situations with much more confidence."

Jett Potter, Consultant, Minter Ellison:

"I use an AI assistant as a second set of eyes on almost everything I write. By the time my draft reaches my manager, it's already been reviewed and refined by AI, for tone, logic, gaps. My work gets knocked back less because I've pre-vetted it with these AI helpers before any human sees it."