Gen AI: How Different Generations Are Shaping the Future of Technology

Generative AI is no longer just a buzzword — it’s embedded into the way consumers live, work, and manage their daily routines. From drafting emails and conducting research to creating videos and powering customer service, AI is quickly becoming part of everyday life.

Today, 57% of U.S. adults are using generative AI tools, according to PYMNTS’ Generational Pulse Report. But just as adoption is growing, so are concerns. And, the way those concerns play out may depend heavily on age.

Here are the key findings from the report and what they mean for the future of generative AI adoption:

Younger Generations Are Leading the Way

Sixty-three percent of Gen Z consumers say they are very or extremely familiar with generative AI, compared to just 5% of Baby Boomers. The bridge generation of Zillennials (those born between 1991 and 1999) are close behind Gen Z — 53% reporting strong familiarity, and older Millennials at 46%.

And, these younger consumers aren’t just aware of AI — they’re putting it to use in all aspects of their lives. Two out of three Gen Zers and Zillennials use AI for both work and personal purposes. By contrast, adoption drops off sharply among older groups. Only 37% of Gen Xers and 10% of Baby Boomers use generative AI across both personal and professional settings. For many Baby Boomers, limited exposure and lack of familiarity remain the biggest barriers to adoption.

Generational Concerns Differ Sharply

Even as consumers embrace the productivity and convenience of AI, concerns remain widespread. PYMNTS reports that most consumers say they don’t fully trust generative AI, while 62% worry about misuse. But, the concerns about misuse differ by generation.

• Gen Z: The top concern is job loss. Nearly 40% fear AI could replace their roles, especially in entry-level positions that are most vulnerable to automation.
• Millennials: Split between the current state of AI tools and their long-term impacts. Younger Millennials are concerned with AI’s tendency to "hallucinate" misleading or incorrect information, while older Millennials are concerned most about the long-term impacts on human skills and creativity. 
• Gen X: Split between the concerns of Millennials and Baby Boomers. Nearly 1 in 4 Gen Xers are most concerned about the security of their personal information with the second highest concern being incorrect responses and answers from AI. 
• Baby Boomers: The biggest worries are privacy and reliability. Nearly half say they are concerned about misleading answers and the questionable accuracy of AI outputs.

It’s clear that every generation recognizes the risks, but the lens through which they view them — whether from an individual or systemic misuse — depends on age and stage of life.

What Financial Providers Should Take Away

The generational divide in generative AI adoption isn’t just an interesting trend — it’s a roadmap for how businesses can shape their strategies.

• Ease of Use Matters: Consumers will continue to prioritize tools that are simple, intuitive, and reliable. Younger consumers are already embedding AI into everyday routines, and others will follow as tools become easier to use.
  
  
• Trust Is Critical: Baby Boomers’ concerns about privacy and accuracy highlight the importance of building transparent, responsible AI systems. Without trust, adoption will stall.
  
  
• Productivity Drives Loyalty: Millennials are proving that when AI tools help users get more done, satisfaction soars. This is a clear signal for providers to focus on real, measurable outcomes. Whether this is onboarding, setting up direct deposits, or addressing issues, AI can be a powerful tool for growth in financial institutions.

The Bottom Line: Generative AI adoption is surging, but concerns remain and look different depending on age. Gen Z sees risks to their career growth, Baby Boomers are cautious about privacy, while Millennials and Gen X worry about the state of the tools as they stand. But, what unites all generations is a desire for tools that will help them navigate their personal, professional, and financial lives. Every generation recognizes that generative AI is here to stay — but have a lot to say when it comes to how they want it to support their lives.