Ignore AI in CX? You’ll lose Gen Z and millennials fast

Do customers find you on TikTok, or buy your products from content creators on LTK? Do they approve of quick, AI-driven answers—but get frustrated by clunky human support? Chances are, you have Gen Z and millennial customers on your hands. And their expectations of your brand—and how you offer them support—are changing.

According to our survey of 2,300 Gen Zers and millennials, younger consumers agree that AI belongs in CX. In fact, more than three-quarters of Gen Z (80%) and millennial (83%) consumers now see AI as a modern, integral part of customer service—a figure that has jumped significantly since just last year (up 17 and 11 points, respectively).

However, the two generations differ on how they’ve integrated AI into their day-to-day lives, which brands are doing AI right, and what it takes to deliver top-notch service.

To understand these nuances, we interviewed 50 Gen Zers and millennials across the U.S. to uncover their real feelings on AI’s role in everyday life, brand interactions, and customer service. Their answers reveal their expectations—and demands—for brand interactions going forward.

Here’s what service leaders need to know to align their AI strategies accordingly.

As AI reshapes Gen Z, millennials reinvent to stay relevant

Younger consumers agree: AI is essential to their modern lifestyles. It powers everything from their travel plans to their creative endeavors.

But the perception of that power—and the potential to harness it—varies by generation.

Gen Z, the generation most comfortable with AI tools like ChatGPT, believes AI will completely reshape the trajectory of their lives. A belief that elicits both excitement and uncertainty.

“I love that AI can do it all,” said one Gen Z respondent. “But I hate realizing it might shape me more than I shape it.”

Indeed, AI has some Gen Zers wondering whether they’re making choices out of their own free will, or if the algorithm is doing it for them.

Like Gen Z, millennials recognize the transformative power of AI—but they’re no stranger to change. Having lived through economic turbulence and waves of tech disruption, they understand the need to reinvent themselves to stay relevant. AI is the next evolution they must keep pace with.

Whether it’s waking up in the morning with Alexa or using copilots at work, millennials have embraced AI to orchestrate their routines and make their lives easier. Return to a life without AI shortcuts?

Siri, play “We Are Never Ever Getting Back Together.”

AI adoption is just the start—younger consumers expect accuracy and answers to find them

While AI adoption is a non-negotiable for both generations, the two are divided in how they view brands’ tech savvy.

To millennials, AI adoption is the sign of an innovative brand—but it has to be done well. For example, millennials rely on AI to be their partner in researching and brainstorming. You’ll lose their trust (and their business) if you can’t deliver accurate citations and creative ideas.

AI-native Gen Zers have even greater expectations: they’re used to algorithms serving up hyper-relevant content, products, and answers without needing to search. And if they have to hunt for information, they feel the AI—and the brand—has failed them.

Millennials want AI-powered service and personalization. Gen Zers do, too—but without human intervention.

When it comes to customer service, Gen Z is all about self-sufficiency. Brands can meet this demand by offering AI-driven self-service options—helping Gen Zers avoid the need for human support.

Better yet, brands can leverage AI to create curated experiences that speak to Gen Z’s aesthetic. But don’t try too hard—if they sense any inauthenticity, you’ll give them the ick.

Unlike Gen Z, millennials are more open to service requiring a human touch, but they still expect AI to be a part of the equation. What matters most to millennials is personalization: they want customer support (human or AI) to remember things like what blender they bought last week—and what went wrong with it—in order to resolve their issues faster.

So, what can brands do to capture the hearts—and loyalty—of younger consumers? For starters, showcase innovation. Both generations see AI as a sign of brand relevance and modernity. Investing in advanced AI tools and communicating their benefits is critical for retention.

As for how to cater to each generation, here’s what to keep in mind:

To capture Gen Z’s loyalty, brands have to adapt to their AI-centric world, offering robust self-service and bot experiences that feel personal and allow them to get help on their own. As for millennials, brands need to meet their expectations for efficiency. Whether you employ an AI agent or a human supported by AI, focus on speed, intelligence, and recall to win their loyalty.

By aligning AI strategies with these unique generational insights, service leaders can deliver experiences that feel modern and seamless—and teach the algorithm what keeps consumers coming back for more.