The Paradox Generation - How Gen Z balances AI and authenticity in CX

Gen Z has grown up with artificial intelligence in their pockets, from TikTok’s addictive algorithm to Spotify’s hyper-personalized playlists. But while they’re fluent in AI-powered living, they’re also the first generation to question what it’s doing to their humanity.

A generation caught between curiosity and caution

They are the Paradox Generation: comfortable with algorithms yet anxious about their influence, craving innovation but demanding emotional honesty. They’ll welcome a chatbot, virtual stylist, or AI-powered recommendation, as long as it feels helpful, transparent, and human.

For brands and marketers, this creates a crucial challenge: how can you meet Gen Z’s expectations for seamless, AI-driven experiences without losing their trust?

Innovation with conscience: Gen Z’s high adoption meets high anxiety

Research reveals the paradox clearly. According to Five9 2025 Customer Experience report, over half of Gen Z (55%) trust AI chatbots to give accurate information and nearly a quarter trust AI more than people for product or entertainment recommendations. Yet, 53% also say AI makes them anxious (2025 Gallup Voice of Gen Z study).

They’ve grown up on dystopian storylines, algorithmic scandals, and data breaches. They know how powerful AI can be and that awareness fuels skepticism.

When Duolingo launched its GPT-4-powered “AI tutor,” young users accused the brand of replacing human teachers. Social feeds lit up with memes and complaints. But behind the outrage, usage surged. Daily active users grew by 40%, and the company doubled its course catalog thanks to AI.

The paradox couldn’t be clearer: Gen Z may criticize AI, but if it genuinely improves their experience, they’ll keep using it.

Digital trust is the new brand currency

In today’s marketplace, trust is the ultimate differentiator and for Gen Z, that trust depends on two pillars: technical reliability and emotional honesty.

When a chatbot glitches or a recommendation feels off, it’s not just a product flaw; it’s a breach of integrity. AI that feels manipulative or unclear quickly undermines trust.

Fashion brand Guess experienced this firsthand last summer when it unveiled an AI-generated model in its advertisement in Vogue. Instead of admiration, the campaign triggered criticism over inauthenticity and unrealistic beauty standards. Likewise, AI influencers and virtual avatars attract curiosity but little credibility, only 37% of younger consumers say these synthetic personalities make brands more interesting according to Sprout Social’s 2024 influencer marketing report.

To build digital trust, transparency isn’t optional. Make it clear when users are engaging with AI. Admit its limitations. And ensure every algorithm serves people, not the other way around. The real measure of innovation isn’t how advanced the technology is, but how genuinely it serves people.

From Artificially Intelligent to Emotionally Intelligent

The next competitive edge in customer experience isn’t smarter algorithms, it’s emotional intelligence.

Consider Blooming Talk, a K-pop app allowing fans to chat with AI avatars and receive synthetic voice-clones of their favorite idols. It’s intimate yet artificial, an emotional echo rather than a true connection. Gen Z users are both intrigued and uneasy, sensing the gap between simulation and sincerity.

For brands, the takeaway is simple: design AI interactions that feel empathetic, not automated. An AI assistant that listens, understands tone, and responds with warmth builds trust far more effectively than one that simply solves problems.

Even in the workplace, this emotional dimension matters. According to KPMG 2025 Workplace AI Sentiment report, almost all Gen Z professionals (99%) say they’d welcome an AI “work best friend”, but only if it feels like a reliable ally, not a digital micromanager.

The human touch as a premium experience

Ironically, the more digital Gen Z’s world becomes, the more they value genuine human connection. In customer experience, this means AI should manage the routine, while humans handle complexity, empathy, and creativity.

Some brands already balance this beautifully. Ulta Beauty’s GlamLab app lets users virtually try-on makeup through AI and AR while personalizing recommendations with machine learning. Behind the tech lies emotional intelligence, shoppers feel seen and understood, leading to a 95% repurchase rate.

As automation expands, human contact becomes a luxury. In a world of endless chatbots, speaking to a real person now feels premium. The lesson for brands: empathy isn’t a soft skill; it’s a competitive advantage.

Key takeaway for brands and marketers

Gen Z’s paradoxical relationship with AI reflects a broader truth: the future of customer experience isn’t defined by technology alone; it’s defined by how it makes people feel.

To win over the Paradox Generation, brands must deliver experiences that are not just Artificially Intelligent, but Emotionally Intelligent. Because in the end, trust isn’t coded; it’s earned.

I explore this topic in depth in my keynote “Can AI help you?”, a session packed with fresh insights, real-world examples, and practical takeaways for CX professionals. Curious to learn more or book me for your next event? You’ll find all the details here!