Gen Z: A Generation of 'AI-Preneurs'

A recent AI study from Samsung points to the transformative impact the technology is having on Gen Z and Gen Z "side hustle" culture specifically. AI is reshaping the side hustle, according to the study, by helping overcome many of the challenges in launching and sustaining a side business. The survey captured responses from more than 5,000 Gen Z respondents (18 - 27) in France, Germany, Korea, the United Kingdom and the United States. There were also responses from an additional group of roughly 1,300 Gen Z "side hustlers."

Dissatisfaction Driving Side Hustles

The study highlights growing dissatisfaction among young professionals with traditional jobs. (A different study from Upwork found that 71% of full-time employees are burned out.) According to the Samsung "AI-Preneur" report, nearly 50% of full-time Gen Z respondents said that their current jobs have not met their expectations. They cite work "inflexibility," job insecurity and a lack of creativity as sources of frustration or dissatisfaction.

As a consequence, 73% (across countries) said they were considering or actively pursuing side hustles, looking to explore opportunities that align better with their personal interests and goals. In the US the number was 81%.

AI Their 'Go-To'

After just under two years of general AI availability, 69% of Gen Z side hustlers regard AI as their go-to resource. It's not merely a tool for convenience; AI is becoming a foundational element of their business strategies, helping Gen Z manage time, enhance productivity and scale. (Gen Z are also using AI tools to get their "day jobs" done.)

The list of side hustles is long: personal trainer, dog walker, ghost writer, watercolor artist, personal coach, in-home chef; the list is virtually endless. And what are they using AI for – just about anything and everything really. The top tasks include summarizing documents and meeting notes, conducting research, finding inspiration, and developing new written or visual content.

There are some challenges. According to the report, "Gen Z is almost equally split between feeling optimistic about AI transforming work and feeling overwhelmed by the influx of new AI tools." Accordingly, they appear to prefer AI tools embedded within their existing devices (PCs, smartphones). While this finding is designed to support Samsung's AI pitch, it also aligns with the way Apple plans to deliver AI: embedded within the iPhone.

'Rank and File' AI Resistance

Gen Z is is bullish on AI. But that's not equally true of all workers. One of the observations from our conversations with several large SaaS providers and others is that there’s a reluctance among many "rank and file" employees to embrace AI. One CMO told us only about 10% of his 800 person marketing team was willing to utilize AI. It's possible that, among the 90%, there are "side hustlers" resisting AI in the office, but using it for their outside projects. There are no findings on this point in the Samsung study.

However, the survey identifies three "AI archetypes" among Gen Z side hustlers: super-users, experimenters and undecided, showing a range of attitudes. A 2024 survey from EduBirdie revealed that Gen Z has a complicated relationship with AI in the workplace – they use it, often in secret, and many feel guilty about it.

Despite McKinsey-led claims of breakneck AI adoption in the enterprise, there seems to be some inherent tensions and worker ambivalence – around change and job insecurity – as AI becomes increasingly a "thing." At the same time our research among local businesses (e.g., here, here) points to less friction and widespread testing or adoption of AI. 

Small businesses and side hustlers share a common challenge: a lack of time. To the extent that AI is seen as a means to regain time, it will be used – efficiency and productivity are recognized as AI's top benefits.

Side Hustle to Small Business

In the Samsung press release about the study, the company's divisional Head of Marketing, Stephanie Choi, noted that AI is opening, rather than foreclosing, new career paths for young entrepreneurs. Indeed, many of these side hustles will turn into real businesses in time. As an aside, it would be interesting to know what level of "rank and file" AI adoption exists within Samsung itself. 

Is the use of AI to support Gen Z side hustles merely a novel blip on the radar or a significant moment in the evolution of how individuals do their work? A year from now we'll have a better sense of how deeply AI is integrated into our daily work and lives. But it's already a central feature of the work-lives of people reading this.

This survey is yet another data point that tells us small businesses, individuals and solo entrepreneurs are going to lead the AI adoption charge. Without a doubt, the enterprise will get there but it's great to see Heather the contractor, Sam the property manager and Phillip the financial planner ahead of the curve for a change.