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Gen Z wants to have their AI cake and eat it, too: KPMG intern survey reveals a generation that wants to have things both ways

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For years, headlines have warned of robots taking jobs, automation erasing careers, and artificial intelligence (AI) creating an uncertain future for younger generations. But if you ask Generation Z interns entering the workforce in 2025, the story looks very different.

According to a new survey of more than 1,100 KPMG interns across the U.S., Gen Z doesn’t see AI as a looming threat. Instead, they see it as a powerful tool they feel confident using to boost their performance. While half of respondents expect roughly 20% of their jobs to be automated once they start full-time roles, 92% believe they can adapt. What they want from their employers isn’t protection from technology—it’s mentorship, stability, and a healthier balance between work and life.

“Gen Z is making AI work for them,” said Derek Thomas, National Partner-in-Charge of University Talent Acquisition at KPMG U.S. “While other generations are still debating whether to use it, Gen Z is exploring new and creative ways to utilize AI for increased efficiency in their daily lives and enhance their performance at work.”

In an interview with Fortune, Thomas said he’s seen how, with the integration of AI into early-career workflows, “some of those mundane things that they were doing before can now be automated and the things that just didn’t take a lot of thought, more routine-type processes are now being done through technology.” New hires, often Gen Z, are getting to a point where they can go a deal with bigger and deeper issues, and using more critical thinking, than the previous expectation. They’re “diving into the analytical side, the more higher-risk, complicated side of things, earlier in their career than I probably would have when I was coming up.”

Digitally experimental, but cautious

The survey, conducted in July 2025, shows Gen Z’s comfort with AI stands out sharply compared to older peers in the workplace. 60% of interns described themselves as more experimental with AI tools than other generations, applying them not only to school and work projects, but also to personal tasks. Nearly nine in 10 already use generative AI at least once or twice per week.

Still, confidence doesn’t mean blind trust. When asked about risks, interns pointed first to over-reliance: the fear of losing creativity and critical thinking in the process. Misinformation and algorithmic bias followed closely as concerns. This blend of enthusiasm and caution sets the generation apart: They want to master new technology, but not surrender to it.

That tension extends to education as well. Just 8% said their universities strongly encouraged the use of AI tools, while more than half reported that schools permitted AI under structured guidelines. For Gen Z, the message is clear: AI is valuable, but boundaries and balance matter. KPMG’s Big 4 rival, EY, had similar conclusions in its own sweeping survey of Gen Z. They’re the “pragmatic generation,” Marcie Merriman and Zak Dychtwald wrote, approaching “life’s traditional milestones” with a sort of “reasoned skepticism” that comes from seeing lots of myths busted in their formative years.

Thomas said that’s an interesting view, and in his experience, he’s seen Gen Z wanting to see evidence before they commit to a certain approach. “For instance, coming into the office, showing them that benefit.” He said he’s seen an attitude among Gen Zers like, “Okay, you’re telling me it’s going to be good for me, but is it really?” The more that leaders can show them what the benefits will be, the more confidence they’ll have they’re not just doing something for the sake of doing it. This is certainly a big change for Gen Xers and older millennials, who were expected to show up at the office every day from 8:30 or 9:00 a.m. onward, no excuses.

A 9-to-5 rebellion

Perhaps the most striking difference between Gen Z and previous cohorts isn’t their relationship with technology—it’s their vision for the workplace itself. Traditional 9-to-5 schedules, a cornerstone of corporate life for decades, are not part of their ideal future. Nearly half of the interns surveyed said eliminating rigid workday structures was their top desired change.

What they want more than anything? Balance. Work-life balance ranked as the top priority when considering full-time jobs, surpassing salary. Interns voiced anxiety about when, or if, it was acceptable to step away from their desks, revealing how workplace norms still dictate subtle pressures. Many also want employers to reduce mandatory video requirements during virtual meetings and to place more emphasis on well-being than previous generations experienced.

Thomas said in the survey Gen Z wants “great careers with real balance … Here’s the irony: the most digitally connected generation in history knows that real career magic happens face-to-face. They want mentors, not just managers — and they are learning by experiencing and observing in-person interactions.”

Thomas summed up the attitude he sees from Gen Z workers: “Can I have flexibility to get the work done, as long as I’m showing the results that you need to see?” He said there’s give-and-take to this, as flexibility doesn’t mean coming in at 5:00 am when nobody is in the office. Once that negotiation is worked out, he added, “It’s been surprisingly easier to get the younger folks into the office more often and wanting to be there more hands on than some of the folks who’ve been around for a little bit longer, so I’ve been pleasantly surprised to see they really do thirst for that in-person interaction.”

Wellness benefits are central to that equation. Financial wellness topped the list of desired support programs, followed by flexible wellness perks and family-oriented benefits. For a generation that came of age during economic volatility, financial health and long-term security weigh heavily.

Mentorship over machines

Another notable revelation from the survey: despite being digital natives, Gen Z shows a strong preference for in-person learning over anything tech-enabled. Interns said face-to-face mentoring, peer-to-peer knowledge sharing, and hands-on projects were the most effective ways to learn.

Ironically, short-form videos and AI-powered adaptive learning—formats designed to appeal to fast-paced learners—ranked among the least preferred.

The survey also underscores the importance of office culture in their development. Respondents found in-person interactions most helpful for navigating workplace norms, whether by observing managers in meetings or sharing informal conversations over lunch. These interactions not only built confidence but also forged personal connections: A majority reported making five or more genuine friendships with fellow interns this summer. Gallup has found support for this in recent polling, with Gen Z emerging as the generation least enamored of remote work.

Stability in an uncertain market

Though Gen Z is often stereotyped as restless or job-hopping, the survey tells another story. Nearly 60% said they expect to spend most of their careers at just one or two companies, climbing the ladder by building expertise rather than constantly switching employers. Another 35% anticipate staying in one field while changing roles over time, while 27% say they will prioritize purpose over traditional career paths.

Whatever the trajectory, stability looms large. These preferences reflect the economic pressures Gen Z has grown up with: global recessions, inflationary shocks, and waves of layoffs across industries. Security and growth opportunities outrank the allure of constant reinvention.

“Gen Z wants to go deep, not wide,” Thomas said. “They’re looking for employers who invest in their growth, offer purpose-driven work and provide the stability to build meaningful careers over time.”

Fighting labels and shaping culture

Cultural identity remains a key driver for this generation. When asked about building inclusive workplaces, respecting different perspectives ranked highest on the list, followed by accommodating diverse working styles. Their biggest challenge in digital workplace settings, though, was deciding how much personality to reveal online—a telling signal for a generation often scrutinized for oversharing on social media.

One of the clearest messages from the survey is that Gen Z wants to redefine the stereotypes attached to them. Nearly half of respondents said the perception of their generation as “lazy or unmotivated” was the label they most wanted to eliminate.

That stereotype is increasingly at odds with survey data and the behaviors employers are already observing. Gen Z is technologically savvy, proactive about wellness, intentional about careers, and focused on learning from real human interactions. They may not buy into the rigid structures of past decades, but they’re motivated by building purposeful, stable, and balanced lives.

Thomas shared that he had to overcome that kind of bias himself, before he recognized that what he thought was a reluctance to work hard was really Gen Zers being much more comfortable setting boundaries with him than he would have been at that age. “I didn’t grow up knowing that I could establish boundaries, that it was okay to sit there and try to figure out how to have that balance,” he said, offering praise for what he experiences as a “really innovative group of individuals.”

The Gen Z proposition

For employers, this research is more than a generational snapshot. Companies that treat AI purely as a cost-cutting replacement risk alienating a generation that sees it as an enhancement. Organizations that cling to rigid work schedules or underinvest in mentorship may miss the chance to retain some of the most adaptable talent entering the workforce.

Gen Z isn’t asking for less work. They’re asking for work that is smarter, more flexible, and more sustainable—work that allows them to grow as professionals without sacrificing their wellbeing.

“This generation wants careers that fuel their ambitions without burning them out,” Thomas concluded. “Gen Z brings their whole self to work and expects their employers to support every part of that equation. It’s about building a fulfilling life, not just a successful career.”

At the end of the day, Thomas told Fortune, work is still work and nothing succeeds like success. One thing he tells new hires is that the better they perform, the more they’ll get their longed-for flexibility. “We do express upon them the importance of being able to demonstrate that [they] can get the work done, and that [they] can be relied upon.” That sounds like something downright old-fashioned: a strong work ethic.



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Unlimited vacation policies can work—it just depends on where employees are based

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For years, the prevailing theory amongst workers about “unlimited vacation” is that it actually encourages workers to take less time off. Without the entitlement to a set number of days, employees can feel awkward requesting days off, or worried that doing so will make them look less committed to work. 

But a new study from payroll and HR platform Deel finds it’s less about specific PTO policies than about culture. It all depends on where you live, says Lauren Thomas, the startup’s economist. 

On average, European employees with unlimited vacation policies took four more days off than their counterparts with fixed time off this year27 vs. 23. But in North America, there was hardly a difference, as both those with unlimited and fixed vacation policies averaged about 17.

“Americans and Canadians are definitely getting less time off, even when you only look at fixed time, than Europeans are,” Thomas said. “That is a combination of policy and culture.” 

In fact, Canadian workers are taking less time off than those in the U.S. Thomas said this is because 77% of U.S. workers have access to paid vacation, while just 73% of Canadians do, based on U.S. Bureau of Labor Statistics and Statistics Canada data.

But Americans and Canadians who work for companies that span the Atlantic do take more time off than their counterparts working for companies that do not have hires in Europe, Thomas said.

“I think companies need to think really carefully about how much productivity they’re really getting when they’re requiring so much [working] time from their employees,” she said. “At the end of the day, we know that time off is important for productivity, it’s important for making a good company, it’s also really important for attracting talent.” 

Which cities are best at encouraging workers to take time off to rest and recharge? Stockholm, Berlin or Paris, where Thomas found employees took 25 or more days off this year. 

Kristin Stoller
Editorial Director, Fortune Live Media
kristin.stoller@fortune.com

Around the Table

A round-up of the most important HR headlines.

The Society for Human Resource Management, or SHRM, was hit with a $11.5 million verdict after a former employee accused the trade group of racial discrimination and retaliation. Business Insider

As jobs get more niche, it has become harder for workers to explain exactly what they do to family and friends. Wall Street Journal

OpenAI says its tools save workers roughly 40 to 60 minutes per day, and has helped improve either the speed or quality of their work. Bloomberg

Watercooler

Everything you need to know from Fortune.

Leaning out. For the first time in a decade, fewer women than men are interested in getting a promotion at work. —Sasha Rogelberg

Interview test. Gagan Biyani, CEO of the education platform Maven, says he gives candidates live feedback during job interviews to see how they react. —Orianna Rosa Royle

Manager shake-up. As AI agents are automating busy work, some managerial drudgery can be avoided—but human interaction is still essential. —Beatrice Nolan



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Crypto wallets now feel a lot more like Venmo

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Crypto wallets are having a moment. The latest example is Kalshi announcing an integration with Phantom to offer event contracts to the wallet’s 15 million users. While the prediction market angle is intriguing (these markets are a HUGE story right now), the news also highlights the light-speed advancements taking place in the wallet realm.

Consider how, just three years ago, the only thing you could do with Phantom was access the Solana blockchain. MetaMask, meanwhile, was limited to Ethereum. Sure, alternatives like Coinbase Wallet offered access to more assets but, like other wallets of the time, it suffered from a ghastly interface that required users to run a gauntlet of sub-nets, confusing gas fees, and more. The experience was miserable for crypto natives. For everyone else, it was nigh impossible.

Then something changed. After years of promises, developers finally succeeded in pushing the clunky technical elements to the background, while adding a host of practical features. The result has been an uptick in useful real-world applications, including Phantom’s Kalshi offering, and also in souped-up new offerings like Coinbase’s rebranded Base as well as Robinhood Wallet.

This new generation of wallets offers the best aspects of decentralized crypto by making the customers the ultimate custodians of their assets. At the same time, they offer interfaces that are starting to feel like Venmo or online banking apps—which should be table stakes for any of these products looking to break into the mainstream. The question now is where these wallets will fit in day-to-day life. Will they become the successor to web browsers, as Coinbase CEO Brian Armstrong and others have predicted, or will they be something else entirely?

JP Richardson is the founder and CEO of Exodus, another leading wallet that recently added a suite of stablecoin payment tools. He told me the browser analogy doesn’t really fit, arguing wallets are better seen as a superior type of banking app—one that will be able to bridge disparate financial services. “We believe it should not be three apps, it should be one app. Why can’t you take your brokerage app, and tap and buy groceries?” he asked.

Trevor Traina, the founder of a wallet called Kresus, whose customers include Sotheby’s auction house, has another take. He believes the tools will have a much broader footprint. He sees a world where wallets are not just for managing our assets, but also become repositories for vital documents such as a will, insurance, or a law license. 

The technology is certainly there to support Traina’s vision. That includes blockchains, which can supply a permanent and tamper-proof ledger, but also newer privacy tools like zero-knowledge proofs. Together, this tech provides a way to safeguard all of one’s personal data, while also being able to meet the constant need to show identification that modern life demands. All of this could get more interesting still if wallets like Sam Altman’s World App, which includes an anti-bot biometric layer, get more traction.

Now for the cold water: Just because you build it doesn’t mean they will come—or come anytime soon at least. I spoke with analyst James Wester, one of the shrewder observers of the crypto and fintech scene, and he pointed out that the idea of an “everything app” has been around for years but shows few signs of getting adopted. A big reason for this is inertia.

Right now, our existing apps and payment tools work pretty well, so it’s unlikely we’ll see mass wallet adoption anytime soon without some sort of external nudge. Wester points out that Apple Pay and Google Pay have been around for a decade, yet a huge number of people keep paying with physical cards—because they can. This will change as younger people who are well versed in tech and crypto make up a greater portion of the economy. But until then, wallet makers may have to find a way to make their suddenly attractive products downright irresistible.

Jeff John Roberts
jeff.roberts@fortune.com
@jeffjohnroberts

DECENTRALIZED NEWS

Stablecoins at YouTube: In a landmark moment for crypto in mainstream commerce, YouTube is now giving U.S. creators on the platform the option to receive payment in the form of PayPal’s stablecoin PYUSD. (Fortune)

Circle’s new privacy coin: Stablecoin giant Circle is working with an upstart blockchain called Aleo to issue a spin-off of its flagship token called USDCx, which will let banking clients obscure private transaction histories. (Fortune)

Charters for all: The OCC issued national trust bank charters to Circle, Ripple, BitGo, Paxos and Fidelity Digital Assets. The move comes amid a broader move by the agency to issue more such charters, which do not allow taking customer deposits or accessing FDIC insurance. (Axios)

Tokenization tipping point? The SEC issued a no-action letter to the DTCC, which will let the country’s main clearing house custody stocks on the blockchain. The permission applies only to 1,000 of the most liquid stocks, but is a key first step for what is likely to be a wholesale shift toward putting custody and record keeping on-chain. (Bloomberg)

Think I’ll buy me a football team: Tether, whose CEO is Italian and a lifetime fan of Juventus, made a bid to buy the storied football club. Its board rebuffed the offer even as the publicly-traded club struggles to keep up with financial dominance of Premier League teams and Real Madrid. (Reuters

MAIN CHARACTER OF THE WEEK

Do Kwon in Podgorica, Montenegro, in 2024—before he was extradited to the U.S.

Filip Filipovic—Getty Images

Do Kwon is arguably the second most notorious fraudster in crypto history. Now, the Terra Luna founder, known for his “steady lads” rallying cry, will get to test how steady he is after a U.S. judge sentenced him to 15 years in prison. If it’s any consolation, this earns him Fortune Crypto’s weekly Main Character designation.

MEME O’ THE MOMENT

Satoshi Nakamoto wanted to reinvent finance. Now, he’s at the New York Stock Exchange.

@NYSE

The cult of Satoshi keeps spreading as the New York Stock Exchange becomes the latest venue to install a physical statue of the Bitcoin creator. 



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Magnificent 7 isn’t that magnificent: 5 stocks have underperformed the market this year

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S&P 500 futures were up 0.44%  this morning after the index lost 1.07% on Friday, a day after setting a new all-time high on Dec.11.

The index is still up 16% year-to-date—an above-average performance for U.S. stocks. Analysts have long complained that the index is dominated by the “Magnificent 7” tech stocks. Between October 2022 and November 2025 roughly 75% of gains in the S&P 500 came from this handful of companies.

But as we draw near to the close of the year, only two of those stocks—Alphabet and Nvidia—have beaten the market as a whole, year to date:

What appears to be happening is that investors are picking between winners and losers in tech, as opposed to just herding into the index or tech stocks as a whole. That’s probably healthy if you are worried that AI spending is creating a bubble in tech stocks.

The best example of this is Oracle, which is up a respectable 14% year to date but has declined 42% from its high in September. Investors have not liked the extra debt that Oracle has taken on, at increasingly wider interest spreads above the risk-free benchmarks, to fund its AI buildout. 

Wall Street is not yet ready to declare the AI gold rush a bubble. “If this is a bubble, it is still in its early stages,” Deutsche Bank analysts Adrian Cox and Stefan Abrudan said in a recent deep-dive research note on AI.

Thus far, the capital expenditure and the revenue is real: it’s hitting the top and bottom lines of Alphabet and Nvidia, and that’s why valuations for those companies are so healthy. “The charge is led by well-established Big Tech companies with multiple revenue streams, who are paying for their investment in data centers mostly out of free cash flow and from which they are generating immediate returns from enterprise customers,” Cox and Abrudan wrote.

“We think that reports of a bubble are exaggerated (for now),” they said.

Elsewhere: Asian markets were down today but markets in Europe largely rose in early trading. The STOXX Europe 600 was up 0.63% at the time of writing; The U.K.’s FTSE 100 was up 0.74%.

Here’s a snapshot of the markets ahead of the opening bell in New York this morning:

  • S&P 500 futures were up 0.44%  this morning. The last session closed down 1.07%. 
  • STOXX Europe 600 was up 0.63% in early trading. 
  • The U.K.’s FTSE 100 was up 0.74% in early trading. 
  • Japan’s Nikkei 225 was down 1.31%. 
  • China’s CSI 300 was down 0.63%. 
  • The South Korea KOSPI was down 1.84%. 
  • India’s NIFTY 50 was down 0.12%. 
  • Bitcoin was at $89K.
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